Lock v British Gas set for Court of Appeal

In our February Newsletter we reported on the decision of the EAT in Lock v British Gas which confirmed that holiday pay should include commission payments.

We also indicated that British Gas were set to pursue an appeal to the Court of Appeal; we now know that the appeal will be heard between 11 and 13 July 2016.

At the appeal British Gas will continue to argue that it is wrong to try and interpret UK legislation about holiday pay in accordance with the EU Working Time Directive.

It remains to be seen whether the Court of Appeal will take a different view to that of the first instance employment tribunal and the Employment Appeal Tribunal. Certainly the direction of travel in these cases so far has been the expansion of holiday pay entitlement.

That is further underlined by the recent decision in White and others v Dudley Metropolitan Borough Council in which a first instance tribunal has held that voluntary overtime (as opposed to compulsory overtime which was considered in the Bear Scotland case) will also need to be reflected in holiday pay in certain circumstances.

Whichever way the decision goes, it is hoped that employers (and employees) will have a greater degree of certainty about how holiday pay should be calculated.

Dominic Bonham