The last couple of years have seen various legal battles fought over commission and whether it should be taken into account in holiday pay.

With agents often earning considerable amounts of commission, the latest decision is likely to have a wide-ranging impact on the travel sector.

While the inclusion of commission in holiday pay had already been decided in a prior case, the latest judgment provides further clarity on the issue and could persuade those companies that have yet to adjust their holiday pay calculations to do so.

Thomas Cook told TTG it was “aware” of the judgment but added it was “too soon to say how this might impact on our business. Any changes arising will be advised to our employees once we are in a position to do so,” it said.

Martin Pratt, partner at Gordon Dadds, said companies should have already started to include commission in holiday pay since the European Court of Justice delivered its verdict in 2014. “All this has done is really confirm that decision,” he added.

However, Rebecca Thornley-Gibson a partner at asb law, said companies were unlikely to already have implemented the changes.

“I don’t think there are many companies that are currently including commission in the holiday pay calculations at the moment – a lot have been waiting to see what would happen; what the final result would be,” she said.

“I don’t think there are that many who would have paid more than they felt they really had to previously.”

Law firm Addleshaw Goddard agreed the news could prompt employers into action. “This greater level of certainty may encourage some employers who have not yet adjusted holiday pay calculations to consider doing so now.

“Any employer wishing to adjust holiday should take legal advice before doing so, given the uncertainties surrounding the precise method of calculating holiday pay.”

The original case dates back to 2012, when a British Gas salesman took his employer to a tribunal in a claim for unlawful deduction of wages. Agents hoping to submit a slew of backdated claims though are likely to be disappointed.

According to Pratt the government is limiting it to two years and even then it may prove tough to pursue claims. “In reality it’s going to be difficult for anybody to go back that length of time because employment tribunals have a very short limitation period, you have to bring a claim within three month,” he said.

Public sector union Unison, which is supporting the original claimant and 700 other members in a variety of industries, said the latest decision would benefit thousands of workers.

“Until now some employees who rely upon commission and overtime have lost a significant amount of money. It’s only fair that workers should receive their normal pay, including their regular commission, whenever they take their annual leave,” said Unison general secretary Dave Prentis.