In addition to the general considerations before staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are taken on for a new role (see Q&A 1), there are particular considerations to bear in mind when taking people on to replace existing or former staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

These considerations broadly depend upon whether the vacancy was created by resignation, retirement or dismissal, or whether it was created by redundancyWhen a staff member is dismissed because his role is no longer needed.:

1. Created by resignation, retirement or dismissal

   Give serious consideration to whether there is a need to fill the role that has been vacated. Before simply starting the process of replacement, you should think carefully about any ways in which the scope of the role or type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member carrying it out could be changed or eliminated entirely. For example, it could be more cost-effective to outsource elements of the role.

2. Created by redundancyWhen a staff member is dismissed because his role is no longer needed.

   It is important to note that it is the role, not the person, that is made redundant. Therefore, if you hire someone new into a role from which a former staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member has recently been made redundant, it suggests that either the role was not redundant in the first place, or reasonable efforts were not made to seek alternative employment for the redundant staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member within the business, this being a requirement of a proper redundancyWhen a staff member is dismissed because his role is no longer needed. procedure. There is a considerable risk that taking on a new staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member to cover a vacancy created by a redundancyWhen a staff member is dismissed because his role is no longer needed. will be considered unfair to the redundant staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member, and could result in a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878..

   If you rehire a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member into the same role from which they were made redundant (subject to the same terms and conditions as they worked under before) within four weeks of the date of redundancyWhen a staff member is dismissed because his role is no longer needed., you will not have to pay them a redundancy paymentMoney paid to a staff member because he is being made redundant.. For full guidance on redundancyWhen a staff member is dismissed because his role is no longer needed. payments and redundancyWhen a staff member is dismissed because his role is no longer needed. generally, see Deciding to make redundancies.

Once you have decided to take on staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., there are a number of staffing arrangements to consider. The key ones are:

1. EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have significant legal rights, such as entitlement to the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage., paid annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave. and minimum notice periods to terminate employment. In return, you will have overall control over what the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. does and how they do it. Depending on your needs, you can hire:

   1. permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (see Q&A 11 and following);

   2. temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (see Q&A 21 and following);

   3. part-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (see Q&A 41).

2. FreelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors.

   FreelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. are self-employed individuals who do not become a part of your business in the same way that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. do. Instead, you will be their client or customer. You do not have the same administrative responsibilities (for example dealing with tax and national insuranceCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions.) as with an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., nor does a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. have the same legal entitlements as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. eg to paid annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave. or minimum wage.

   For more information, see Q&A 26 and following.

3. Casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers.

   A casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. is a workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. whose contract allows you to offer them work whenever you like, and lets them accept or decline it as they choose. Zero-hour workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. are casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers.. They are free to seek work with other employersA people or businesses hiring one or more staff members. at the same time as working for you. However, casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. must still be given the minimum wage, paid holiday and maternity/paternity payPayment given to a new father, or the partner of a woman who has recently given birth, who takes time off work to care for the child and/or support the woman. (although they are not entitled to maternity/paternity leaveA period of leave from work available to certain staff members in order to care for a new born child or support the child's mother.).

   For more information, see Q&A 31 and following.

4. Agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business.

   Agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. are those hired through a temporary work agency, usually for a short-term vacancy. Although agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. start off with fewer rights than other staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., this changes dramatically after 12 weeks in their role; at this point, they become entitled to the same rights as other comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

   For more information, see Q&A 44 and following.

See Q&A 4 and following for how to decide on the type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member to hire.

When choosing a staffing model for your business, it is helpful to have an idea of the benefits and burdens involved in taking on different types of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

At one end of the scale is a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is fully integrated into your business and over whom you have the maximum amount of control. EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. also have the most rights and are expensive as you are responsible for paying tax, national insuranceCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. etc in addition to their wages, all of which must be paid whether you have work for them to do or not. At the other end of the scale are freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. who are self-employed. You will usually have little to no control over how they go about the work that they are contracted to do for you, and you pay them only for the work that they do, usually on an hourly rate for the time the task takes, or by a fixed fee for the delivery of a project. They take care of their own taxes.

There are different factors to consider depending on your situation and what type of work you need done:

1. if you need staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on a long-term basis, see Q&A 5;

2. if you need to provide cover for absent staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., see Q&A 6;

3. if you need staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to cover adhoc events, see Q&A 7, or for a short specialist task, see Q&A 8;

4. if your business has fluctuating needs, see Q&A 9; and

5. if your business has a limited budget, see Q&A 10.

If you need staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on a long-term basis, you should consider hiring:

1. EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   Provided you are able and willing to make the necessary commitments (both financially and legally), hiring a full or part-time permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will generally be the most appropriate staffing solution for your business. An employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be committed to working for you for the duration of their employment contract and cannot refuse work from you. You must bear in mind, however, that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the greatest amount of rights of any type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member (eg the right to a minimum notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. before being dismissed, rights to holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability. etc) and there are restrictions on when and how you can end an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s contract (eg you must have a fair reason and follow a fair process). See Q&A 11 and following for more guidance on hiring an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.).

2. Self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.

   Your business model may mean that it would be more appropriate for you to use self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on-demand rather than taking on your own employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers.. This may also be because you do not want to commit to the costs and administrative burden of hiring an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. . You must bear in mind however, that if you use self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., you will have less control over how and when the work is done, who does it and you cannot prevent your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member from working for other businesses. See Q&A 26 and following for further guidance about hiring self-employed or freelance staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

3. ApprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.

   Alternatively, you could take on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. if you are prepared to commit to the development of a very junior member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for an extended period (typically between one to five years). You must be comfortable that you have sufficiently experienced staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to support the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.'s learning and development during that period, and note that you may have to give the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. time off work to complete the off-the-job training element of their apprenticeship. That said, taking on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. could be a fairly cost-effective way for your business to develop skills and staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. loyalty in a particular area given that there is government funding available. Bear in mind, however, that although there are some financial incentives to taking on apprentices, they have many of the same rights and requirements as employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg the right to holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.). See Q&A 58 and following for more information about hiring apprentices.

If your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are on leave or have unexpected sickness, you may need some short-term cover to tide you over, rather than recruiting a replacement employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. In such circumstances, you may want to consider hiring:

1. Zero-hours staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.

   You may already have a pool of trained and experienced zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. who you can call upon to cover any unexpected absences by your other staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. Bear in mind however, that zero-hours staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. can refuse work that you offer them on a case by case basis so if you do not have a big enough bank of zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. to call upon, they may not necessarily be available to cover absences at short-notice. See Q&A 31 and following for more information about hiring casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers..

2. Agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business.

   If you have a particularly short-term and immediate need for staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., hiring an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. could be the quickest solution for you. Bear in mind, however, that it can be an expensive way of filling a post as you will need to factor(In finance) A financier who provides finance to a business by buying the business's debts under the terms of a factoring agreement. in the agency's fees. See Q&A 44 and following for more information about hiring agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. .

3. Temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   If you need to cover a more prolonged period of absence (eg an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work.), you could consider hiring a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. In doing so, bear in mind that while you will have more control over employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. than other types of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. (eg zero-hours or agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. ), temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have all the same rights as permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.), together with some additional protections designed to prevent them being disadvantaged by their temporary status (eg the right to be informed of available vacancies in your business). The administrate burden on your business is likely to be highest for temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are therefore less likely to be appropriate if you only need cover for very short periods of time. See Q&A 21 and following for further guidance about taking on temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

If your business runs ad hoc events, you are likely to need staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who are available at short notice. In such circumstances, you could consider hiring:

1. Zero-hours staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.

   You may want to consider training a pool of zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. who you can call upon when you have a special or last minute event to cover (eg if you run a bar which has been booked out for a wedding). Bear in mind, however, that zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. have no obligation to accept offers of work from you so if you do not have a big enough bank of workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. to call upon, it could be difficult to get the cover you need at short notice. See Q&A 31 and following for more information about hiring casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers..

2. Agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business.

   Using agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. could be a quick and easy way for you to get temporary staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to cover an event, particularly if it is at short notice. Bear in mind that this can be more expensive than hiring other staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., as you will need to factor(In finance) A financier who provides finance to a business by buying the business's debts under the terms of a factoring agreement. in agency fees. See Q&A 44 and following for further guidance about hiring agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. .

If you need assistance with a a short-term, specialist task for which you do not have the expertise in-house (eg design work), you should consider hiring:

1. FreelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.

   Hiring a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. is appropriate if you do not need full control over how the work is done or who does it and if you are happy for the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member to work for other businesses. A freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. has far fewer rights against you than other types of workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. and generally their rights will be restricted to those contained in their consultancy agreement with you. See Q&A 26 and following for more information about hiring freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. . If you will need to retain the expertise within your business once the project is complete, however, it may be more suitable for you to hire a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

2. Temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   If you need more control over how and when the work is done, you could consider hiring a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with a specialist skill set rather than a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.. As with a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor., however, a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will not be appropriate if you need to retain the specific skill set in-house once the project is complete, and in such cases you should instead consider hiring a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Bear in mind that temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have all the same rights as permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.), together with some additional protections designed to prevent them being disadvantaged by their temporary status (eg the right to be informed of available vacancies in your business), therefore the administrate burden on your business is likely to be higher than that with a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.. See Q&A 21 and following for further guidance about taking on temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

If your business has unpredictable staffing needs (eg if you experience fluctuating client or customer demand depending on the season), you could consider offering overtime to your permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to encourage them to cover it. However, this may not always be possible (eg if your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are not available for such work) or appropriate (if you need additional staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members during normal working hours). In such cases, it also may not be appropriate for you to hire additional permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. because you have to pay your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. even if there is no work for them to do during quiet periods. There are also restrictions on how and when you can end an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract if you have a sustained period when there is not enough work to justify you keeping on your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. (eg you must have a fair reason and follow a fair process) (see Q&A 16 for more information about employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. rights). The main options you could consider as alternative staffing solutions are:

1. Casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers.

   You could train a bank of casual staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. that you can call on when you want them to work. Offering no guaranteed hours to staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. can help you to build up a trained workforce that you do not need to pay when there is no work, therefore helping you to respond to fluctuations in demand. However, you should bear in mind that casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. will typically not have any obligation to accept any offer of work from you, therefore this staffing option will only be appropriate if you have a large enough bank of casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. to call upon at any one time. See Q&A 31 and following for further guidance about hiring casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers..

2. Annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   If you regularly have peaks in demand during a year, you could employ annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who you can call in to work during busy periods as part of of their annual quota of hours. As employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. have the same rights and requirements as your other employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (see Q&A 16 for more information) but you will be able to build up a skilled workforce that you can use more flexibly than you would be able to with other employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., which can help you to control working patterns. It will also generally be cheaper for your business than taking on full or part-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. provided that you have correctly estimated how many hours you are likely to need the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to work during the year. See Q&A 13 and following for more information about annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

3. Agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business.

   Recruiting temporary staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. through an agency can be a quick and easy way to cover fluctuations in your staffing needs. The agency will be responsible for recruiting the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., which means that there will be less of an administrative burden on your business, but you may find that agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. change frequently, meaning you waste time and money on getting new individuals up to speed. You should also bear in mind that using agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. can be more expensive than hiring other staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., as you need to factor(In finance) A financier who provides finance to a business by buying the business's debts under the terms of a factoring agreement. in agency fees. See Q&A 44 and following for further guidance about hiring agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. .

4. Temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   If your business has seasonal or fixed-term work, it may be appropriate for you to hire a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for the period if you want more control over the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member. For example, you may need the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member to be fully integrated into your business (eg with their own email address and desk) and need them to be able to work for you as and when you need, with no right of refusal. This will only be appropriate where you have enough work to keep the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member busy during their contracted hours, or if you are prepared to pay them even when you have no work for them to do. There are also various administrative burdens and costs associated with taking on employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., eg you will need to set up a payroll system to deduct your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. at source and make National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions.. It is therefore only likely to be worthwhile you taking on a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. if you are able to provide a certain amount of guaranteed work. See Q&A 21 and following for further guidance about hiring temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

5. Self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.

   If your business model means that you have a fluctuating demand for staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to provide non-specialist services (eg delivery driving), it may be appropriate for you to use self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. rather than taking on your own employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. . This model would allow staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to sign up for work on a daily basis, with no obligation on you to offer (and pay for) work if there is none available. You will have fewer responsibilities towards these staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. as they have fewer rights than workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. and employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., but you will also have less control over how the work is done, who does it and you cannot prevent your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member from working for other businesses. For more guidance about hiring self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., see Q&A 27 and following.

If you have a limited budget, it may not be appropriate for you to hire an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. given that you will then be committed to paying their salary and other related administrative costs (eg managing your payroll) even if you have no work for them to do. You will also face restrictions as to when you can end their employment contract (eg you must have a fair reason and follow a fair process). Instead, you could consider hiring one of the following types of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. as you will only need to pay them for work that they actually carry out for you:

1. Self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.

   You will only have to pay self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for the work that they actually do for you, which is likely to either be calculated as a fixed fee per project or a negotiated hourly rate. This means that (unlike employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.) you do not need to pay them when there is no work to be done and they will also generally be less expensive from an administrative perspective, since you will not be responsible for paying income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. or National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. on their behalf and you are not obliged to enrol them into your workplace pension. Bear in mind, however, that hiring self-employed workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. will not be appropriate if you want to retain full control over how the work is done, who does it and you want to prevent your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member from working for other businesses. See Q&A 26 and following for further guidance about hiring self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

2. Casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers.

   Using zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. (a type of casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.) can be a cost-effective option for your business as you will only need to pay for staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. as and when you use them. Bear in mind, however, that zero-hours staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are free to refuse to do work for you on a case by case basis therefore you will need to ensure that you have a sufficiently large bank of trained staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to call upon to ensure that your staffing needs can be met. You will need to invest time and money in recruiting and training your zero-hours staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., and you will also usually need to provide them with any equipment or uniform required (whereas self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. will usually provide their own), which may add some costs. Casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. do also have some important employment rights that self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. do not (eg the right to holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.) and you will have more administrative costs to deal with than you would with self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. (eg you are legally obliged to deduct their income at source through the Pay as You EarnThe system of income tax collection used by employers. Also known as PAYE. (PAYEPay as you earn; the system of income tax collection used by employers.) system). However, by hiring a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., you will have more control over how the work is done and by whom than you would if you used self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. (eg you can set standards in relation to their appearance). See Q&A 31 and following for more information about hiring casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers..

3. ApprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.

   Alternatively, if the work is relatively low skilled you could hire an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. if you are prepared to commit to the development of a very junior member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for an extended period (typically between one to five years). You must also be comfortable that you have sufficiently experienced staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to support the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.'s learning and development during that period, and note that you may have to give the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. time off work to complete the off-the-job training element of their apprenticeship. If so, taking on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. could be a fairly cost-effective way for your business to develop skills in a particular area given that there is government funding available, the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. payable is lower in certain circumstances and you will have to pay limited (or no) National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. if your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. is under 25 years old. Bear in mind however that although there are some financial incentives to taking on apprentices, they have many of the same rights and requirements as employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg the right to holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.). See Q&A 58 and following for more information about hiring apprentices.

You should not take on internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. as a cheap way to supplement your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., as if they are undertakingA promise to do or not do something, commonly contained in a contract. work that you would expect of a paid staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member, they will legally be classed as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. (depending on the details of their involvement in your business) and they may claim the rights associated with those positions (eg they may claim back pay for the minimum wage). See Q&A 54 and following for more information.

Hiring an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will give you the most control that you can have over any type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member, but it will also give you the most responsibilities.

Key things to be aware of are:

1. Employment rights

   An employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has the most legal rights and benefits of any type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. See Q&A 16 for a summary of the rights and benefits employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have.

2. Employment contract

   You must give your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. a written statement of certain basic terms of their employment before or on their first day of employment. During the time they are contracted to work for you, you will be obliged to pay them even if they do not have any work to do. For guidance about employment contracts, see Employment contracts, and for a template you can use, see Employment contract. Note that in some circumstances it may be appropriate to provide the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with an annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. contract; see Q&A 13 and following.

3. National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. and income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income.

   You are legally obliged to deduct your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. at source and pay their income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. contribution through the Pay as You EarnThe system of income tax collection used by employers. Also known as PAYE. (PAYEPay as you earn; the system of income tax collection used by employers.) system. You must also deduct National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. from your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s pay using the PAYEPay as you earn; the system of income tax collection used by employers. system, as well as making your own contributions in relation to each employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. For guidance about how to set up a payroll system to deal with these issues, see Process for paying staff.

4. Pension contributions

   You are very likely to have to enrol your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in a workplace pension schemeA pension scheme operated by an employer for their staff members. and to pay contributions (on top of their wages) towards that pension. Broadly, employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. aged between 22 and state pension ageThe earliest age that a person can start receiving their state pension. It varies depending on when the person were born and whether the person is male or female. To find out state pension age use the government's state pension calculator (https://www.gov.uk/state-pension-age)., and earning more than £10,000 per year are eligible. See Enrolling staff into a pension scheme for full details.

5. Health and safety

   You are responsible for taking care of your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' health and safety at work. Failure to comply with health and safety law can result in criminal liability for your business and any directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager or officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches. responsible. You will typically need to have employersA people or businesses hiring one or more staff members.’ liability insurance with a minimum of £5 million cover. Guidance on how to comply with your health and safety obligations can be chiefly found in Health and safety policy, Health and safety training for staff and Health and safety risk assessments.

An annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on an employment contract that specifies the number of hours that they are required to work over the course of a year (rather than on a weekly basis). There can be flexibility over when those hours are worked. For example, you might commit to giving a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member 1820 hours works over the course of a year (averaging out at 35 hours per week). Although you then have to meet the contractual target by the end of the year, you could choose to give them shorter hours during off-peak times, and longer ones when demand for your services is higher.

Note that staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. contracts are classified as employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for the purposes of employment law, therefore they have all the rights and entitlements of other employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg the right to the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. and to holiday payPayment made by an employer to a worker during the worker's holiday time off work.) so you will also have the increased administrative burden that comes with an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. eg of dealing with the payroll. See Q&A 12 for more information about hiring employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and Q&A 16 for full guidance about employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. rights. You should also bear in mind that annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. are a form of flexible workingA working arrangement which is different to the normal working pattern. For example, it might involve working fewer or different hours, or working from home on certain days. , therefore your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the right to request an annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. contract once they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for at least 26 weeks. See Managing flexible working arrangements for more information.

