Q: We’ve had an employee raise a question with us about whether commissions would be included in their sick leave rate of pay.

Our payroll is a monthly cycle (annual salary divided by 12 months) and we currently pay the sick leave day based on their normal salary, we do not add commissions to that day. The commission payments are not specific to a relevant day, but more for a period. For example, the commissions we are about to pay in June, are for those earned in the May payroll period. Based on the below, are we required to include commission in their sick leave payment? And if so, how would we calculate that?

A: First point of call is always the employment agreement.  You have stated the commission payment is part of the period and not tied to the day for that reason I do not see this as part of RDP.

For example, Employee goes sick one Thursday in the month, it does not mean commission was earned or paid on that day so would not be part of RDP.

This would change and commission would become part of gross if ADP had to be used.  But you have stated RDP can be defined.