Many employers have faced uncertainty this year in relation to holiday pay in light of the European Court of Justice’s decision in Lock v British Gas.
Different employers will be affected in different ways and therefore the exposure to risk varies greatly across the business community. While some employers may have actively chosen not to change their processes, others have already done so or plan to do so in the future.
One company that has recently taken the plunge to change their policy (and the first airliner to do so) is Easyjet, which has announced that commission will now be included in the calculation of cabin crew members’ holiday entitlement. The airliner has also decided to compensate staff for underpayments in the last two years, in line with legislation which came into effect earlier in the year limiting exposure to liability for wages claims to two years.
For those businesses taking the “wait and see” approach, it is worth noting that the Lock case is likely to hit headlines again in December when British Gas’ appeal will be heard by the Employment Appeals Tribunal. While many commentators think it unlikely that the EAT will allow the appeal, the hearing may draw employees’ attention to the issues in the case once again.