This depends on what the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract says about their hours. For example, it might provide for payment of a standard salary on a monthly basis regardless of whether they work more or fewer hours than average in that month. If the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has not worked their full quota by the end of the year, you will not be able to claim any wages back unless their contract says you can. It is therefore particularly important that you keep track of how many hours any annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are working and ensure that you estimate your annual staffing needs as accurately as possible.

See Employment contract for a template employment contract you can use for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

An annualised hoursA flexible employment arrangement whereby the employee works a set number of hours over the entire year, distributed according to business need. arrangement is commonly used in shift working arrangements, but could be applied to any staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member. It can help you to build up a trained, skilled and dedicated workforce over whom you have a large amount of control (eg over where and how they carry out their work), but you can use them more flexibly to meet anticipated fluctuations in your staffing needs over the course of a year.

EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the most legal rights and benefits of any type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. The main rights employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have that you must be aware of are:

1. Pay protections; see Q&A 17 for information.

2. Rights to paid and unpaid time off work; see Q&A 18 for information.

3. Rights regarding hours of work and work patterns; see Q&A 19 for information.

4. Protections when you are trying to end an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s contract; see Q&A 20 for information.

5. Rights to equal treatment/non-discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.. In particular:

   1. not to be discriminated against on the grounds of age, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation;

   2. if they are disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., to reasonable adjustments to enable them to do their job or to help them return to work. For example, if your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. due to a back problem this could include providing them with an adjustable desk (for more information about making reasonable adjustments see Long-term sickness absence and disability);

   3. not to be treated unfavourably or be dismissed for whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered.; and

   4. for part-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., the right not to be treated less favourably than full-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in comparable roles (see Q&A 41 for guidance).

An employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has the right to receive a statement of certain terms and conditions, which you will need to provide all new employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with before or on their first day of employment . See Employment contracts for further information and Employment contract for a template you can use.

It is up to you how much you pay your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., but you must bear in mind that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the right to:

1. the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. (see Staff pay);

2. be paid equal pay for doing equal work as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. of the opposite sex (see Staff pay);

3. protection from unlawful wage deductions (broadly, if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has not agreed to the deduction and it is not an otherwise legally permitted deduction, eg income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. or pension contributions; see Staff pay); and

4. automatic enrolment for qualifying employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. into a workplace pension (see Choosing and setting up a staff pension scheme for more information).

You are legally required to provide every employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with a written statement of their basic terms of employment (including their pay) before or on their first day of employment . See Employment contracts for more information and Employment contract for a template you can use.

Almost all employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the right to:

1. paid holiday (see Dealing with annual leave for full information);

2. statutory sick payA sum of money that certain members of staff are entitled to if they cannot work because of sickness. (see Payment during sickness absence for full information);

3. maternity pay and leave (see Maternity leave and pay), paternity payPayment given to a new father, or the partner of a woman who has recently given birth, who takes time off work to care for the child and/or support the woman. and leave (see Paternity leave and pay), adoption payThe money which must be paid to a person taking time off work after having adopted a child. and leave (see Adoption leave and pay), shared parental payThe money which must be paid to a person taking parental leave. and leave (see Shared parental leave and pay) and time off to attend antenatal appointments or to accompany a partner to such appointments (see Pregnant staff);

4. parental leaveA period of leave from work available to employees with children under the age of 18, in order to allow them to care for their children. and unpaid time off in an emergency involving their dependants (see Parental leave and Time off for medical appointments and emergencies);

5. parental bereavement leaveA period of leave from work available to employees following the loss of a child under 18, or a stillbirth after 24 weeks of pregnancy. This right may also be referred to as 'Jack's Law'. and pay following the loss of a child under 18, or a stillbirth after 24 weeks of pregnancy (see Bereavement leave); and

6. time off for jury service, other public duties and trade union activities (see Time off for jury service, public duties and trade union activities).

It is up to you what hours you require your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to work, but you must bear in mind that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the right to:

1. not work more than 48 hours a week and to have daily and weekly rest breaks (for further information see Rules about working hours); and

2. request flexible workingA working arrangement which is different to the normal working pattern. For example, it might involve working fewer or different hours, or working from home on certain days. once they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for at least 26 weeks (see Flexible working requests for more information).

You are legally required to provide every employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with a written statement of their basic terms of employment (including their hours) before or on their first day of employment. See Employment contracts for more information and Employment contract for a template you can use.

NOTE: Following the introduction of the Employment Rights Bill to Parliament on 10 October 2024, this area of law is being considered for reform (see our blog explaining the Bill here). Any reforms are unlikely to take effect before 2026. The Bill proposes further rights from day one of employment, including protection from unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. (currently available only after two years of service).

It is generally more difficult to fire employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. than other types of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. because they are entitled to certain protections when you try to end their contract.

These are as follows:

1. EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for at least two years have the right not to be unfairly dismissedWhen an employee is dismissed without good reason or without following the proper procedure.. This means that if you want to fire an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has more than two years' service, you must have an appropriate reason (eg misconductUnacceptable or improper behaviour or redundancyWhen a staff member is dismissed because his role is no longer needed.) and follow a fair process otherwise you could face an unfair dismissal claimA legal claim brought by an employee who has been dismissed without good reason or without following the proper procedure.. In a redundancyWhen a staff member is dismissed because his role is no longer needed. situation, you are likely to have to pay them a redundancy paymentMoney paid to a staff member because he is being made redundant. if you let them go.

2. All employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., regardless of how long they have worked for you, have the right not to be dismissed for certain reasons. These include reasons that amount to discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.,as a response to the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. trying to assert their rights, or as a result of the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered.).

3. In most cases, employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the right to a minimum notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. before you dismiss them; how long depends on how long you have employed them.

See Process for dismissing an employee for further guidance and Dismissal letter for a template letter you can use to dismiss a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for misconductUnacceptable or improper behaviour, capability or ill health.

You should consider hiring a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. if you want the securityAlso known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. and high level of control you get over an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., but you only need someone to work for a limited period of time. This could be, for example, if you need cover for an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who will be absent for a period of time (eg due to maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work.) or if the work is seasonal in nature.

You should consider hiring a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member as a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. when all or any of the following apply:

1. you want to be able to control when, where and how that staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member must carry out their work and to be able to set the hours they must work;

2. you need that specific staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member and them alone to do the work that your business requires and they will not have the right in their contract to provide a substitute to do the job if they are unavailable;

3. the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member will be fully integrated into your business (eg they will have their own email address, own desk and be able to use your disciplinary and grievanceA concern, problem or complaint which a member of staff raises with his employer. processes);

4. the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member will not be entitled to refuse work from you;

5. you anticipate having enough work to keep the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member busy during their contracted hours, or you are prepared to pay the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member a regular wage even if you have no work to give them; and/or

6. you want to stop the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member from taking on other work (you will not typically need or want to do this if they are part-time, as they may of course have another job).

For a template contract you can use to hire a temporary member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., see Employment contract.

You must be aware that while you will have much more control over employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. than other types of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., the other side of this is that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the most legal rights and benefits of all staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. It is typically more time consuming and a bigger administrative burden to take on an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. than eg an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. for short periods (see Q&A 44 and following for guidance). If it is not important to you that a particular person does the job, contracting with an agency to provide suitable temporary cover may be more efficient.

If you are hiring an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on a temporary contract key things to be aware of are:

1. Employment rights

   An employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has the most legal rights and benefits of any type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. Hiring an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on a fixed term or temporary contract does not reduce these rights. See Q&A 23 for a summary of the rights and benefits temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have.

2. Employment contract

   You must give your temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. a written statement of certain basic terms of their employment before or on their first day of employment. The employment contract must, most importantly, say when it will end, whether this will be on a certain date or when a certain event happens, or does not happen (eg the completion of a specific project they were hired for, or the return to work of a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work.). For guidance about such contracts see Employment contracts, and for a template you can use, see Employment contract.

3. National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. and income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income.

   You are legally obliged to deduct your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. at source and pay their income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. contribution through the Pay as You EarnThe system of income tax collection used by employers. Also known as PAYE. (PAYEPay as you earn; the system of income tax collection used by employers.) system. You must also deduct National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. from your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s pay using the PAYEPay as you earn; the system of income tax collection used by employers. system, as well as making your own contributions in relation to each employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. For guidance about how to set up a payroll system to deal with these issues, see Process for paying staff.

4. Pension contributions

   You are very likely to have to enrol your temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in a workplace pension schemeA pension scheme operated by an employer for their staff members. and to pay contributions (on top of their wages) towards that pension. Broadly, employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. aged between 22 and state pension ageThe earliest age that a person can start receiving their state pension. It varies depending on when the person were born and whether the person is male or female. To find out state pension age use the government's state pension calculator (https://www.gov.uk/state-pension-age)., and earning more than £10,000 per year are eligible. See Choosing and setting up a staff pension scheme for full details.

5. Health and safety

   You are responsible for taking care of your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' health and safety at work. Failure to comply with health and safety law can result in criminal liability for your business and any directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager or officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches. responsible. You will typically need to have employersA people or businesses hiring one or more staff members.’ liability insurance with a minimum of £5 million cover. Guidance on how to comply with your health and safety obligations can be chiefly found in Health and safety policy, Health and safety training for staff and Health and safety risk assessments.

Temporary employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have all of the same rights as your permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.; see Q&A 16 and following for a full list.

They also have some additional rights, designed to prevent them being disadvantaged by their temporary status. These are as follows:

1. Except in very limited circumstances, you must give your temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. the same pay or benefits that full-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. get, just pro-rated for how long they will be with you. See Q&A 24 for information.

