Share this content

Holiday Pay Rate calculation-include commission earned?

Holiday Pay Rate calculation-include commission...

Didn't find your answer?


Can anyone confirm or otherwise whether you should now include commission earned when working out holiday pay. I have heard that since July this is now recommended but its not mandatory as there are some tribunal cases going on where the outcome is not known yet.

eg When working out what rate to pay, apparently you take average pay over the previous 12 weeks to include commission earned and then use that rate for the holiday pay for the following week's holiday ie week 13. Is this correct or not?

Thanks for any help

Replies (8)

Please login or register to join the discussion.

By Tim Vane
30th Sep 2015 15:10

I think current advice is to include commission for employees whose pay usually includes commission, considering the previous 3 months overall earnings and basing holiday pay on that figure. Where 3 months is not a good indication (i.e. for seasonal sales etc) you may need to be more flexible.

But you are right I believe there is going to be more to come on this.

Thanks (0)
Routemaster image
By tom123
30th Sep 2015 15:48

Alternative view.

Our staff have territories, and when on holiday a colleague will 'cover' the area enquiries - but the commission goes to the 'owner'.

Hence, we are not planning to make any changes.

Worth commenting that we are selling capital goods, whose sales take 6-12 months to conclude - so probably not comparable to someone selling business consumables etc.

Thanks (0)
avatar
By Kazmc
01st Oct 2015 14:27

.

I would also be interested to know whether it is mandatory yet or not.

Are there also guidelines with respect overtime payments and holiday pay?

Thanks (0)
Replying to Tax Dragon:
avatar
By Kazmc
01st Oct 2015 14:51

.

mrme89 wrote:
http://www.pwclegal.co.uk/news/holiday-pay-commission-should-be-included...

 

This says "commission should be taken into account" but at the bottom says waiting "to establish the full implications". Not very clear whether is has to be adhered to yet?

Thanks (0)
avatar
By Gem7321
01st Oct 2015 16:44

Does anyone have any thoughts on how this applies to callout payments?  Would you class an additional payment/bonus for a callout as commission or non-guaranteed overtime? 

Thanks (0)
Replying to lionofludesch:
Routemaster image
By tom123
02nd Oct 2015 07:05

Depends what they are for

Gem7321 wrote:

Does anyone have any thoughts on how this applies to callout payments?  Would you class an additional payment/bonus for a callout as commission or non-guaranteed overtime? 

I suppose it depends on what the callouts are for:

If they are for the burglar alarm (ie totally random / rare) then I would expect these to be excluded.

If they are actually part of the usual pattern of trade, then potentially these should be included.

Thanks (0)
avatar
By Gem7321
02nd Oct 2015 11:31

It is a business service offered, and for which the customer is charged, but the employee who completes the callout is paid a small bonus for the inconvenience which is meant to cover any expenses which they may have incurred. 

 

Personally I think they should be included in the calculation, but I'm having some difficulty in convincing my MD.

Thanks (0)
Share this content