Given that 2026 began with 50 consecutive days of rain in the UK, it is understandable that you may be thinking about summer.
As well as better weather (we hope), many businesses see summer as a busy time for trade and utilise seasonal workers to make the most of it.
However, recent changes to employee rights and payroll obligations could spoil your summer if you are not prepared.
With both a new tax year starting and the Employment Rights Act bringing in significant changes, April 2026 has been a notable time for employers.
Added layers of complexity may find businesses facing increased challenges with seasonal workers that may not have been present last year.
For businesses concerned about costs, another increase to the National Living Wage (NLW and the National Minimum Wage (NMW) is unlikely to bring much joy.
Though expected, changes to the NLW and NMW may impact seasonal workers more than other types of work, given that seasonal workers are generally younger and operating in lower-skilled roles.
The current hourly rates are:
Seasonal workers have the same legal rights to the NMW and the NLW as other workers, meaning that they must be paid this amount in full for every hour of work.
What can catch employers off guard is when a seasonal worker ages over a threshold during their brief time of employment.
Should an employee turn 18 or 21 while employed by you, they will need to be paid the new amount from that point, even if that is the last day they are working for you.
Previous years may have taught you to brace for changing rates of pay, but one thing that is entirely new for 2026 is the updated Statutory Sick Pay (SSP).
Seasonal workers have had a higher tendency to fall outside of the scope of SSP as they often earn less than the Lower Earnings Limit (LEL) and may not work long enough to qualify.
Under the new rules, employees are entitled to SSP from the first day of sickness and the removal of the LEL is expected to pull in 1.3 million more workers, many of whom are likely to be seasonal workers.
New calculations add further complexity as most employees will now be paid at the lower of either:
Alongside this, payroll records must be stored for a minimum of six years to avoid legal issues.
Not all of your payroll obligations for seasonal workers have changed, so keeping the updated rules in mind with ongoing practices will be important this summer.
While there is talk of changing or removing zero-hour contracts, that is unlikely to take effect until 2027, when one-sided flexibility will be tackled.
The Employment (Allocation of Tips) Act 2023 saw its first summer season last year, so any lessons learned from its implementation can be applied to your practices this year.
As a reminder, the legislation clarified the rules around tips and gratuities, ensuring that employees received 100 per cent of the money given.
It is best practice to assign a Troncmaster who can oversee the collective pool of tips, the tronc, that can then be assigned to employees based on an agreed proportionality.
Unlike in other countries, tips and gratuities cannot be used to supplement wages, so at least the full NMW or NLW must be paid as standard.
Tips and gratuities need to be processed through payroll.
To keep pace with all of the payroll requirements facing seasonal work this year, you would do well to get professional payroll support.
Our expert team are on hand to review your processes and ensure that you are ready for the new obligations before the summer starts.
We can manage your payroll records and requirements to keep your employees and HMRC happy.
Non-compliance can spoil your season faster than a thunderstorm, so having professional support can be the key to keeping the summer profitable for your business.
Payroll your seasonal workers with confidence by speaking to our team today.
