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How to Run Payroll for Zero-Hour and Casual Staff in the UK

Zero-hour and casual staff are common in UK hospitality, retail, care, and events. But payroll rules for them are not the same as for full-time employees.


UK payroll tips for zero-hour and casual staff – WorldWage Services

Here's how to stay compliant, avoid fines, and pay your team correctly.


What Counts as Zero-Hour or Casual?

Zero-hour staff:

  • Have no guaranteed hours

  • Work only when needed

  • Often vary hours weekly

Casual staff:

  • Usually short-term

  • May be students, temps, or flexible hires

  • Often not on fixed shifts

Both are classed as workers under UK law—and you must process payroll for them.


1. RTI Submissions Still Apply

Even if someone works one shift, you must:

  • Add them to payroll

  • Assign a tax code

  • Submit an FPS (Full Payment Submission) to HMRC on or before payday

Don’t skip FPS—even if they only worked once.


2. Use the Right Tax Codes

Most zero-hour staff start on a BR, 0T, or emergency tax code if they haven’t submitted a P45.

Use HMRC’s new starter checklist to get this right.


3. Calculate Holiday Pay Accurately

Holiday pay is often missed—but it's a legal right.

For casual staff:

  • Accrue at 12.07% of hours worked

  • Or calculate using average earnings over 52 paid weeks

Pay options:

  • Pay when holiday is taken

  • Add to each payslip as “rolled-up holiday pay” (must be clearly labelled)


4. Enrol in Pensions (If Eligible)

Zero-hour staff still qualify for workplace pensions if they:

  • Earn over £192/week

  • Are aged 22 to State Pension age

  • Are classed as ‘workers’ and not self-employed

If eligible, auto-enrol them. Reassess each pay period if hours vary.


5. Issue Payslips Every Time

UK law requires a payslip for every pay run, no matter how small.

Include:

  • Hours worked (if pay varies)

  • Gross pay

  • Deductions (tax, NI, pension)

  • Net pay


6. Stay On Top of Starters and Leavers

These contracts have high turnover. That means:

  • Process new starter info quickly

  • Issue P45s when workers leave

  • Avoid double-taxing or RTI rejections


How WorldWage Handles This

Our managed payroll includes:

  • Weekly or monthly pay runs

  • Holiday pay tracking

  • Pension assessments

  • Leaver/starter setup

  • Secure payslip delivery

  • RTI submissions for every shift


Whether you run a care agency, coffee shop, or event crew, we keep your payroll legal and easy.



 
 
 

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