The Government has set out the new rates for compensation payments in the Employment Rights (Increase of Limits) Order. The following changes will come into force effective from the 6th of April 2017.
Following recent developments, the Supreme Court has refused to give British Gas permission to appeal against the earlier ruling of the Court of Appeal that confirmed that contractual results-based commission should be taken into account when calculating holiday pay (British Gas V Lock).
Some questions however remain unanswered by this ruling. There is still no clear guidance on what the appropriate reference period should be for the calculation.
However, there may be light at the end of the tunnel as according to reports, the Employment Tribunal should make a decision on the outstanding matters later this month. This should bring more clarity to employers on calculating holiday pay for those on results-based commissions.