The Court of Appeal has upheld the Employment Appeal Tribunal's decision in Lock v British Gas. Under the Working Time Regulations, workers have the right to at least four weeks' paid annual leave. European case law has now held that workers must receive their "normal remuneration" when on statutory holiday (but does not extend to the extra 1.6 weeks or any additional contractual entitlement). Normal remuneration includes results-based commission.

This decision is likely to be appealed before the Supreme Court by British Gas.

What Should Employers Do Next?

This judgment simply confirms what we already know; however, employers in industries where individual commission is the norm should consider following this area closely.