Motor Trade Legal News
Lock: Calculation of Holiday Pay
We have reported previously on the ECJ’s decision in Lock & Ors V British Gas Trading Ltd and the application of the ECJ decision by the Employment Tribunal, which held that Mr Lock’s holiday pay should include an element for his commission.
Holiday Pay – The Lock Decision (2)
The Employment Tribunal in Leicester has handed down its long awaited decision in Lock v British Gas.
Mr Lock was a Salesman on a basic salary with variable commission paid in arrears. Mr Lock's commission depended not on the time worked, but the outcome of that work, i.e. the sales achieved. Mr Lock could not earn commission whilst on leave and therefore, would lose income by taking it. As members are aware from previous articles, Mr Lock brought a claim for his "lost" holiday pay after taking leave in December 2011 to January 2012.
MILS successful in the High Court
MILS have been successful in recovering substantial damages for our client, following a case in the High Court: Reuse Collections Limited v Sendall & May Glass Recycling Limited.
The case involved a senior employee in our client’s business, who had left and set up a rival company and indeed had made extensive preparations/arrangements to do so whilst he was still employed. We argued on behalf of our client that he was in breach of implied duties he owed our client and express post termination restrictions. It was also argued that the rival company was liable too, for conspiring with the ex-employee in breach of contract with our client. The Judge awarded damages to our client of over £50,000.
The case is interesting reading for those involved in HR / employment law. On the facts here, the restrictive covenants were not enforceable due to the lack of some real monetary or other benefit passing between the parties. The Judgment also considers the extent of fiduciary duties and duties of fidelity/good faith owed by employees and directors to their employers.
Employees succeed in holiday pay appeals: non-guaranteed overtime must be included
Few of you who have opened a newspaper or listened to the news in the last few days will have missed the latest developments on holiday pay.
On the 4th November 2014 the Employment Appeal Tribunal (EAT) handed down its judgment in the joint appeals of the Fulton v Bear Scotland, Hertel and Amec cases. The judgment confirms that workers have the right under Article 7 of the Working Time Directive (WTD) to be paid “normal remuneration” during their basic 4 weeks “EU leave” but not the additional 1.6 weeks under regulation 13A of the Working Time Regulations (WTR). Pay must therefore be based on typical average pay and not based only upon basic pay only.
STOP PRESS: Holiday pay ruling expected later today and its implications for businesses.
MILS members may have heard that two important decisions of the Employment Appeal Tribunal (EAT) are expected today on whether or not ‘voluntary’ overtime should be used when calculating holiday pay for employees. This follows related developments earlier this year in Lock v British Gas on the inclusion of commission in holiday pay.