Commission payments: Do you have to pay while your employee is away?

A recent ruling by the European Court of Justice (ECJ) is food for thought for employers who don’t want to get caught out when navigating the minefield that is holiday pay and entitlements. The ruling has decreed that whilst employees are taking annual leave, they should be entitled to the commission they might have earned if they were working. This case involved an employee whose salary was part basic and part commission but his holiday leave entitlement was calculated only on his basic salary. The ECJ found that not including commission when calculating holiday pay could deter the employee from actually taking annual

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