Ensuring seasonal staff are paid correctly over the Christmas period
As the Christmas period approaches, employers should be aware that all workers, including temporary, seasonal, and short-term staff, are legally entitled to at least the National Minimum Wage (NMW) or National Living Wage (NLW).
While seasonal work roles can be short-term, the same minimum pay rules apply as for permanent staff. This means ensuring that:
- All working time is counted – This would include starting early or staying late to open or close premises, cleaning, travelling time between work locations or completing mandatory training outside of working hours.
- Deductions do not reduce pay below the minimum wage – Costs for uniforms or equipment must not leave employees earning less than the legal minimum.
Current minimum wage rates
The current rates are:
- £12.21 – Age 21 and over (National Living Wage)
- £10.00 – Age 18–20
- £7.55 – Under 18
- £7.55 – Apprentice (under 19, or 19+ in first year)
By law, employees must be paid at least these rates for all hours worked.
Enforcement and consequences
In 2024/25, HM Revenue & Customs (HMRC) identified £5.8 million in arrears due to underpayment affecting 25,200 workers. As a result, 750 penalties totalling £4.2 million have been issued to non-compliant employers.
Penalties can reach up to 200% of the underpayment, in addition to the arrears owed. Employers who fail to comply may also be publicly named and can face prosecution.
Seasonal hiring can increase the risk of inadvertently underpaying staff. If you need any help with your payroll or would like specific advice on paying staff please give us a call. We would be happy to help you!
See: https://www.gov.uk/government/news/working-over-christmas-check-your-pay