What is the Definition of Casual Labour?

According to UK employment law, a person’s employment status helps determine their rights and employer’s responsibilities.

The main types of employment status are:

• Worker
• Employee
• Self-employed/contractor
• Director
• Office holder.

There is no rigid definition of a casual worker or casual contract in United Kingdom law. However, there are fundamental differences between an employee and a worker.

A person is typically classed as a worker if:

• They have a contract or arrangement to do work personally for a reward (a contract doesn’t have to be written);
• The ‘reward’ can be for money or a benefit;
• They only have limited right to subcontract the work;
• They have to turn up for work even if they don’t want to;
• Their employer must have work for them as long as the arrangement lasts;
• They aren’t doing the work as part of their own company in an agreement where the employer is a customer or client.

On the other hand, according to UK law, an employee is someone who works under an employment contract.

Employees have the same rights as workers, as well as:

• Statutory Sick Pay;
• Statutory maternity, paternity, adoption, and shared parental leave and pay;
• Minimum notice periods if their employment will be ending;
• Protection against unfair dismissal;
• The right to request flexible working;
• Time off for emergencies;
• Statutory Redundancy Pay.

Let’s take a look at the different types of casual employment, casual contracts, and the rights they are afforded under UK employment law.

What are the Different Types of Casual Employment?

There are several different types of casual employment, outlined below.

Zero Hours Contracts

A zero-hour contract is a type of employment contract whereby the employer is not required to provide a set number of working hours for the employee. These types of contracts are typically used in industries that experience fluctuations in demand, such as tourism or seasonal industries.

Guaranteed Minimum Hour Contracts

Whereas zero-hour contracts are flexible and have no fixed amount of hours, a Guaranteed Minimum Hour Contract offers an employee or worker guaranteed hours of work in a defined period.

Self-employed or Freelance Contracts

Freelance or self-employed contracts are made when work is agreed to be carried out by someone operating independently and not for the employer as an employee. There may be a contract for work completed.

Fixed Term Contracts

A fixed-term contract is an agreement between an employer and employee that work will be provided for a specific amount of time. The contract will end after an agreed period or upon completion of a defined amount of work. These types of contracts are often used seasonally by industries that experience increased demand.

Casual Worker’s Rights and Casual Labour Rules

Whereas an employee is entitled, a worker on a casual contract typically isn’t entitled to:

• minimum notice periods;
• protection against unfair dismissal;
• the right to request flexible working;
• time off for emergencies;
• Statutory Redundancy Pay.

However, a worker is usually entitled to the following:

The Right to a Written Statement of Terms

Both employees and workers have the right to a written document detailing the fundamental terms of their employment. However, people classed as workers do not have the right to written terms if they started their role before 6th April 2020.

Holidays and Holiday Pay

Employees and workers are entitled to 5.6 weeks statutory holiday, as outlined in the Working Time Regulations Act 1998. This does not include self-employed workers. The statutory holiday includes those working on fixed-term, minimum hours, and zero-hours contracts. It will entitle the worker to 28 days leave for a full-time employee but would need to be calculated pro-rate for those working less than full-time hours.

Working Hours

Like employees, workers are entitled to defined daily and weekly rest periods. They also operate under the maximum weekly working time limits unless they have signed an opt-out.

Part-Time Work

Part-time workers, or those on minimum guaranteed hours contracts, have the right not to be treated less favourably than those working full-time hours. The only exception is if the difference in treatment can be justified.

Fixed-Term Work

It is widely accepted that fixed-term workers allow for greater flexibility in the workplace. However, fixed-term contract workers are entitled to the same rights as a permanent employee after they have completed the necessary length of service – in most cases, twelve weeks.

Sickness and Sick Pay

Statutory Sick Pay rules still apply to workers on casual contracts. So, for example, if a worker needs time off for sick leave, they must still be paid Statutory Sick Pay, but will not receive full sick pay as a permanent employee would do.

Maternity, Paternity, Adoption, and Parental Leave Pay

A worker is entitled to family rights, such as maternity, paternity, adoption, and parental leave pay. However, they may not receive full payment for their time off. For example, workers may only receive Statutory Maternity Pay, which is 90% of their average weekly earnings for the first six weeks, followed by £151.97 or 90% of their average weekly pay (whichever is lower) for the next thirty-three weeks.

Pension

All employers in the UK are legally required to automatically enrol workers and employees into a pension scheme and pay the required minimum contributions. The minimum input from an employer must be 3% of your monthly income. The term ‘worker’ or ‘casual worker’ is a loose one. They can refer to several casual contract types. Therefore, it can be hard to define the employment status of casual workers, as there is no clear definition of the term. However, it typically applies to temporary work. One clear thing, however, is that workers on a casual contract are still protected by employment law. Perhaps not as thoroughly as an employee might be, but workers on a casual contract are still protected from discrimination and unfair dismissal according to the Equality Act 2010. Take care to define your casual worker’s roles and contracts, ensuring that you adhere to employment law.
See more: Pay bands in the UK How to Communicate a Pay Raise