2. Before your temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract ends, you must follow a fair process, including telling them about any vacancies in your business. See Ending contracts with fixed-term/temporary employees for more information.

3. You must not select a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for redundancyWhen a staff member is dismissed because his role is no longer needed. just because they are a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. unless you can objectively justify doing so. Note that the act of not renewing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s temporary contract can amount to making them redundant and make you liable for a redundancy paymentMoney paid to a staff member because he is being made redundant.. See Ending contracts with fixed-term/temporary employees for further information.

4. If you keep a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on for more than four years they will automatically become your permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. unless you have a real business reason for why they should remain as a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg if they are needed as temporary cover for various absent staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on an ongoing basis – most likely in a large workforce).

No; except in very limited circumstances, you must give your temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. the same pay or benefits that full-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. get, just pro-rated for how long they will be with you. This means that you must not give them a less favourable contract simply because they are on a temporary contract, unless the overall package you are offering them is at least of the same value as what you are offering to full-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., otherwise you may face a claim for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

You can only give your temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. less favourable terms if you have a real business need to do so and you have balanced that need against the impact on the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. before deciding to treat them differently. In such a case, it is usually advisable to provide a payment to the affected employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to ensure your temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s overall package is of the same value as your comparable permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. This will reduce the risk of them raising allegations that you have treated them unfairly and, if they were to bring a claim, will put you in a good position to defend it.

Example: Your temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is on a four-month contract. A comparable permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has a companyA private company limited by shares incorporated and registered in England and Wales. car. The cost of providing this for four months is disproportionate. It is sensible to ensure their overall package is at least the same value by providing a financial payment or other benefit to reflect this difference.

No. Ending a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract (without renewing it) will usually amount to a dismissal for the purposes of employment law, even if you are ending the contract simply because its fixed term has expired. This means that you could risk claims for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. if you do not follow the correct process when ending the contract. You could also face claims for breach of contractFailing to keep to the terms of a contract by doing something which is forbidden or failing to do something which is required under the contract. if you fail to take into account any provisions set out in the contract (eg a requirement to give a certain amount of notice of termination).

See Process for dismissing an employee for more information.

Key things to know when you are taking on a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. are:

1. FreelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. ' rights

   As a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. is in business for themselves, they will usually have no automatic rights; their rights are limited to those granted to them in any contract between you. It is only if your agreement with the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. requires them to personally carry out whatever the work is, that they may become entitled to some additional rights. See Q&A 28 for further information about this.

2. FreelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.'s contract

   You should engage your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. on a consultancy agreement; see Contracts for freelancers for further information and Consultancy agreement for a template you can use.

   Beware that, irrespective of what your contract says, your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. may be able to claim that they are really a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. or even an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and entitled to the rights that the status brings, eg the right to paid holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.. This is a particular risk if you try to use freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. as the core staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. of your business rather than for one-off tasks (as is a standard business model in the gig economy). See Q&A 30 for more information about how to reduce this risk.

3. Cost

   FreelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. will generally be less expensive and time consuming to get started and to manage from an administrative perspective compared to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. They typically register as being self-employed for tax purposes; this means that you will not need to take on the administrative burden of paying tax or National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. on their behalf, as you must do with employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. You will also not be obliged to enrol them in a workplace pension as you are with most employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

4. Health and safety and insurance

   Although your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. will be running their own business, you must still ensure that you do not expose them to any health and safety risk and that your premises are safe from a health and safety perspective (see eg Providing a safe and healthy workplace and Reducing health and safety risks). Failure to comply with health and safety law can result in criminal liability for your business and any directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager or officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches. responsible. You do not need to take out employers' liability insuranceInsurance which covers illness and injuries suffered by employees during the course of their work. to cover a self-employed freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor..

5. Liability

   You will not normally be liable if your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. causes harm to a third partyA person who is not directly involved in an existing relationship, transaction or dispute; for example, someone who is not a named party in a contract. when they are carrying out duties for you. This is because you will not typically control what your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. does or how they do it.

   The more control you exercise over how a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. works and the more integrated into your business they are, the more likely you are to be liable eg in the event of their negligenceFailure to exercise the care that a reasonable person would in the circumstances. Intention is irrelevant. on the job.

Generally, if a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. does not have to personally perform the agreed work for you (ie they are free to instruct someone else to do it) then they will not have any rights other than the rights contained in the contract with you. For a template contract you can use, see Consultancy agreement, which can be adapted for a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. who is providing services as an individual or through a personal services companyA private company limited by shares incorporated and registered in England and Wales. .

If the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. does have to personally do the work for you under the terms of your agreement, then in addition to the rights in your contract, they may have the following rights:

1. The right not to be harassed, victimised or discriminated against

   DiscriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. covers grounds of age, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation; and

2. The right, if they are disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., for reasonable adjustments to be made to enable them to continue working for you or return to work

   This includes making reasonable changes to your physical working areas, policies or procedures or providing auxiliary aids, where needed, for disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members. This might be, for example, providing an adapted keyboard for someone who has arthritis (for more information about reasonable adjustments and when to make them, see Health and safety facilities for people with disabilities and Risks to disabled staff).

Yes, and it can be useful to staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. your business using a majority of self-employed or freelance staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., for example, if your business model requires flexible access to a pool of workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. .

However, if this is your chosen staffing model, you must be careful to set it up properly in the first place and always treat these staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. as independent rather than under your control. If you do not, you risk them later claiming entitlements as if they are employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. within your business, rather than freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. operating outside it (eg for unpaid annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave.). You could also face claims from HMRCHis Majesty’s Revenue and Customs. The government authority which oversees tax and customs. for back-dated national insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions.. The risk of this happening is particularly high if you use freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. or self-employed staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. as the core staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. of your business (rather than using them for one-off tasks). See Q&A 30 for information about how to minimise this risk.

For more information about when you should consider hiring a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor., see Q&A 26.

To minimise the risk of self-employed or freelance staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. bringing legal challenges to claim they are employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., ensure that you:

1. Use an appropriate contract

   You should use a consultancy agreement wherever it is appropriate to do so, but bear in mind that a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. may want to work under their own standard terms, which you will need to review carefully before signing. The agreement should make it clear that the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. or self-employed and must not provide them with any rights that casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. or employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are entitled to (eg holiday payPayment made by an employer to a worker during the worker's holiday time off work.). You should avoid placing the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. under a contractual obligation to perform the work personally, as this could imply casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. or employe status. The contract may state that they may appoint a reliable substitute to carry out the work if they wish. For more information see Contracts for freelancers and for a template contract you can use, see Consultancy agreement.

2. Do not treat freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. like they are employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   If you treat your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. like an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., it is much more likely that they will be legally considered to be one, no matter what their contract says. Various factors will be relevant, including how much control you exercise over the way in which the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.'s services are performed. Consider the following actions:

   1. do not tell them that they cannot work for any other business. FreelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. or self-employed individuals are businesses in their own right and should be free to work for other businesses provided that it does not conflict with the services that they have agreed to provide to you;

   2. avoid subjecting them to your disciplinary and grievanceA concern, problem or complaint which a member of staff raises with his employer. procedures as you would your other workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. and employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.;

   3. avoid integrating them into your organisation as you would an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg by providing uniforms, badges or equipment and tools) and do not market them as being an integrated part of your business; and

   4. pay them a commission or lump sum by job where appropriate rather than paying them by way of a regular wage or salary.

The key things to know when you are taking on casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. are as follows:

1. Employment rights

   A casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. has fewer rights than an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., for example, they do not have the right to a minimum notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. (other than what is contained in their contract with you) or the right to claim unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878.. However, they still have some important employment rights that you must be aware of eg the right to paid holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability. (see Q&A 33 for full guidance).

2. Control

   You can exercise a reasonable amount of control over a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.'s work in comparison to freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. . This is because a workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. cannot usually send someone in their place to do the job. You can also control how a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. does any work that you allocate them (eg you can require them to do their work in a certain way and at a particular location, or set standards in relation to their appearance). Note that because of this, you will typically be liable if they cause harm to a third partyA person who is not directly involved in an existing relationship, transaction or dispute; for example, someone who is not a named party in a contract. when carrying out duties for you. For example, if they drop a delivery on someone's toes when they are working for you, you are likely to be responsible for this.

3. Contract

   You should engage a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. using a specific casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. contract, which must make their status clear (as a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. and not an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.) and everything in the contract must be consistent with this. You must provide all new casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. with a written statement of certain basic terms of their engagement before or on their first day of employment by you. For further guidance see Contracts for casual workers and for a template you can use, see Contract - casual worker.

   Crucially, after you have hired a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., you must ensure that you treat them in a way that is consistent with their contract. If you start to treat them like an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. instead, you risk making them one, with all the enhanced rights that entails. See Q&A 39 for information about how to reduce this risk.

4. Zero-hours contracts

   If you make no promises about offering a minimum amount of work to a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. (eg per month or week), it will be a zero-hours contract, which gives the workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. certain rights; see Q&A 37 for further information.

5. National InsuranceCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions., income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. and pension

   You are legally obliged to deduct your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.'s income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. at source and pay their income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. contribution through the Pay as You EarnThe system of income tax collection used by employers. Also known as PAYE. (PAYEPay as you earn; the system of income tax collection used by employers.) system. You must also deduct National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. from their pay using the PAYEPay as you earn; the system of income tax collection used by employers. system, as well as making your own contributions in relation to each employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and most casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. have a right to be enrolled in your workplace pension. For guidance about how to set up a payroll system to deal with these issues, see Process for paying staff.

