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Holiday pay ruling takes off
Easyjet has become the first airline to pay cabin crew their holiday entitlement including any commission following the landmark case of Lock v British Gas in May of this year.
Mr Lock was a salesman for British Gas. He received commission for successful sales in addition to his basic pay. His holiday pay was based on basic pay only. Mr Lock argued that whilst he was on holiday he was unable to generate commission and claimed that his holiday pay should reflect what he would have earned from commission. The European Court of Justice concluded that workers who received commission as a regular part of their salary should have this included in their holiday pay calculation.
The Lock case has been appealed and is due to be heard by the Employment Appeal Tribunal in December this year, however, Easyjet have decided not to await the decision and have already begun to include commission into their employees’ new holiday pay calculations. This was due in part, after 2,000 members of the Unite Union balloted over whether or not to take strike action. Easyjet will also compensate eligible staff for underpayment of holiday for the preceding two years.