So, what should you do?

In UK law, casual workers are entitled to a written agreement.  A casual worker agreement is a good way to go about this.  This entails, the name and address of the casual worker and the employer; the start date of the agreement and their expected duties.  The working hours have to be included, not as a promise of work, but to highlight expected hours; and also the pay, to which NMW is applicable.  Termination of the agreement can be a date as to which the agreement is ended, and it must also state how it can be terminated by both parties.  What would you consider reasonable notice?  The agreement should not go over two tax years; but they are a casual worker, why would you want it to?

So, you have the casual worker agreement outlined, what do you do now?

As long as you both have a signed copy, that is great.  No, you do not have to see each other sign it.  The casual worker should be inducted properly, and best practice is for them to have a personnel file with all required information, NI number, emergency contact, tickets of competency etc.  With their casual worker agreement, you can also attach your code of conduct, any policies you have which relate; don’t forget casual workers are entitled to statutory sick pay by law.  Best practice would be a starter pack which would be issued to all workers on commencing their employment.

When paying the casual workers, you do not have to run a payroll for them.  It can all be done fairly easily.  Although their earnings will have to be reported as taxable earnings, they may not be subject to PAYE tax and NI deductions.  This is if the worker hits certain criteria such as:

• Have they worked for you for under two weeks or under?

• Will the workers days exceed 14 in a year?

• Are their earnings below the Lower Earnings Limit?

To payroll or not to payroll...

If you are not running a payroll, records must be kept of what you pay your casual workers for 3 years after the end of the current tax year, and their details kept on file.  If you are, each Full Payment Submission must transparently indicate start and finish date, they most usually will fall under start declaration B as you are not employing them or paying them ‘frequently’ and ‘regularly’.  You can also record this as a one-off payment and make sure it is recorded within 7 days.

So there are a few things to bare in mind.  The best way to make sure it is done properly is to ensure you have the expertise in place in order to negotiate this situation correctly.  Do you need someone to run you payroll?  Are you looking to revamp your new-starter policies and procedures?  Do you need someone to draft your contract in order to protect your business and yourself?   I can help you.