Easyjet decide to change their holiday pay policy
You will no doubt be aware by now of the ongoing issue with regards to how holiday pay is calculated and whether it should include payments like commission and bonus payments.
The issue arose following a series of cases on holiday pay most notably Mr Lock v British Gas. This case was decided by the European Court of Justice earlier this year and it was agreed by the European Court that the payments Mr Lock received during his holiday should include commission and not just his basic pay.
This case has been returned to the Employment Appeal Tribunal to decide on appeal the interpretation of UK law. As a result many employers have taken the decision to await the outcome of the case, which is due to be heard in December 2015, before making a change to their holiday policy and calculations.
However, Easyjet have recently announced that they are going to include commission into the calculation of employees holiday pay.
Easyjet cabin crew receive a basic salary and are able to increase their salary with commission on sales.
Prior to the change employees would only receive basic pay for any time they took holiday, thereby reducing the amount that they received in the month that they took holiday.
The decision comes as part of the Company’s negotiations with staff and Unions regarding pay packages. Easyjet have taken the decision to make the change regardless of the outcome of the Employment Appeal Tribunal and see it as part of attractive benefits package for employees.
If you would like to read more about the Lock case you can find the article about it here
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The information contained in this blog post is provided for guidance and is a snapshot of the law at the time it is written. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.
The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.