NEWS & RESOURCES

Staff Entitled to Holiday Commission

British sales staff can now expect to receive their commission whilst taking annual leave, thanks to a ruling from the Court of Justice of the European Union which will change employment law within the UK.

Sales workers have previously only been allowed to receive their basic salary from their employers, even if their commission makes up a large percentage of their overall wage. This practice means that many workers are discouraged from taking their holiday entitlement out of fear of missing out on money.

The ruling follows a case from a sales worker at British Gas who brought the case to the European court who decided to take action after only receiving his basic pay whilst on holiday. British Gas claimed that as he was not ‘selling’ at the time, he would only be entitled to his basic salary. It was stated that the worker’s commission accounted for around 60% of his salary, and this cut prompted him to take the case to the UK Employment Tribunal.

The EU Court of Justice judgement overrules existing British legislation, which will now need to be changed, whilst British Gas have stated that “We’ll need to await the outcome of the U.K. Employment Tribunal’s decision to understand the precise impact of this European judgment on UK legislation,” according to Ralph Nathan, the company’s director of employment law.

This ruling poses important questions for UK businesses, especially from a HR and financial perspective, as companies will surely have to allocate funds and incentives to compensate commission workers. The European Union’s Working Time Directive exists to ensure that ‘every worker has the right to paid leave of at least four weeks’ and through not being able to receive remuneration in line with their average earnings, the Court ruled that his could serve as a deterrent for sales workers in taking annual leave at all.

The resulting actions from national courts will be interesting as they determine how much workers should be paid as a result of a representative average of the commission earned over a certain period, with resulting actions having implications as businesses are forced to pay additional holiday pay to their workers.

If you want to discuss the impact of this in more detail then please do not hesitate to contact us for some free initial advice.

SHARE THIS:

Instagram

GET IN TOUCH

Got questions? Looking for advice?

GET IN TOUCH

Got questions? Looking for advice?

RELATED RESOURCES

Explore our comprehensive library of related resources to gain valuable insights, expert tips, and helpful tools for optimising your HR practices.

SIGN-UP FOR UPDATES

Receive all the latest industry insights, expert tips and exciting updates from HR Solutions, straight to your inbox.

Strategic HR thinking whitepaper

Our latest HR whitepaper offers an in-depth analysis and strategic framework aimed at transforming Human Resources into a pivotal element of business success in the rapidly evolving corporate environment of 2024.

PARTNER REGISTRATION

Register your details below and we will contact you regarding how HR Solutions can support your organisation.

MAKE A GENERAL ENQUIRY

We’re here to assist you with any questions or enquiries you might have. Simply fill out the form below, and our dedicated team will get back to you.

REQUEST A PROPOSAL FROM US

We’re here to assist you with any questions or enquiries you might have. Simply fill out the form below, and our dedicated team will get back to you.

BOOK YOUR PLACE

Please complete the form and one of our team will call you back to discuss your query/booking.

Request your free trial

Register your details below and we will contact you about your 30 day free trial of the HR Knowledge Base.

REGISTRATION FORM

Register your details below and we will contact you about access to the HR Knowledge Base.  As part of your approved industry membership organisation you can get access to the HR Knowledge Base, created by Business HR Solutions, which is the go-to resource for thousands of business owners and managers across the UK.

2023/2024 SME BUSINESS SURVEY

Our latest 2023/24 SME Business Survey sheds light on the intricate dynamics shaping the SME sector and unveils critical insights that can guide businesses toward sustainable success.

IF YOU WISH TO PURCHASE HR ADVICE LINE TIME, PLEASE COMPLETE THE FORM BELOW.

HR Solutions are here to help. We offer a standard hourly rate package for ad hoc HR advice which means you can pay for what you need, whenever you need it, and then quickly get advice. Our highly experienced advisors are on hand to provide you with practical employment advice to help you manage your workforce.  You can purchase HR Advice Line time now, and the time purchased will be valid for 12 months.