6. Health and safety and insurance

   You will be responsible for the health and safety of your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. at work. Failure to comply with health and safety law can result in criminal liability for your business and any directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager or officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches. responsible. You will typically need to take out employersA people or businesses hiring one or more staff members.’ liability insurance with a minimum of £5 million cover if you hire such staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. For further guidance on your health and safety duties see Providing a safe and healthy workplace, Health and safety training for staff and Health and safety policy).

The main rights and benefits you must provide to your casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. include:

1. The right to work for other businesses if they are on a zero-hours contract; see Q&A 37.

2. Pay protections; see Q&A 34.

3. In most situations, paid holiday (see Dealing with annual leave for more information), statutory sick payA sum of money that certain members of staff are entitled to if they cannot work because of sickness. (see Payment during sickness absence for more information) and statutory maternity/paternity/parental bereavement pay (although they are not entitled to maternity/paternity/parental bereavement leaveA period of leave from work available to employees following the loss of a child under 18, or a stillbirth after 24 weeks of pregnancy. This right may also be referred to as 'Jack's Law'. ) (see Maternity leave and pay and Paternity leave and pay and Bereavement leave).

4. The right not to work more than 48 hours a week and to have daily and weekly rest breaks (for further information see Rules about working hours).

5. Rights to equal treatment/non-discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.; in particular:

   1. not to be discriminated against on the grounds of age, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., sex, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, or sexual orientation;

   2. if they are disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., to reasonable adjustments being made to accommodate them;

   3. if they work part-time hours, not to be treated less favourably than staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who work full-time hours in comparable casual staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. roles (see Q&A 41 for guidance); and

   4. not to be treated unfavourably for whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered..

All casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. will have the right to receive a written statement of certain basic terms of their engagement before or on their first day of employment by you. For further guidance see Contracts for casual workers and for a template you can use, see Contract - casual worker.

This is up to you and must be set out in your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.'s contract, but you must bear in mind that casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. have the right to:

1. the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. (see Staff pay);

2. protection from unlawful wage deductions (broadly, if the casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. has not agreed to the deduction and it is not an otherwise legally permitted deduction such as income taxTax deductible on an individual's income. Not all income is taxable, as individuals have an annual personal allowance which is the amount they are allowed to earn before they are eligible to be taxed, and they may also benefit from other allowances and relief. The amount left is referred to as taxable income. or pension contributions; see Staff pay); and

3. automatic enrolment for qualifying individuals into a workplace pension (see Choosing and setting up a staff pension scheme for more information).

You are legally required to provide every casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. with a written statement of their basic terms of engagement (including their pay) before or on their first day of employment. For further guidance see Contracts for casual workers and for a template contract you can use, see Contract - casual worker.

Yes, almost all casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. have the right to paid holiday or rolled-up holiday payPayment made by an employer to a worker during the worker's holiday time off work. (see Dealing with annual leave for more information) and statutory sick payA sum of money that certain members of staff are entitled to if they cannot work because of sickness. (see Payment during sickness absence for more information).

You are legally required to provide every casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. with a written statement of their basic terms of engagement (including their holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.) before or on their first day of employment. For further guidance see Contracts for casual workers and for a template contract you can use, see Contract - casual worker.

Yes. A casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. has the right not to work more than 48 hours a week and to have daily and weekly rest breaks; for further information see Rules about working hours.

You are legally required to provide every casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. with a written statement of their basic terms of engagement (including their hours of work) before or on their first day of employment. For further guidance see Contracts for casual workers and for a template contract you can use, see Contract - casual worker.

NOTE: Following the introduction of the Employment Rights Bill to Parliament on 10 October 2024, this area of law is being considered for reform (see our blog explaining the Bill here). Any reforms are unlikely to take effect before 2026. Under the Employment Rights Bill, workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. on low and zero-hours contracts would have the right to a guaranteed hours contract if they work regular hours over a defined period. Eligible workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. would also have the right to reasonable notice of shifts as well as a right to payment for any qualifying shift that is cancelled, moved or shortened.

A zero-hours contract is one in which you make no promises about offering a minimum amount of work to a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. (eg per month or week). In this situation you must not try to stop your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member from working for another business, whether by writing it into their contract or insisting more informally that they only work for you. If you do try to limit them, they are legally entitled to ignore you, and may try to sue you for infringing their rights.

You should be aware that zero-hours contracts have come under significant scrutiny in recent years and some companiesPrivate companies limited by shares incorporated and registered in England and Wales. have faced a backlash for using this model. As such, this is an area that could be subject to change in the near future.

For a template zero-hour contract you can use, see Contract - casual worker.

Yes, and in certain circumstances it may be useful for you to staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. your business with workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. on zero-hours contracts so that you are not obliged to provide any minimum working hours (for example, if you have fluctuating needs or a limited budget).

However, you must be careful in the way you set up and run this kind of staffing model to ensure the status of your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. as casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. is clear, and minimise the risk of your zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. later claiming entitlements as if they were your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., particularly if you be staffing your business using only zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. ; see Q&A 39 for more information. Be aware that some businesses using zero-hours workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. have been criticised for using them to bypass their employment law obligations and the government has warned against using them as an alternative to proper business planning. The law around zero-hours contracts may therefore be subject to change.

See Q&A 31 for further guidance about when you should consider hiring a zero-hours or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker..

While casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. have more rights than self-employed or freelance staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. (eg the right to receive the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. and holiday payPayment made by an employer to a worker during the worker's holiday time off work.), they have significantly fewer rights than full or part-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg they have no right to a minimum notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. or to claim unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878.; see Q&A 33 for more guidance).

To avoid the risk of legal action by casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. claiming employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. rights, you should ensure that you do the following:

1. engage a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. using a specific casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. contract, which must make their status clear (as a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. and not an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.) and everything in the contract must be consistent with this. Note that you are legally required to provide every casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. with a written statement of their basic terms of engagement (including their hours of work) before or on their first day of employment. For further guidance see Contracts for casual workers and a template you can use, see Contract - casual worker; and

2. you must ensure that you treat your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. in a way that is consistent with their contract. If you treat them like an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., it is much more likely that they will be legally considered to be one, no matter what their contract says. Consider the following actions:

   1. do not insist that your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. only works for you;

   2. do not punish your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. in any way if they do not accept the hours that they are offered;

   3. avoid fully integrating your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. into your business wherever possible (eg you could avoid giving them their own designated desk, direct dial or email address);

   4. only subject your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. to your grievanceA concern, problem or complaint which a member of staff raises with his employer. and disciplinary processes to the extent that it is appropriate to do so. For example, casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. have the right not to be discriminated against and will need access to your grievanceA concern, problem or complaint which a member of staff raises with his employer. processes in that context, and they have the right to be accompanied to a disciplinary hearing so you should permit this. On the other hand, you do not need to have a fair reason and follow a fair process if you want to dismiss them as the right not to be unfairly dismissedWhen an employee is dismissed without good reason or without following the proper procedure. does not extend to them; and

   5. avoid giving casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. benefits that you would provide to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg the right to paternity leaveA period of leave from work available to certain staff members in order to care for a new born child or support the child's mother.).

Yes; you will typically have the same responsibilities towards friends and family who work for you as you would with any equivalent staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member.

For example, if you hire a friend as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. they will have all the rights that any other employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. would have eg to minimum wage, holiday payPayment made by an employer to a worker during the worker's holiday time off work. etc. The only difference is that you do not need to have employersA people or businesses hiring one or more staff members.’ liability insurance if all of your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are close relatives (ie your spouse, parents or step-parents, grandparents, children or step-children, grandchildren, siblings or half-siblings). See Q&A 16 for guidance on the rights that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have.

Bear in mind that while it can be easier to hire someone you know rather than hiring someone at arm's length, having a pre-existing relationship with your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member can sometimes make them more difficult to manage. For this reason, consider hiring them on a short-term basis to begin with so that you can trial working together. It is best to formalise your relationship so you can be clear on your rights and responsibilities. You can use a casual contract for this purpose which makes clear you do not need to provide a minimum amount of work and so will allow you to stop providing work to the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member at any given point. For a contract which you can use in this situation see Contract - casual worker.

No; if you treat your part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. less favourably than your comparable full-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., you could face a discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claim. This means your part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. should get the same pay or benefits that full-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who do a comparable job get, pro-rated to reflect the number of hours they work. For example, if you pay your full-time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in a particular role £25,000 per annum for five days work per week and you have a part-time employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in the same role who works three days per week, you must pay them a pro-rated equivalent of £15,000 per annum.

Two roles are comparable (and therefore those two staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members must be treated equally) if they:

1. work for you on the same type of contract (except for their hours);

2. do the same or similar work;

3. are based at the same location (or at another of your locations if there are no comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. where they work); and

4. have a similar level of qualification, skills and experience.

Note that you do not have to pay staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. equivalent salaries to staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who are on different types of contract, so you would not have to pay a part-time casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. an equivalent salary to a full-time employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

Note that, in some very limited circumstances, you may be justified in treating full-time and part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. differently; see Q&A 43.

