Understanding Employment Rights of Casual Workers

A casual worker is an individual who works for an organisation on an irregular basis. There is no guarantee of hours from the employer and therefore are not considered by the organisation as being part of the permanent workforce.

There are 3 reasons for a genuine redundancy situation:

• when the business closes down (inc temporarily);
• when the business relocates, and the employee cannot get to the new place of work;
• when fewer employees are required for the current work.

What type of contract would I give a casual worker?

Casual workers can be employer on a short-term, zero-hours or other type of contract. The contract will not state any amount of hours the employee is required to work.

The specific terms of the casual worker’s contract will determine the exact rights they have. 

When a casual worker completes the work they are employed to do, do they come off payroll?

It’s not necessary to remove them if you feel you may use them again. However, if they are likely to get a permanent role, it is recommended that you end their employment on payroll.

What employment rights does a casual worker have?

A casual worker is entitled to basic employment rights, such as:

• National minimum wage
• National living wage
• Statutory holiday pay (20 days per year)
• Rest breaks (during work hours and between shifts)
• Protection from unlawful wage deductions
• 48-hour working week (the right to not work more than 48 hours)
• Statutory sick pay (if they meet the required criteria)

Casual workers have less employment rights than a permanent employee may have, such as protection from unfair dismissal, parental leave and pay (if they meet the criteria) the right to make a request flexible working pattern etc.

Employment law will impact their rights if the worker is considered either a ‘worker’ or ‘employee’.

If a casual worker has regular scheduled hours to work, they may have closer rights to a permanent employee.

How to calculate annual leave entitlement for a casual worker

To calculate the pay for individuals working irregular hours, you need to base it on their average pay over the past 52 weeks.

The organisation’s leave year is not applicable when calculating annual leave for a casual worker.

For example, Jenny takes one week’s holiday on 1^st August – 7^th August (7 days). Jenny’s average weekly pay for the previous 52 weeks is £400 per week. Jenny will receive £400 holiday pay for that week she is on annual leave.

If an employee hasn’t had 52 weeks of service, you would need to look at how many full weeks they have been working for the organisation and use that as the average.

The employer will need to ensure that they count previous weeks in the 52 weeks, if there are any weeks in this period where the employee may be off work due to sickness or family leave.

For more guidance on calculating annual leave, visit the ACAS website: https://www.acas.org.uk/irregular-hours-and-part-year-workers/calculating-holiday-pay

What is a seasonal worker?

In some scenarios a seasonal worker can be considered as a ‘type’ of casual worker. Although the work is temporary, they may be given a contract with more defined hours, and a start and finish date.

Essentially, a seasonal worker could be someone who is on a fixed term contract, which will have a start and end date. This person could be employed full or part-time.

Is a casual worker on a zero-hours contract?

A casual worker is mainly considered to be on a ‘zero-hours’ contract.

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