What is the difference between a casual worker and an employee?

Under Section 230 of the Employment Rights Act 1996, an employee works under a contract of employment with mutuality of obligation (the employer must provide work, the employee must do it). A worker personally performs work but without the same level of mutuality — crucially, there is no obligation to offer or accept work between assignments. Workers have fewer statutory rights than employees: for example, they cannot claim unfair dismissal or statutory redundancy pay, but they are entitled to the National Minimum Wage, paid holidays, and protection from discrimination.

Can a casual worker become an employee over time?

Yes. If the reality of the working relationship changes — for instance, if the worker is given regular shifts, is expected to attend, and the employer depends on them — a tribunal may find that the individual has become an employee regardless of what the contract says. The Supreme Court in Autoclenz Ltd v Belcher [2011] confirmed that tribunals look at the true agreement between the parties, not just the written terms.

How do I calculate holiday pay for casual workers?

For workers with irregular hours, holiday pay is calculated using the 52-week reference period under Sections 224-226 of the Employment Rights Act 1996. You average the worker's weekly pay over the last 52 weeks in which they received pay (ignoring weeks with no pay). Alternatively, since 1 April 2024, the Working Time (Amendment) Regulations 2023 allow employers to pay rolled-up holiday pay at 12.07% of the worker's pay with each payment.

Do casual workers get Statutory Sick Pay?

Casual workers are entitled to SSP if they meet the qualifying conditions: they must earn at or above the Lower Earnings Limit (currently £123 per week on average), be sick for at least four consecutive days, and have notified the employer. The Employment Rights Bill 2024 proposes to remove the Lower Earnings Limit and waiting days, which would extend SSP to more casual workers.

Can I use a casual worker agreement for regular shifts?

If you are offering someone regular, predictable shifts with an expectation that they will attend, a casual worker agreement is not appropriate. The individual is likely an employee, and you should use a standard employment contract or part-time contract instead. Using a casual agreement to avoid employment rights when the reality is a regular working pattern puts you at risk of an employment tribunal claim.

Free Casual Worker Agreement Template (UK)

A casual worker agreement is a contract used to engage individuals on an irregular, as-needed basis without guaranteeing ongoing work.

