For many businesses, particularly those in the hospitality and leisure sector, we are fast approaching the busiest months of the year with the summer season once again nearly upon us. It’s more than likely that you are now starting to look at staffing arrangements for this period, which in some cases, may involve taking on seasonal workers on a casual and/or temporary basis. We, therefore, thought now would be a good time to remind you of your HR obligations when it comes to employing seasonal staff.
Identify your business needs
You will firstly need to identify the level of support your business requires over the upcoming months; this will determine the employment status of your seasonal workers and your legal obligations.
If you need staff to work regular hours for a defined period, then you’re going to need more commitment from them, our advice is to hire them as a temporary employee. Whereas, if you’re anticipating that you will only require extra staff as and when work is available, then it is advisable to engage your seasonal staff as casual workers.
Provide a written statement of terms and conditions.
Regardless of their employment status, they will be entitled to receive a written statement of their terms and conditions of engagement, on, or before their first day of employment/assignment. This document must detail their job role, pay, hours of work, holiday pay, sick pay, duration of the employment/assignment, pension and if they are entitled to any benefits.
Their terms and conditions must specify whether the individual is classed as a casual worker or an employee. We also recommend that if you are taking on a seasonal worker as a temporary employee that you do not give a specific contract end date, you should word the contract in such a way as to allow you to bring employment to an end, if things don’t work out.
Differences between a temporary employee and a casual worker
The key difference between the two employment statuses is that that your workers will not typically be entitled to:
- Minimum notice periods if their employment will be ending.
- Protection against unfair dismissal.
- The right to request flexible working.
- Time off for emergencies.
- Statutory redundancy pay.
Although casual workers will occasionally undertake work for your business, there will be no obligation to offer them work, nor will they be obliged to accept work. Your temporary employees on the other hand, will be obliged to undertake the hours of work set out under their contract of employment and will have employment rights. If you are unclear as to how many hours the employee will be required to work but want commitment that they will work when required, then it is advisable to employ them on a zero-hour basis.
Pay your workers through PAYE.
All seasonal workers, regardless of status, are entitled to receive the National Minimum Wage for work completed. The Company must operate PAYE for all its workers and should note that they may also be entitled to auto-enrolment pension contributions (subject to meeting qualifying criteria).
Holiday Pay Entitlements
In line with the Working Time Regulations, all workers and employees are entitled to 5.6 working weeks paid leave per annum.
If you are engaging seasonal staff and they are going to be working variable hours, then holiday pay can be processed using a rolled-up holiday pay system. This typically means that workers will receive a 12.07% uplift on their hours worked (which equates to 5.6 working weeks per annum) and is paid as they work rather when they are off. If you opt for this system, this should be highlighted in their terms and conditions and the payment shown separately on their payslip.
Sick Pay Entitlements
Workers may be entitled to Statutory Sick Pay subject to their annual earnings if they meet the usual qualifying criteria.
Family leave or related pay
Employees are legally entitled to time off for ante-natal appointments, maternity leave, paternity leave, adoption leave, or associated family leave pay, whereas casual workers are not. That said, employers should be aware that casual workers will still be protected from pregnancy and maternity discrimination.
Discrimination
Whilst your casual workers won’t have the right to claim unfair dismissal, they still have the same rights as employees in relation to protection from discrimination on the grounds of the usual protected characteristics. Workers are also protected against discrimination because of whistleblowing or acting in a situation where their health and safety is in serious and imminent danger.
Employers Liability
Employers may be vicariously liable for the acts and omissions of casual workers as well as employees, so it is imperative for workers to be made aware of Company policies on bullying, harassment and diversity and inclusion.
To read about your Health & Safety obligations click here
For further information, please contact us.