Holiday pay must now include commission

Salon owners will now be liable to pay therapists holiday pay wages that reflect their commission earning, following a ruling by the European Court of Justice.

In the recent case of a sales consultant for British Gas took his employers to tribunal because his holiday pay only reflect his basic salary and not his commission earnings, which on average accounted around 60% of his pay each month.

The judges ruled that, as the commission was directly linked to the work the sales consultant normally carried out, even though it fluctuated month by month, it was regular enough to considered as part of his usual monthly remuneration