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Employer Details

Employer / Engager Name*

Employer Address*

Employee Details

Worker Name*

Worker Address*

Terms

Type of Work*

Agreement Start Date*

Usual Place of Work*

Notice Period (During Assignment)*

Payment Details

Hourly Rate of Pay*

Pay Frequency*

Pay holiday pay as rolled-up percentage on each payment

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CASUAL WORKER AGREEMENT Dated: [startDate] PARTIES: (1) [employerName], of [employerAddress] (the "Engager"); and (2) [workerName], of [workerAddress] (the "Worker"). IT IS AGREED as follows: 1. STATUS AND NATURE OF ENGAGEMENT 1.1 This is a casual worker agreement. The Worker is engaged as a worker within the meaning of Section 230(3)(b) of the Employment Rights Act 1996 and is not an employee of the Engager. 1.2 There is no obligation on the Engager to offer the Worker any work, and there is no obligation on the Worker to accept any work offered. Each offer of work that is accepted by the Worker shall constitute a separate and distinct assignment. 1.3 Between assignments, no relationship of any kind exists between the parties. No continuity of employment is implied between assignments except to the extent required by law. 1.4 The parties acknowledge that a tribunal or court will determine the Worker's employment status based on the reality of the working relationship, in accordance with the principles established in Autoclenz Ltd v Belcher [2011] UKSC 41. 2. TYPE OF WORK 2.1 When work is offered and accepted, the Worker shall perform the following type of work: [typeOfWork]. 2.2 The Engager shall notify the Worker of available assignments, specifying the date, time, location and nature of the work. 2.3 The Worker is not required to accept any assignment offered and may decline without giving a reason. 3. PLACE OF WORK 3.1 The Worker's usual place of work shall be [workplace]. 4. PAY 4.1 The Worker shall be paid at a rate of [hourlyRate] per hour for all hours worked during each assignment. 4.2 Payment shall be made monthly by bank transfer, subject to deductions for income tax and National Insurance contributions where applicable. 4.3 The hourly rate shall not be less than the prevailing National Minimum Wage or National Living Wage under the National Minimum Wage Act 1998. 4.4 The Worker shall complete and submit accurate timesheets for each assignment. 5. HOLIDAY 5.1 The Worker is entitled to 5.6 weeks' paid annual leave per year in accordance with the Working Time Regulations 1998. 5.2 Holiday pay shall be included as a rolled-up payment calculated at 12.07% of the Worker's hourly rate, added to each payment. This element shall be clearly itemised on payslips. 5.3 The Worker is encouraged to take their full statutory holiday entitlement and shall notify the Engager when they wish to take leave. 6. SICKNESS 6.1 The Worker shall be entitled to Statutory Sick Pay (SSP) if they meet the qualifying conditions under the Social Security Contributions and Benefits Act 1992. 6.2 If the Worker is unable to attend a scheduled assignment due to illness, they must notify the Engager as soon as practicable. 7. HEALTH AND SAFETY 7.1 The Engager shall take all reasonably practicable steps to ensure the Worker's health and safety while performing work, in accordance with the Health and Safety at Work etc. Act 1974. 7.2 The Worker shall comply with all reasonable health and safety instructions and policies. 8. TERMINATION {{#if noticePeriod === 'none'}}8.1 Either party may terminate this agreement at any time. As there is no obligation to offer or accept work between assignments, either party may simply cease to offer or accept further assignments. 8.2 The statutory minimum notice required by Section 86 of the Employment Rights Act 1996 shall apply where the Worker has been continuously employed for one month or more.[else]8.1 During an assignment, either party may terminate by giving none notice. Between assignments, no notice is required. 8.2 The statutory minimum notice provisions of Section 86 of the Employment Rights Act 1996 shall apply where applicable.{{/if}} 9. WORKER'S STATUTORY RIGHTS 9.1 The Worker is entitled to the following statutory rights: (a) The National Minimum Wage / National Living Wage; (b) Paid annual leave under the Working Time Regulations 1998; (c) Protection from unlawful discrimination under the Equality Act 2010; (d) Protection from unlawful deductions from wages under Part II of the Employment Rights Act 1996; (e) Whistleblowing protection under Part IVA of the Employment Rights Act 1996; (f) A safe working environment under the Health and Safety at Work etc. Act 1974. 10. RIGHT TO WORK ELSEWHERE 10.1 The Worker is free to work for any other employer or client and this agreement does not restrict the Worker from doing so. 11. CONFIDENTIALITY 11.1 The Worker shall not disclose any confidential information of the Engager obtained during assignments. 12. DATA PROTECTION 12.1 The Engager shall process the Worker's personal data in accordance with the UK GDPR and the Data Protection Act 2018. 13. GENERAL 13.1 This agreement constitutes the entire agreement between the parties. 13.2 This agreement shall be governed by the laws of England and Wales. SIGNED by or on behalf of the Engager: ___________________________ For and on behalf of [employerName] Date: SIGNED by the Worker: ___________________________ [workerName] Date:

Important Notes

Legal Disclaimer

Employment status in the UK is determined by the reality of the working relationship, not the contract label (Autoclenz Ltd v Belcher [2011] UKSC 41). Section 230 of the Employment Rights Act 1996 defines three categories: employee (subsection 1), worker (subsection 3(b)), and self-employed. Workers have fewer rights than employees but are protected by the National Minimum Wage Act 1998, the Working Time Regulations 1998 (paid holidays), the Equality Act 2010 (discrimination), Part II of the Employment Rights Act 1996 (unlawful deductions), and the Health and Safety at Work etc. Act 1974. Holiday pay for workers with irregular hours is calculated using the 52-week reference period under Sections 224-226 of the Employment Rights Act 1996. Rolled-up holiday pay (paying an uplift with each payment rather than paying for holiday when taken) was previously considered unlawful following Robinson-Steele v RD Retail Services [2006] (ECJ), but is now expressly permitted for irregular-hours workers under the Working Time (Amendment) Regulations 2023 from 1 April 2024.

This template is provided for informational purposes only and does not constitute legal advice. For complex legal matters, we recommend consulting a qualified solicitor.

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