A timely example of how the European Union can affect UK employment law

You will have had to have been out of the country (or perhaps out of the EU) this weekend to have missed David Cameron’s announcement that a referendum will take place this summer to decide whether the United Kingdom should remain a member of the EU.

The Employment Appeal Tribunal has published a judgment today in Lock v British Gas, which is prime example of how the UK’s membership of the EU affects the development of employment law in this country.

You may have heard of this case before as the Employment Tribunal previously held that Mr Lock (who earned basic pay and results-based commission) was entitled to be paid both an element of basic pay and an element of the results-based commission during his annual leave. The Employment Tribunal stated that words should be read into the relevant UK legislation ((the Working Time Regulations) to ensure that it complied with the EU legislation.

Today, the Employment Appeal Tribunal has dismissed the appeal brought by British Gas. The EAT agreed with the Tribunal and held that it was necessary to imply words into the WTR to ensure that it that it properly reflected the EU law.

This issue surrounding the calculation of holiday pay has been developing rapidly over the last couple of years and it will not avoid being affected by the result of the referendum to be held this summer, prompting further developments in this area in the later part of this year.

For any further information on this or any other Employment matter, please contact Keith Land on 0191 226 4892 or keith.land@sintons.co.uk

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