ECJ confirms that commission must be included in a salesman’s holiday pay

British Gas employed Mr Lock as a salesman. Mr Lock’s monthly pay consisted of his basic pay and a variable sales commission (SC). Mr Lock only received his basic pay for a period during which he had taken holidays - since he would not have earned a SC during the period.

Mr Lock argued that his holiday pay should include an average SC. The ECJ agreed. The ECJ added that a national court should determine the method of calculating the average SC. (The Advocate General said that Mr Lock’s average SC over the last 12 months appeared to be an appropriate amount that should be included in his holiday pay.)

Lock v British Gas (C-539/12)