Commission
The Court of Appeal has held that the Employment Appeal Tribunal (EAT) was correct to uphold an employment tribunal decision that the Working Time Regulations 1998 can be interpreted to require employers to include a worker's commission in the calculation of his or her holiday pay.
David Malamatenios is a partner at Colman Coyle Solicitors. He rounds up the latest rulings.
The Employment Appeal Tribunal (EAT) has refused to interfere with the tribunal decision that the Working Time Regulations 1998 can be interpreted to require employers to include a worker's commission in the calculation of his or her holiday pay.
On its return from the European Court of Justice (ECJ), the employment tribunal in this important case has read an extra subsection into the Working Time Regulations 1998 (SI 1998/1833) to comply with the Working Time Directive (2003/88/EC).
The European Court of Justice has held that a worker's commission payments must be included in the calculation of his or her holiday pay.
In Peninsula Business Services Ltd v Sweeney the EAT holds that a sales executive's contract of employment incorporated the rules governing the employer's commission scheme, which specified that no payments of commission would be made if the employee was no longer in the employment at the date the commission would have been payable. Those rules were clearly set out in a written document that was specifically referred to as forming part of the contract, and which had been signed by the employee.
In Evans v Malley Organisation Ltd t/a First Business Support the Court of Appeal holds that an employee who was paid a basic salary, plus commission which depended on contracts he won for his employer, was entitled, on termination of his employment, to accrued statutory holiday pay calculated by reference to his basic pay alone, and not his average pay including commission.
In Robertson v Blackstone Franks Investment Management Ltd, the Court of Appeal holds that an investment consultant suffered unlawful deductions from his wages when commission earned in respect of work done before his contract was terminated, but payable after termination, was not paid.
Employment law cases: HR and legal information and guidance relating to commission.