Holiday pay must reflect commission, Court of Appeal rules

11 October 2016

The Court of Appeal has decreed in favour of UNISON’s argument that workers who normally earn commission should not lose this income during periods of annual leave.

In a case against British Gas on Friday (07 October 2016), the Court confirmed that holiday pay should reflect commission earned by workers rather than simply their basic pay.

“Until now, some employees who relied upon commission and overtime lost a significant amount of money,” UNISON General Secretary Dave Prentis said. “It’s only fair that workers should receive their normal pay, including their regular commission, whenever they take their annual leave.”

The Court’s decision represents a major victory for UNISON, which has been fighting on behalf of workers earning commission for four years. However, British Gas is continuing to fight the outcome, and has already applied for permission to take the case to the Supreme Court, where the company hopes to repeal the decision.