Commission workers and holiday pay

LizziC84

My husband is a salesman for a medium sized family run business. A large chunk of his monthly wage is made up of commission, it almost accounts for half of his monthly pay. We were discussing going on holiday in September but my husband was reluctant to take time off during this month because it’s generally a busy month for sales and he would lose too much money. Apparently his employer does not factor in commission for holiday pay. Is this right? I had seen something online which states it is law for employers to compensate employees for commission lost during annual leave but can’t find anything definitive? 

Marcon

LizziC84 said:

My husband is a salesman for a medium sized family run business. A large chunk of his monthly wage is made up of commission, it almost accounts for half of his monthly pay. We were discussing going on holiday in September but my husband was reluctant to take time off during this month because it’s generally a busy month for sales and he would lose too much money. Apparently his employer does not factor in commission for holiday pay. Is this right? I had seen something online which states it is law for employers to compensate employees for commission lost during annual leave but can’t find anything definitive? 

I think the case you might have spotted is Lock. There's a good explanation here: https://www.lindsays.co.uk/news-and-insights/insights/holiday-pay-must-include-commission

LizziC84

Thank you. It seems pretty clear from this article that his employer isn’t doing the right thing so I will get him to take this up with his manager. Just wish there was something more official like a gov.uk page we could refer them to. 

Marcon

There is! Try https://www.acas.org.uk/checking-holiday-entitlement/calculating-holiday-pay