After consultation with the European Court of Justice over the long running case of Lock vs British Gas Trading, an employment tribunal has ruled that previously earned sales commissions must be compensated pro-rata, in the calculation of holiday pay for sales people.
Clive Jefferys of recruiter JMA Network said: "This is a landmark decision with far reaching consequences for any company employing sales people within the European Community."
Sales people may be entitled to backdate claims for a two year period, based on full paid holiday entitlement of at least 5.6 weeks in the UK.
For example, salespeople earning £60,000 pa, of which 50% was drawn from commission, could be entitled to an extra £3000 pa from their employer.
The ECJ has left the implementation of this ruling to national courts for the moment, but it does seem likely that it will become part of UK employment law in the not too distant future, noted Jefferys.