If your business takes on seasonal or temporary workers, it is important to make sure they are being paid correctly.

All workers, including those on short-term or temporary contracts, are legally entitled to at least the National Minimum Wage or National Living Wage for every hour worked.

What employers need to check

Seasonal roles may be short-term, but the rules are the same as for permanent staff. That means:

• All working time must be counted. This includes time spent opening or closing, cleaning, travelling between sites or attending mandatory training outside normal hours
• Pay must not fall below the minimum wage after deductions. This includes costs for things like uniforms or equipment

Current minimum wage rates

• £12.21 – Age 21 and over (National Living Wage)
• £10.00 – Age 18 to 20
• £7.55 – Under 18
• £7.55 – Apprentice (under 19, or 19+ in their first year)

These rates are the legal minimum and apply to every hour worked.

Enforcement and penalties

HMRC continues to actively enforce minimum wage compliance.

In 2024/25, underpayments totalled £5.8 million across 25,200 workers. Penalties of £4.2 million were issued to 750 employers.

Penalties can be up to 200% of the underpayment amount, on top of the arrears owed. Non-compliant employers may also be publicly named or face prosecution.

Holiday accrual

It’s worth noting that seasonal / temporary workers are entitled to holiday which is accrued based on the hours worked in a pay period. For leave years starting on or after April 1, 2024, statutory holiday entitlement for seasonal workers and irregular hours workers will accrue at a rate of 12.07% of actual hours worked in a pay period.

The figure of 12.07% represents the statutory minimum holiday entitlement of 5.6 weeks as a proportion of the working year of 46.4 weeks. If a worker is entitled to additional holiday under their employment contract, the corresponding rate needs to be calculated and applied.

Avoiding errors

Seasonal hiring can create additional pressure and risk, especially in payroll.

If you need help managing seasonal payroll or want to be sure your pay arrangements are compliant, we are here to support you.