You can theoretically treat your part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member less favourably than comparable full-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. if you have a real business need to treat them differently and you have balanced that business need against the impact on the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member before deciding to treat them differently. However, even if you can show your reasoning behind this, your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member may still claim that you have discriminated against them. Issues can arise when a benefit you provide to full-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. cannot be pro-rated eg a companyA private company limited by shares incorporated and registered in England and Wales. car. You can of course provide the whole benefit to both part-time and full-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., or alternatively give the part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member an equivalent financial payment. Alternatively, you could offer to fund the pro-rated proportion of the benefit for the part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member with them funding the rest. This will reduce the risk of them raising allegations that you have treated them unfairly and, if they were to bring a claim, will put you in a good position to defend it.

Example: If a full-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member receives a companyA private company limited by shares incorporated and registered in England and Wales. car but the costs of providing this for part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is disproportionate, you could make a pro-rated payment. Alternatively, two part-time staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members could shareA share in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. a car.

Key things to be aware of when taking on agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. are:

1. Agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. ' rights

   Unlike employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. do not have the right to minimum notice periods or the right to claim unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. against you. However, although agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. are a flexible resource and typically only hired for short periods of time, they are automatically entitled to a significant amount of legal rights and benefits (eg paid holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.). Those rights usually increase significantly after the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. has been in-post for 12 weeks. Normally, your contract will be with the agency to fill a post, rather than with the agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. who are sent, so many of the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. 's rights will be the responsibility of the agency. See Q&A 46 and following for further information.

2. Agency agreement

   You will need to hire an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. through a temporary work agency. You will typically have an agreement with the agency (normally under its standard terms of business) and the agency will in turn have an agreement with the agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. member. For guidance on what you need to know when you are considering an agency's terms of business see Contracts with agencies providing temporary staff.

   Be aware that if you subsequently hire someone directly who previously worked for you as an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. , re-engage them through a difference agency, or introduce them to another business which goes on to hire them directly, you may be liable to pay a fee to the agency.

3. Health and safety and insurance

   You will have health and safety obligations towards agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. . For example, you need to ensure that the premises your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are working in and the equipment your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are using are safe and that you have trained your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on how to safely use that equipment. You will also need to have a health and safety policy in place. Failure to comply with health and safety law can result in criminal liability for your companyA private company limited by shares incorporated and registered in England and Wales. and any directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager or officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches. responsible. For further guidance see Providing a safe and healthy workplace and Employers' liability insurance.

   You will not need to take out employers' liability insuranceInsurance which covers illness and injuries suffered by employees during the course of their work. if it is the agency that employs the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. rather than you directly.

4. Liability

   You can be liable for the actions of an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. if you are in control of both the work they are doing and the method of performing it. For example, you would be liable for a securityAlso known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. guard who punches someone in the course of their job if you exercised extensive control over what they did and how they went about it. Note that simply supervising someone's work is not enough control to make you liable if something goes wrong, especially if the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is carrying out a skilled job.

Even though agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. tend to only be hired for short periods at a time, they are automatically entitled to a wide range of rights and benefits. You are responsible for some of their rights and some are the concern of the agency that sent them:

1. For information about rights you are responsible for as soon as the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. starts working for you, see Q&A 47. If you do not comply with your obligations, you could face an Employment TribunalA tribunal that deals solely with employment disputes. claim from the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. .

2. For information about rights that the agency is usually responsible for, such as holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability., see Q&A 48.

3. An agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. 's rights increase after they have worked in the same role for your business for at least 12 continuous weeks, which are known as Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role. Some of these are your responsibility and some are the agency's. For guidance on Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role see Q&A 49.

An agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is entitled to basic workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. 's rights from day one, although these are usually the responsibility of the agency rather than you; see Q&A 48 for information.

In addition, as soon as an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. starts work, your business must do the following. If you do not, you could face an Employment TribunalA tribunal that deals solely with employment disputes. claim from the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. .

1. You must give access to facilities open to comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.

   Unless you have a good business reason for treating agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. differently, you must give your agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. access to all the same facilities, such as a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. canteen or childcare facilities, which are available to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. doing the same or similar role to them at the same location (or if there are no comparable employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. then workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. in a comparable role). If there is no comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member at the same location as the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is working, you should ensure they have access to the same facilities as a comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member working for you at a different location.

   Even if you do have a good business reason for not offering agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. use of facilities, for example if it is difficult to give your agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. full access to these facilities from a practical point of view, consider offering such staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. partial access if possible, instead of excluding them altogether.

2. You must tell them about job vacancies

   You must ensure that your agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. members are told about any vacant posts within your business so that they have the same opportunities to find permanent work within your business as other staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who are currently working for you in the same or a similar role at the same location. You can do this by posting a notice on a notice board, providing that you ensure your agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. know where to find this information. Note that this does not mean that agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. members have the right to be able to apply for job vacancies on the same terms as your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

3. You must not discriminate To treat someone differently directly or indirectly becasue of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.against them

   You must not harass, victimise or discriminate To treat someone differently directly or indirectly becasue of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.against an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. on the grounds of sex, age, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief or sexual orientation;

4. You must make reasonable adjustments for them if they are disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities.

5. If an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is a whistleblowerAn individual who discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered., you must not treat them unfavourably

   For example, your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. raises a concern that your business is breaching The act of violating a legal or moral obligation.its health and safety obligations by not training staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. properly to work in your warehouse. The supervisor holds a grudge and stops selecting them for overtime. Your business has treated them unfairly and they could bring a whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered. claim in the Employment TribunalA tribunal that deals solely with employment disputes..

You have further obligations once the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. has been with you for 12 weeks or more; see Q&A 49.

Yes. Agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. must be accorded basic workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. ' rights from day one. Usually most, or all, of the rights detailed below are the responsibility of the agency under your agreement with them. You should check your contract with the agency if in doubt:

1. If you set the pay of the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. , provided they qualify, you must give them at least the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage., holiday payPayment made by an employer to a worker during the worker's holiday time off work.; statutory sick payA sum of money that certain members of staff are entitled to if they cannot work because of sickness. and statutory family related pay (eg maternity, paternity etc). You must not make unlawful wage deductions from their pay (see Staff pay for what deductions are permitted by law).

2. Provided the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. 's contract is with the agency, they will also be responsible for:

   1. the workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. 's right to automatic enrolment in a workplace pension;

   2. ensuring the hours and work patterns of the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. are legally compliant, usually, that they are not working more than 48 hours a week, with suitable daily and weekly rest breaks. If the workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. does not have a contract, whoever is responsible for paying them is responsible for ensuring their hours are lawful;

   3. ensuring they are not treated less favourably than agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. working full-time in comparable roles;

For the additional rights that your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. will be entitled to once they have worked for your business for 12 continuous weeks see Q&A 49.

After they have worked for your business for 12 continuous weeks in the same role (see Q&A 50 for how to calculate this), an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. will be entitled to certain equal rights when compared to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workersPeople hired to work on an as required basis, sometimes known as seasonal workers. who are doing the same or similar work at the same location as them (or if there are no comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. at that location, then those at another location). These are sometimes known as Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role and they are in addition to the rights that agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. have on day one; see Q&A 47 and Q&A 48 for the rights an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. has from their first day working for you.

If the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's contract is with the agency and not with you directly (as is usually the arrangement), the agency is usually responsible for these Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role (although you could be found to shareA share in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. responsibility in certain situations). If the agency asks you to provide them with information about the terms and conditions for comparable members of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., you must send them the requested information so that they can make sure the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is treated equally. If you fail to provide any requested information, you can be held responsible if your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is treated unequally as a result.

The Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role to equal terms and conditions with comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. cover:

1. pay, which includes any fees, bonus, commission or holiday payPayment made by an employer to a worker during the worker's holiday time off work.. It does not include enhanced occupational sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability. (i.e. anything over and above statutory sick payA sum of money that certain members of staff are entitled to if they cannot work because of sickness.), pension or redundancyWhen a staff member is dismissed because his role is no longer needed. payments or enhanced payments for maternity, paternity or adoption leaveA period of leave from work available to certain members of staff who have adopted a child through an adoption agency or who have had a child through a surrogacy arrangement, during which they are still entitled to the benefit of all terms in their contract of employment (expect remuneration terms) and after which they are entitled to return to work. (ie anything over and above the statutory minimum);

2. duration of working time for a particular period of work (ie the same number of hours on a shift or during a working day);

3. working at night;

4. rest periods and breaks; and

5. annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave..

If the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. had been recruited directly by you, rather than through an agency as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., these five terms and conditions must be the same as you would ordinarily give to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Likewise, if you would have recruited them as a workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. (eg a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.), the terms and conditions you would ordinarily give to your workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. are the standard that the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. 's terms must meet.

An agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is entitled to Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role after they have worked for your business for 12 continuous weeks in the same role (see Q&A 49 for information about what these rights are).

The 12 weeks will restart if your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. undertakes substantively different work from what they were previously doing. For example, if your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. was initially carrying out basic administration tasks in a back office but then is placed in charge of the reception area and meeting and greeting clients, this will be a different role and the clock will restart. You must never try to stop agency staffStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. gaining Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role eg by changing their role every 11 weeks. If you do, they may be able to being a claim against you.

Beware that when calculating how many weeks an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. has worked for you:

1. In many cases, you must pause the clock if your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. goes away and returns to the same role after the break. Any time the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. works for your business before the break will be added to any time worked after the break. This applies if the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is:

   1. away for six weeks or less;

   2. off sick for less than 28 days and provides any medical evidence you have asked for;

   3. on maternity, adoption or paternity leaveA period of leave from work available to certain staff members in order to care for a new born child or support the child's mother. or other leave (eg annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave.);

   4. on jury service (up to 28 weeks);

   5. industrial action stops them from working; or

   6. you ask them not to work for a set period of time.

