As Christmas and New Year approach, many employers will rely on additional seasonal staff for shops, warehouses, hospitality outlets and delivery services. It is crucial, however, not to overlook legal obligations around minimum wage and holiday pay.
Those working ‘Christmas jobs’ – including part-time, temporary and zero-hours workers – are entitled to the same minimum hourly rates and holiday entitlements as other employees.
Under the Working Time Regulations 1998 (as updated), almost all workers must receive 5.6 weeks’ paid holiday a year, even if they work only seasonally, part-time, or irregular hours. Holiday pay for those with irregular hours or part-year contracts should now be calculated using the 12.07% accrual method or, if using rolled-up holiday pay (permitted since April 2024), clearly identified on the payslip.
That is especially important at this time of year: the extra shifts, longer working hours, and deductions for uniform or unsocial-hours premiums increase the risk of inadvertently slipping below the minimum wage or underestimating holiday pay.
Nearly 500 employers were recently fined more than £10 million for failing to pay the National Minimum Wage, and £6 million was put back into the pockets of workers following a crackdown as part of the Government’s Plan for Change, and an open hotline for reporting underpayments to HMRC. These figures highlight the real risk, both financial and reputational, of non-compliance.
Seasonal staff can be a real asset during the festive period, but only if employers get the fundamentals right. This is the time to review pay, holiday entitlements and paperwork before the Christmas rush turns into a new year compliance crisis.
Checklist for employers
- Review pay rates and contract terms to ensure they meet or exceed minimum wage requirements for all hours worked (including overtime, training, opening/closing time and unpaid work)
- Audit holiday entitlement and pay calculations for irregular-hours or part-year staff, ensuring holiday pay is not simply built into an hourly rate unless properly documented
- Ensure payslips clearly show holiday pay separately (especially if using rolled-up holiday pay)
- Ensure payroll software is up to date and applying the latest rates of tax and national insurance
- Understand that failure to comply can trigger HMRC enforcement action, including penalty payments and the requirement to pay all arrears owed
National Living Wage and National Minimum wage rates 2025
- National Living Wage (21 and over) – £12.21
- 18 to 20 – £10.00
- Under 18 – £7.55
- Apprentice – £7.55
Christmas may come but once a year, as the saying goes, and seasonal staff may be temporary, but statutory pay rules never take a holiday. Employers must keep them, and compliance generally, firmly on the calendar all year round.
About the author
Karen Cole is a Partner and Head of the Employment team at RIAA Barker Gillette. She has a range of expertise based on her employment law, dispute resolution, and litigation background. Karen provides employment law advice to businesses and individuals, whether contentious or not. She is a member of the Employment Lawyers Association (ELA) and the Association of Regulatory and Disciplinary Lawyers (ARDL).