Mince pies and the minimum wage 

As Christmas and New Year approaches, many firms will rely on additional seasonal staff for shops, warehouses, hospitality outlets and delivery services, but employers must not overlook meeting minimum wage rates and holiday pay obligations.

Those working ‘Christmas jobs’ – including part-time, temporary and zero-hours workers – are legally 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 that has been in place from 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 under-estimating holiday pay.

Nearly 500 employers were recently fined more than £10 million for failing to pay the National Minimum Wage and £6 million 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.

Said Amy Cusworth, employment lawyer at Rotherham-based Oxley & Coward Solicitors LLP:  “Seasonal staff can be a major boost to business, but only if the basics are handled correctly.  Now is the time for employers to double check pay, holiday entitlements and paperwork before the festive rush turns into a new year compliance headache.  The naming and shaming of 500 employers recently, including many high street names, shows the reputational damage involved in failing to make the right calculations.”

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

Amy Cusworth added: “Christmas comes but once a year, as the saying goes, and seasonal staff may come and go, but statutory pay rules don’t take a holiday, and employers need to keep them firmly in the calendar all year round.”

[This is not legal advice; it is intended to provide information of general interest about current legal issues.]