Evans v Malley Organization Ltd (t/a First Business Support) [2002] EWCA Civ 1834 (27 November 2002)

Evans v Malley Organization Ltd (t/a First Business Support) [2002] EWCA Civ 1834 (27 November 2002)

Remuneration for Mr Evans did not vary with the amount of work done during normal working hours but with the success achieved, so holiday pay is to be calculated on basic salary only under section 221(2) of the Employment Rights Act 1996. Pay during suspension is also limited to basic salary absent evidence of custom, practice, or contractual entitlement to more.

Citation
[2002] EWCA Civ 1834
Parties
Applicant/respondent: Martin Evans; Respondent/appellant: Malley Organization Limited (T/A First Business Support)
Jurisdiction
England and Wales
Judgment Date
27 November 2002
Procedural Posture
Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal
Outcome
Appeal allowed; order of Employment Tribunal reinstated.
Legal Topics
Holiday Pay Calculation, Commission Payments, Suspension Pay, Employment Contract Interpretation, Working Time Regulations
Employment Law Holiday Pay Calculation Commission Payments Suspension Pay Employment Contract Interpretation Working Time Regulations

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Parties

Martin Evans

Applicant/respondent

Malley Organization Limited (T/A First Business Support)

Respondent/appellant

Procedural Posture

Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal

Legal Issues

  1. 1 Whether holiday pay should be calculated on the basis of basic salary only or include commission
  2. 2 Whether pay during suspension should include commission or be limited to basic salary

Ratio Decidendi

Remuneration for Mr Evans did not vary with the amount of work done during normal working hours but with the success achieved, so holiday pay is to be calculated on basic salary only under section 221(2) of the Employment Rights Act 1996. Pay during suspension is also limited to basic salary absent evidence of custom, practice, or contractual entitlement to more.

Court Disposition

Appeal allowed; order of Employment Tribunal reinstated.

Orders

  • Respondent to pay 90% of appellants' costs of the appeal.
  • No order for costs below.