The term ‘casual worker’ in the UK is a catch-all used to refer to a person who is not part of a business’s permanent workforce. Instead, they work on a casual – ie, flexible, or irregular – basis, rather than doing fixed hours/days on a permanent contract. Staff on demand, basically. No demand? No work.

For some, this would be their worst nightmare – uncertainty, anxiety, inability to plan ahead. For others it means freedom, choice and balance. The main draw on both sides is flexibility. Often, casual workers are used in businesses where demand fluctuates and there is a need to quickly scale up or down staffing, like retail, events and hospitality.

The term ‘casual worker’ covers a whole load of scenarios and people, such as:

Freelancers/the self-employed: also known as ‘independent contractors’ – under UK law these are a distinct group, treated a bit differently to other ‘casual workers’.
Short/fixed-term contracts – people hired for a specific period, task, service or project.
Seasonal workers
Zero-hours contracts

You may have heard of the Cambridge casual worker system. The University of Cambridge was a pioneer in flexible work, based on its historical practice of hiring ad hoc staff to cover busy periods and for the more domestic and admin type roles, where demand would fluctuate across the academic year.

Beyond academia, this practice has been in place across a range of sectors in the UK for many years and the agile flexibility it offers is only getting more desirable for all concerned.

So if you think casual workers would be a great fit for your business, how do you go about hiring them?

First, you need a contract.

Casual employment contracts

What is a casual worker contract? While casual work is associated with less job security, it does not imply a total lack of rights. The situation will vary depending on the type of casual work, but generally casual workers are still entitled to at least the National Minimum Wage or National Living Wage. They must also receive the same protections and guarantees as anyone else with regard to a safe work space or place, and have the same rights under the Equality Act.

What about paid leave?

What do you do about casual workers’ holiday pay? Most casual workers (not freelancers) are entitled to the same amount of statutory paid leave as employees (5.6 weeks per year), accrued based on hours worked. But as their contracts are not fixed and may not be full-time, calculating holiday pay for casual workers is a little more complex. HMRC suggests you use 52 weeks of pay data to work out the rate of holiday pay.

In terms of how and when this is paid, there are a few options, including rolled-up holiday pay (RUHP). Many businesses use a leave planner to track casual workers’ entitlements accurately, ensuring compliance with labour laws and avoiding miscalculations.

Is it worth it?

Whether or not casual work can work for you will depend on how highly you value flexibility. And this will largely depend on your lifestyle, if you’re a worker, or your business model and sector, if you’re a business owner or manager.

For business, the case for hiring casual staff is pretty strong. But remember that casual workers can say no, and you could be left high and dry if you rely too heavily on ad hoc workers. You may also be vulnerable to poaching in competitive seasonal industries.

Key takeaways

Casual work can be a win-win for both parties, as it offers mutual flexibility. But as it also comes without a long-term commitment or guaranteed hours, there is a cost–benefit analysis to do first to figure out if this works for you and the perks outweigh the risks.

It’s important to note that ‘casual’ does not imply lower value or importance – work is still work, and workers of all kinds have rights, including paid leave. So however you’re working, be sure you’re getting (and giving) what you need and what you’re owed!

Author – Phil Norton

Phil is the co-founder of Leave Dates, the employee annual leave planner. He loves problem-solving and making life easier for small businesses. If you book a Leave Dates demo, he will give you a warm welcome and show you everything that you need to know.