2. In some maternity or paternity circumstances, the 12 week period continues to run until what was to be the end date of the role, even though your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. cannot work. This applies when the reason for absence is:

   1. a reason related to your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. 's pregnancy;

   2. your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. has had a baby, is taking maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work. or is off of work and it is less than 26 weeks since she gave birth;

   3. your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. is on adoption or paternity leaveA period of leave from work available to certain staff members in order to care for a new born child or support the child's mother..

No. You must not try to structure your agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. ’s assignments to stop them from gaining these rights. If you do, they will still be entitled to them and you could face an Employment TribunalA tribunal that deals solely with employment disputes. claim.

Example: You hire an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. for data input for 11 weeks, but then move them to a filing clerk role for a time to try to avoid them gaining these rights before moving them back to data input. In this situation, you would be impermissibly structuring the agreements to try to avoid the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. gaining Week-12 rightsRights that an agency worker becomes entitled to after they have worked for a business for 12 continuous weeks in the same role.

This depends on what the internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. is doing. You must be very careful with how you use internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification.. They are not a source of free (or expenses-only) labour for your business. If you require an internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. to carry out all the tasks you would expect of a real staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in their position, they will be legally classed as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. (depending on the details of their involvement in your business) and may claim those rights (eg back pay at the minimum wage) against you .

There is no issue with an internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. who is genuinely shadowing your existing staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.; you do not have to pay them. For a template letter you can use to confirm the nature of the internship, see Unpaid internship letter.

You can hire an internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. in different ways, depending on whether they will be an unpaid internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. who will simply be shadowing your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., or if they will be doing actual work for your business. Broadly, if you expect an internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. to work as if they were a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., they are entitled to be treated as a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., including being paid for their work .

See Q&A 55 for information about taking on unpaid internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. and Unpaid internship letter for a template letter you can use, and Q&A 56 for information about taking on paid internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification..

Note that you have some additional obligations if your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. is aged between 16 and 18. See Q&A 70 for more information.

Whether your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. is properly regarded as a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. or not, remember that you must comply with your basic health and safety obligations, eg ensuring your premises are safe from a health and safety perspective, and carrying out a suitable risk assessmentThe process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers.. Failure to comply with health and safety law can result in criminal liability for your companyA private company limited by shares incorporated and registered in England and Wales. and any directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager or officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches. responsible. For full guidance, see Providing a safe and healthy workplace and When to do a general risk assessment.

No. If the internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. is to simply shadow your existing staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and will not be expected to produce any work, they should be engaged in a similar way to if they were a volunteer. You will not need to have any formal agreement between you and neither you nor the internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. will have any legal obligations to each other. For example, they could choose not to turn up to the internship or you could end it at any time. Nonetheless, it is best to make clear what the position is so there is no confusion. This will help to reduce the risk of the internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. trying to claim that they are a workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. or employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (and so entitled to the rights that they enjoy). You can use the template Unpaid Internship Letter to confirm the nature of the internship.

Yes.

You cannot use internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. as a source of free labour. If your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. will be doing work for your business, you will need to decide whether to hire them as a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. or as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.:

1. Hiring an internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.

   If, as will typically be the case, you will expect your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. to work set hours over a particular period of time and you plan to treat them as you would any other employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., you should hire them as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for a fixed term. This means offering them a contract of employmentA contract between employer and employee which sets out the rights and responsibilities of both. (for guidance on what you must include in employment contracts see Employment contracts and for a contract that you can use in this situation see Employment contract).

2. Hiring an internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. as a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.

   If you do not know how much work the internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. will be required to do, and you only want them on an as-required basis, then you should hire them using a casual contract (see Contracts for casual workers for guidance and see Contract - casual worker for a template contract that you can use).

See Q&A 57 for the rights that internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. will have in each of these situations.

The rights that your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. will have will depend on whether you choose to engage them as an unpaid internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification., or alternatively, if they are being paid, whether you choose to engage them as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. (see Q&A 54 for guidance on how to choose which option is best for your business).

If your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. is not working for you, but simply shadowing staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. working for your business, they will not have any employment or workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. ' rights against your business. Beware that an internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification.'s entitlement to employment or workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. ' rights are dependent on the work that they do, not on what you say their status is. If you use unpaid internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. (or expenses-only internsPeople who work (in which case they must usually be paid) or work shadow (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification.) to carry out all the tasks you would expect of a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in their position, they will be legally classed as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. and may claim those rights (eg for back pay at the minimum wage) against you .

If you opt to engage your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. eg for a short or fixed term, see Q&A 23 for their rights (see Q&A 16 for their rights if they are a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.).

If you opt to engage your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. as a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. (generally this is the case if they work on an as-required basis, with no guarantee(1) In the context of debt, a contract where someone agrees to pay if the debtor cannot pay themselves. (2) In the context of sale of goods, a promise to a customer which is given freely (without charging extra money) that the goods they are buying will meet certain standards, and if they do not the person making the promise will do something to make up for that (eg give a refund, or repair or replace the goods). of work and no full integration into your workforce) see Q&A 33 for further information about what rights they will have.

An apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. is a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member aged 16 or over who combines working for you as an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with studying at a partnered educational establishment to enable them to gain specific skills and qualifications in a particular area. The following questions deal with statutory apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. schemes in England which are funded by the government. Taking on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. outside the government-backed framework will not attract such funding and is outside the scope of this service.

You should only consider taking on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. if you are prepared to commit to the development of a very junior member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for an extended period of time. Apprenticeships typically last for between one and five years depending on the type of apprenticeship. You must also be comfortable that you have sufficiently experienced staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to support the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.'s learning and development. See Q&A 62 for the key things you need to know about taking on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college..

Apprenticeships can be a cost-effective way for your business to develop the skills of its workforce in a particular area and to build your workforce from the ground up. You will be taking on and developing a junior member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. which can engender loyalty from them and, once they are trained, can be more cost effective than taking on a fully-fledged employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with that skill set, not least because there is government funding which can help with the costs of training an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.. You may also be entitled to pay your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. a lower rate of the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. and you may not need to make National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. (see Q&A 66 for guidance on when this will the case).

This section relates to taking on apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.under the official government scheme in England only. There are different rules regarding apprenticeships in Wales, Scotland and Northern Ireland, details of which are currently outside the scope of this service.

All apprenticeships are arranged through the government apprenticeship service, so you'll need to sign up for an online apprenticeship account. To take on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college., you will need to do the following:

1. choose an apprenticeship standard and a provider to deliver training (see Q&A 61);

2. advertise for an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.; and

3. once you have chosen an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college., enter into an apprenticeship agreement and training plan with them, and a contract of employmentA contract between employer and employee which sets out the rights and responsibilities of both. (see Q&A 63).

This section relates to taking on apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.under the official government scheme in England only. There are different rules regarding apprenticeships in Wales, Scotland and Northern Ireland, details of which are currently outside the scope of this service.

1. Apprenticeship standard

   You must choose an apprenticeship standard that has been approved by the Government; you can find a full list on the Institute for Apprenticeships' website. These describe the occupation to which they relate (eg retail manager, plumber) and set out the outcomes (ie knowledge, skills and behaviours) that apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.are expected to achieve under the standard. Each apprenticeship standard will have its own funding band, which sets out the maximum price that the Government will support funding for. You can find a full list of funding bands on the Institute for Apprenticeships' website.

2. Training provider

   Once you have chosen your apprenticeship standard, you must find a provider to deliver the training, which you can search for on the Government's website. You are then free to negotiate the cost of the training with them, but bear in mind that you will need to fully fund any amount over the maximum funding band without any government support.

Once you have chosen your apprenticeship standard and training provider and you know what funding is available to you, your training provider will usually be able to assist you with advertising for an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college..

Once you have found an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college., you will need to enter into an apprenticeship agreement and training plan; see Q&A 63.

This section relates to taking on apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.under the official government scheme in England only. There are different rules regarding apprenticeships in Wales, Scotland and Northern Ireland, details of which are currently outside the scope of this service.

While there is government funding available for statutory apprenticeship schemes in England, the cost of an apprenticeship to your business will vary according to:

1. The apprenticeship standard that you choose to offer

   Each apprenticeship standard will have its own funding band, which sets out the maximum price that the Government will support funding for. You can find a full list of funding bands on the the Institute for Apprenticeships' website. See Q&A 61 for information about choosing an apprenticeship standard.

2. The provider that you choose to deliver the training

   You are free to negotiate the cost of the training with the provider you have chosen to deliver it, but bear in mind that you will need to fully fund any amount over the maximum funding band without any government support. See Q&A 61 for information about choosing a training provider.

3. The size of your business

   If your wage bill (ie the total of your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' earnings on which you pay National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions.) exceeds £3 million per tax year, you will be required to pay an apprenticeship levy into a digital fund each month, which is topped up by the government. This money can then be used to pay the cost of the apprenticeship training and assessment up to the maximum funding band for your apprenticeship standard (but not other costs, such as your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.'s wages or travel). Full coverage about how to calculate the apprenticeship levy is outside the scope of this service.

   If your wage bill is £3 million or under, you will not be required to pay the apprenticeship levy. Additionally, for new starters from 1 April 2024 who are aged between 16 and 21 years old, the government will fund all of the apprenticeship training costs, up to the funding band maximum. You will be responsible for paying any training costs agreed with your training provider that exceed the maximum funding band.

