British Gas ruling will hit recruitment agencies

Legal scales

The Supreme Court has refused British Gas the right to appeal a ruling concerning holiday pay that is set to have far reaching consequences for recruitment agencies.

In a statement released yesterday, union UNISON revealed the court had refused the right to appeal an Employment Appeal Tribunal ruling in the Joe Lock holiday pay case.

The ruling, originally in a case brought by public service union UNISON against British Gas, confirms that anyone whose pay includes an element of commission, such as recruitment consultants, can no longer be paid less for periods of annual leave.

The ruling means agencies will now have to look more carefully at how they calculate holiday pay for consultants, as this sum must be based on both their basic pay and any commission they earn.

The Court of Appeal confirmed the ruling concerning holiday pay in October last year, when British Gas confirmed it would be applying for permission to appeal the decision at the Supreme Court.

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