In February 2017, the Supreme Court refused British Gas’ request to appeal in the British Gas v Lock case.
This decision follows a Court of Appeal ruling in October 2016, which found that holiday pay calculations should include a representative amount of commission-based pay.
Lock, who had previously worked as a sales consultant at British Gas, argued that he was underpaid holiday pay because it was calculated using his basic salary without factoring in the additional money he would have earned through the organisation’s commission scheme.
The European Court of Justice (ECJ) determined that under Working Time Regulations, Lock would be entitled to have his holiday pay calculated based on his normal remuneration, which would include taking into account the commission payments he would ordinarily earn. This ruling was upheld by the Employment Appeal Tribunal in February 2016 and the Court of Appeal in October 2016.