Energy firm will appeal the employment tribunal’s ruling on holiday pay
British Gas has announced it will be appealing the ruling of the Employment Appeal Tribunal, which decided that employers should take commission into account when paying employee holiday pay.
A former British Gas employee, Joe Lock, brought a case against his energy firm employer when he noticed that he was receiving only basic pay for the weeks when he took annual leave. Mr Lock complained that he was therefore being penalised for taking annual leave, as commission made up a significant percentage of his salary.
The case was brought before the Employment Law Tribunal who sought the advice of the European Court of Justice. It recommended that commission should be calculated as part of an employee’s holiday pay. Predictably, British Gas appealed this decision, but an Employment Appeal Tribunal ruled that the decision would stand.
British Gas will now appeal to the Court of Appeal; if this is rejected a tribunal will convene to decide how much compensation Mr Lock will receive from his former employer. However, experts from Irwin Mitchell Solicitors expect the appeal to be granted.
Lucy Lindstrom, head of employment law at British Gas, commented: “We have requested permission to appeal to the Court of Appeal so that there can be a definitive ruling on this issue.”
If the final appeal is rejected or the appeal tribunal rule against British Gas for a third time, it could result in thousands of workers across the nation claiming losses from commission pay that they never received during annual leave.
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