British Gas Trading Ltd v Lock & Anor

British Gas Trading Ltd v Lock & Anor

The Working Time Regulations 1998, enacted to implement Directive 2003/88/EC, can be interpreted to require that holiday pay for workers with normal working hours whose remuneration does not vary with the amount of work done must include an element referable to contractual results-based commission, as this interpretation is consistent with the grain and underlying thrust of the legislation and the Directive's requirements.

Parties
Appellant: British Gas Trading Limited; First Respondent: Mr Z. J. Lock; Second Respondent: Secretary of State for Business, Innovation and Skills
Jurisdiction
England and Wales
Judgment Date
07 October 2016
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Holiday Pay, Statutory Interpretation, Conforming Interpretation, Commission Payments, Working Time Regulations, Directive 2003/88/ec
Employment Law European Union Law Holiday Pay Statutory Interpretation Conforming Interpretation Commission Payments Working Time Regulations Directive 2003/88/ec

Case Brief

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Parties

British Gas Trading Limited

Appellant

Mr Z. J. Lock

First Respondent

Secretary of State for Business, Innovation and Skills

Second Respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the Working Time Regulations 1998 can be interpreted to require holiday pay to include results-based commission for workers with normal working hours whose remuneration does not vary with the amount of work done
  2. 2 Whether a conforming interpretation is possible under EU law and domestic principles

Ratio Decidendi

The Working Time Regulations 1998, enacted to implement Directive 2003/88/EC, can be interpreted to require that holiday pay for workers with normal working hours whose remuneration does not vary with the amount of work done must include an element referable to contractual results-based commission, as this interpretation is consistent with the grain and underlying thrust of the legislation and the Directive's requirements.

Court Disposition

Appeal dismissed

Orders

  • The Employment Tribunal's interpretation of the Working Time Regulations 1998 is upheld, requiring inclusion of contractual results-based commission in holiday pay for Mr Lock.
  • The wording implied into the Regulations should be appropriately confined to contractual results-based commission.