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In November 2014, we reported that the Employment Appeal Tribunal (EAT) had ruled that commission earnings and non-guaranteed overtime must be taken into account when calculating holiday pay; following the case of Lock v British Gas. 

Can employers do anything about back-pay?

Our advice:

It is a good idea to review all commission and overtime arrangements, which should include making sure that your terms and conditions within employment contracts are absolutely clear on the issue, with correct and up to date information.

Can employers limit the amount of holiday back pay they are liable for?

It may be wise to review the employee holidays taken within the past 3 months, to ensure that commission and non-guaranteed overtime have been paid for all relevant employees.  Once this has been done, it will be too late for employees to claim past this three month period, which would only leave employers liable for future holiday back-pay claims.

Employment law advice

For more information and advice about holiday pay arrangements and to check whether your contracts of employments will protect you if an employee should claim against you, call an employment law experts.

Bray & Bray have three main offices across Leicestershire, feel free to phone or pop in to talk to our solicitors.