The dispute is centred on whether commission should form part of any holiday pay - an issue that affects most UK travel agents.
It comes as TTG learned that trade unions are aiming to strike a deal with Thomas Cook using the view of the European Court of Justice (ECJ) as leverage.
Both the TSSA, which looks after retail staff, and Unite, which represents airline workers, are seeking to thrash out a negotiated settlement on the matter.
It follows a series of recent court cases, including an ongoing tribunal (Lock v British Gas Trading Ltd), where an employee decided to bring a claim over lost commission during a period of annual leave.
Lock argued that because he was not able to make any sales and therefore generate commission, “this had adverse effects on the salary” he received during the months following his annual leave.
The tribunal referred the matter to the ECJ, which delivered its ruling in May this year, siding with Lock and potentially opening the floodgates for other claims from employees whose wages include commission. The hearing is set to resume later this month at the Leicester Employment Tribunal.
Major implications?
TSSA senior regional organiser Tony Wheeler told TTG: “We’ve contacted the employer [Thomas Cook] pointing out that there is going to be forthcoming changes in legislation. We’ve presented our position to the employer and they’ve responded.
“We’re keen to seek some kind of agreement on payments if they are required under legislation to make them.”
Following the European decision, Unite said it was hopeful Cook would “come to the negotiating table”.
Meanwhile lawyers told TTG the ruling had major implications for anyone working in an industry that pays commission, including travel.
Martin Pratt, a partner at Gordon Dadds, said: “It could mean all holiday in future must contain an element reflecting commission. Furthermore, if the tribunal decides it can interpret the domestic legislation in accordance with the European judgement it could result in to up to 16 years’ worth of back pay claims.”
Matthew Irvine, associate at Thomas Eggar, added: “The ECJ decided that for employees who receive commission as part of their normal monthly pay, if there is an ‘intrinsic link’ between that commission and performance of their tasks, then it should be reflected in the calculation of their holiday pay.”
A spokesperson for Cook said the company “continues to follow the progress of the legislation which hasn’t yet concluded and will engage with the appropriate parties once the outcome is clearer”.
