Anyone know much about employment law?

Joebob

Joebob

Joebob

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My question in particular is regarding holiday pay. As I have always understood it, if you get paid commission, bonuses or even overtime as a regular part of your take home pay then you are entitled to an average of this (worked out as an average from the previous 12 weeks) when you take annual leave.

Commission makes up a sizable chunk of my take-home pay, but my employer doesn't pay an average for holiday pay. I called ACAS and they confirmed what I already thought regarding them needing to pay an average so I took it up with my union rep. She has come back to me and said that ACAS have told her differently!!!

Anyone know the actual law regarding this area or even where I will be able to find some clarification?
 
Normal pay is the minimum you earn for doing your days work, before bonus and commission.

That's how I understand it, so you will be paid your salary.
 
It is on basic pay unless your employment contract states otherwise. If they provided you with a copy check that or at the very least the company handbook that they should have provided you with of which should detail such things.
 
Pudney@work said:
http://www.acas.org.uk/CHttpHandler.ashx?id=955&p=0

ACAS leaflet, page 7, bullet point starting "If a worker's pay varies..." suggests you would be entitled to an average bonus/commission payment. Maybe something to print out and show your rep?
Click to expand...

That's brilliant, thanks. Just what I was looking for.

• If a worker’s pay varies with the
amount of work done then the
amount of a week’s pay is the
pay for the normal weekly
working hours multiplied by the
workers average hourly rate over
the preceding 12 weeks. This
may occur under a piece work,
bonus or commission system.

So in a nutshell I should be receiving an average of my commission in with my Holiday pay. I know some people on here have said that it should just be your basic salary but you have to remember that most sales jobs have a very low basic salary as they expect you to make up the difference with your commission.
 
robskinner said:
Hmm, though thats out of context for a sales job surely as your amount of work done doesn't vary?
Click to expand...
Of course it does. I work in telesales and the amount of commission I make can be directly attributed to the amount of calls I make, i.e. if I make 200 dials a day I'm likely to earn substantially more than if I just make 50.!!!
 
All depends on your contract really. If they pay you minimum wage and then add commissions as bonuses and any hours over 39 per week as voluntary overtime then you could only be entitled to a very small amount.

Bonuses do not have to be included as well as 'voluntary overtime' in the average calculations.
 
robskinner said:
Hmm, though thats out of context for a sales job surely as your amount of work done doesn't vary?
Click to expand...

I suppose it depends upon the expectations. Tbh what I posted from ACAS surprised me as I thought otherwise but hey ho. I would imagine it's because although commissions arent part of your "basic" pay if you earn them regularly as part of your remuneration (i.e. sales) then it becomes part of your expected earnings.

But either way it's all new to me :D
 
On another note, if I haven't taken nor am I forced to take holiday before my entitlement year finishes, who loses, me or the employer.
Does the employer have to legally pay me the minimum holiday entitlement due (5.6 weeks)
Or do I lose them?
 
Joebob said:
That's brilliant, thanks. Just what I was looking for.

• If a worker’s pay varies with the
amount of work done then the
amount of a week’s pay is the
pay for the normal weekly
working hours multiplied by the
workers average hourly rate over
the preceding 12 weeks. This
may occur under a piece work,
bonus or commission system.

So in a nutshell I should be receiving an average of my commission in with my Holiday pay. I know some people on here have said that it should just be your basic salary but you have to remember that most sales jobs have a very low basic salary as they expect you to make up the difference with your commission.
Click to expand...

That says to me' that you will get your salary only.
The amount of work you do doesn't change. Whether you male commission on the work is irrelevant.

What that reads to me is that if your work amount changes, as in the amount of hours you do, then yo get the average of this.

Commision is based on money that you make for the company, why would they pay staff 'commission' while on holiday when they are not making anything from it themselves.
 
Joebob said:
That's brilliant, thanks. Just what I was looking for.

• If a worker’s pay varies with the
amount of work done then the
amount of a week’s pay is the
pay for the normal weekly
working hours multiplied by the
workers average hourly rate over
the preceding 12 weeks. This
may occur under a piece work,
bonus or commission system.

So in a nutshell I should be receiving an average of my commission in with my Holiday pay. I know some people on here have said that it should just be your basic salary but you have to remember that most sales jobs have a very low basic salary as they expect you to make up the difference with your commission.
Click to expand...

from going through this with my employers several years ago it is meant to protect workers who are on for example 17.5 hour pw contract but are regularly doing 25 hours to be entitled to to have their holiday pay made to be the average of 12 weeks. it doesnt take into account bonus and commission just your basic wage. its the same if you are contracted to work sundays which are paid at time and a half but your holiday pay is only time as your not working to receive the supplement

alex
 
telewebby said:
from going through this with my employers several years ago it is meant to protect workers who are on for example 17.5 hour pw contract but are regularly doing 25 hours to be entitled to to have their holiday pay made to be the average of 12 weeks. it doesnt take into account bonus and commission just your basic wage. its the same if you are contracted to work sundays which are paid at time and a half but your holiday pay is only time as your not working to receive the supplement

alex
Click to expand...

So if it doesn't cover commission then why does it state otherwise in that statement I pasted from the ACAS info?
 
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