Bear in mind that there are other costs associated with an apprenticeship that you will need to pay without government funding, such as wages and holiday and sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability.. If your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. is under 25 years old, however, you will not need to pay National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. on their earnings below £967 per week. You will need to provide evidence if you want to apply for this relief (eg evidence that the apprenticeship receives government funding). There are also numerous government bursaries and incentives available, including for employersA people or businesses hiring one or more staff members. with fewer than 50 employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Additionally, employersA people or businesses hiring one or more staff members. will receive an additional payment of £1,000 when they take on an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. (a) aged 16-18 or (b) aged 19-24 who has either (i) previously been in care or (ii) an education, heath and care plan. This is to help with additional costs associated with supporting them in the workplace.

Full coverage of apprenticeship funding schemes is outside the scope of this service.

Yes. You must put in place an apprenticeship agreement with your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. (see Q&A 64) and sign a training plan with both your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. and your training provider (see Q&A 65). You must also sign a contract of employmentA contract between employer and employee which sets out the rights and responsibilities of both. with them to provide them with details of their employment, including their pay, working hours and other key terms. See Employment contracts for more information about what to include in an employment contract.

It is vital your apprenticeship agreement meets the strict legal requirements to comply with the government approved scheme; if not, it is likely that you will only be able to dismiss your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. before the apprenticeship ends in limited circumstances. In addition, if you do wrongfully dismiss an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. who is not on a government approved scheme early, they can claim a much higher sum of damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. than an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. who is on such a scheme, eg they may cover not only their loss of notice pay but also loss of future earnings and future prospects for being deprived of their training. It is therefore important that you comply with the legal requirements for apprenticeship agreements set out in Q&A 64.

An apprenticeship agreement is a contract of service for the purposes of employment law, which means that apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.generally have the same legal rights as employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.; see Q&A 66 for more information. There are certain legal requirements that your apprenticeship agreement must comply with in order for you to qualify for government funding:

1. it must state that the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. works for you for you for reward under an approved apprenticeship standard;

2. it must state that the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. will receive training in order to assist them to achieve the approved standard, including the amount of time they are to receive off-the-job training (ie training during their normal working hours for the purposes of achieving the apprenticeship standard). For full-time apprentices, this must comprise at least 20% of a 30-hour week (even if they work longer than 30 hours) during the period of the agreement. For part-time, it must be at least 20% of their normal hours; and

3. it must specify the practical period of the apprenticeship (which must not usually be for less than 12 months), taking into account the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.'s knowledge and skills, whether the work and training will be undertaken on a full or part-time basis and the approved standard.

It is vital your apprenticeship agreement meets the strict legal requirements to comply with the government approved scheme; if not, it is likely that you will only be able to dismiss your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. before the apprenticeship ends in limited circumstances. In addition, if you do wrongfully dismiss an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. who is not on a government approved scheme early, they can claim a much higher sum of damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. than an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. who is on such a scheme, eg they may cover not only their loss of notice pay but also loss of future earnings and future prospects for being deprived of their training. It is therefore important that you comply with the legal requirements for apprenticeship agreements.

Template apprenticeship agreements are currently outside the scope of this service.

Formerly known as a Statement of Commitment, the training plan sets out all of your key expectations, roles and responsibilities. You must have one and it must be signed by your business, your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. and your training provider.

Apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.are treated as employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for the purposes of employment law, therefore they will have the same legal rights as your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. This includes (amongst other things) the rights to:

1. Paid time off, including (but not limited to):

   1. annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave.;

   2. statutory sick payA sum of money that certain members of staff are entitled to if they cannot work because of sickness.; and

   3. maternity or paternity payPayment given to a new father, or the partner of a woman who has recently given birth, who takes time off work to care for the child and/or support the woman. and leave.

2. To be paid the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage., although note that the rate payable is lower for apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.who are either within the first 12 months of their employment with you or who are under 19 years of age. See Q&A 67 for more information.

3. The same protections as your other employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. when you are trying to end their contracts, including the right not to be unfairly dismissedWhen an employee is dismissed without good reason or without following the proper procedure. by you once they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for at least two years. See Q&A 69 for more information.

For full guidance about the rights and entitlements of employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (which are also enjoyed by apprentices) see Q&A 16.

Yes, although note that the rate payable is lower for apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.who are either within the first 12 months of their employment with you or who are under 19 years of age. Apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.who are aged 19 or over and who have completed at least one year of their apprenticeship are entitled to the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. rate that applies to any other employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in their age range. You can check the current national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. rates on the Government website.

If your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. is under 25 years old, you will not need to pay National Insurance contributionsCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions. on their earnings below £967 per week. You will need to provide evidence if you want to apply for this relief (eg evidence that the apprenticeship receives government funding). Note that there are also numerous government bursaries and incentives available, full coverage of which is outside the scope of this service.

Yes, apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.are entitled to both annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave.(see Dealing with annual leave for more information) and statutory sick payA sum of money that certain members of staff are entitled to if they cannot work because of sickness. (see Payment during sickness absence for more information).

Yes, but note that apprentices People who are taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college.are entitled to the same protections as your other employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. when you are trying to end their contracts. These include the right not to be unfairly dismissedWhen an employee is dismissed without good reason or without following the proper procedure. by you once they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for at least two years. You could also face a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. irrespective of how long the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. has been employed by you if, for example, the dismissal is related to whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered., an attempt by the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. to insist on some of their legal rights (such as health and safety) or their age, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation.

See Ending contracts with apprentices for more information about the process you must follow to dismiss an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college..

You should also bear in mind that it is vital your apprenticeship agreement meets the strict legal requirements to comply with the government approved scheme set out in Q&A 64; if not, it is likely that you will only be able to dismiss your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. before it ends in limited circumstances. In addition, if you do wrongfully dismiss an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. who is not on a government approved scheme early, they can claim a much higher sum of damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. than an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. who is on such a scheme, eg they may cover not only their loss of notice pay but also loss of future earnings and future prospects for being deprived of their training.

A person who is over the compulsory school age but under the age of 18 has special legal protections as a young person when they are working. Stricter rules apply when using workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. under the age of 16. However, such rules are outside the scope of this service.

The key rules that you must be aware of in relation to young people of under 18 are as follows:

1. There are restrictions on the number of hours a young person can be required to work; see Q&A 71 for more information.

2. Before you employ a young person, you must carry out a health and safety risk assessmentThe process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers. to assess any risks to them and any third parties in them carrying out their role and to identify any steps you might need to take to deal with those risks. When carrying out your risk assessmentThe process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers. you must take into account the relative lack of experience, awareness and immaturity of young people in general, the type of activities they will be doing, how much health and safety training they will receive, how the workplace is laid out and the type of equipment that will be involved and how it must be handled. Failure to comply with health and safety law can result in criminal liability for your companyA private company limited by shares incorporated and registered in England and Wales. and any directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. , manager or officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches. responsible. See When to do a general risk assessment for how to carry out a health and safety risk assessmentThe process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers..

   You must also be very careful about the work that you give a young person as they may be at a higher risk of having an accident eg due to lack of experience.

Yes; there are particular rules about the hours you can ask a young person under the age of 18 to work. Stricter rules apply when using workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. under the age of 16. However, such rules are outside the scope of this service.

The key rules that you must be aware of in relation to young people of under 18 are as follows:

1. Hours

   A young person is not allowed to work for more than 8 hours per day and 40 per week unless there is a surge in demand for a service or product, or workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. are needed to maintain continuity of serviceHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. or production and in either case, no adult workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. is available to do the work. Even in these circumstances, you can only exceed these limits if working these longer hours do not interfere with the young person’s education or training;

2. Night work

   A young person is not allowed to undertake night work for you. This means that they cannot work for you between 10pm and 6am (or if their contract requires them to work after 10pm, they cannot work between 11pm and 7am).

3. Breaks

   Generally, a young person must be allowed rest breaks of at least 30 minutes if they work for more than four and a half hours, a minimum daily continuous rest period of 12 hours and two consecutive days off per week. You can interrupt the two consecutive days off if there is work which is split up over the day or is for short periods. If there are business reasons why you need to give the young workerA worker who is over the compulsory school age but under 18. In England and Wales, a young person will be over the compulsory school age at the end of the last Friday in June of the academic year in which they turn 16. less than two complete days off you can do this, but you then must at least give them 36 consecutive hours off.

Note that there are some exceptions to the above in emergency situations where nobody else is available; see Q&A 72.

See Young workers for full details of your working time obligations when dealing with young workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. .

Yes; in certain circumstances, you can require a young workerA worker who is over the compulsory school age but under 18. In England and Wales, a young person will be over the compulsory school age at the end of the last Friday in June of the academic year in which they turn 16. to work for more than 8 hours per day or 40 hours per week, undertake night work and/or work during a period that would otherwise have been a rest period or a break. You can only require them to do so if no adult workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. is available to undertake temporary work which you need to be performed immediately. The work must also have come about either as a result of unusual and unforeseeable circumstances which are beyond your control, or because of exceptional events that have led to consequences which could not have been avoided by you, despite you exercising of all due care to do so.

If you do require a young workerA worker who is over the compulsory school age but under 18. In England and Wales, a young person will be over the compulsory school age at the end of the last Friday in June of the academic year in which they turn 16. to work through a period that would have otherwise been a rest period or break for these reasons, in the next three weeks you must allow them to take off an equivalent period of time to compensate them for having missed that rest or break.

See Young workers for full details of your working time obligations when dealing with young workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. .