Christmas is coming and along with the expected surge in shoppers crowding the High Street, eager to get their hands on the latest must-have or bargain – or going online to do the same thing but from the comfort of their living room – comes a big increase in the demand for seasonal workers.
If you’re an employer who needs to take on extra staff to cover the Christmas period (or for other reasons), what do you need to know in order to ensure legal compliance?
What is a temporary worker?
A temporary worker (colloquially known as a temp) is someone who doesn’t have a permanent employment contract. Instead, they’re hired for a limited period. Temporary workers are usually employed through an agency, but they don’t have to be.
Why might employers want to use temporary workers?
We’ve already touched on the need for workers to cover seasonal demand – not just around Christmas but also during the summer for harvesting and agricultural work. But there are plenty of other reasons, including:
- a work trial to see if the job is right for them;
- if a lot of employees are off sick at once or are taking annual leave at the same time, temporary workers may cover the gap;
- a specific project or a specific task e.g. digitising paper records; a one-off job that may not reoccur;
- to fulfil an urgent order;
- to cover a role until it can be filled permanently.
There are, of course, many other reasons for taking on temporary workers other than the ones outlined here.
The benefits of temporary workers
These include:
- flexibility;
- short hiring process and notice periods.
Temporary workers:
- are cost-effective compared to full-time employees;
- can fulfil a business need;
- can bring fresh perspectives to the business.
The benefits of temporary work aren’t only for the employer. The temporary worker may value the chance of a temporary contract as it:
- might turn into a full-time opportunity;
- provides networking opportunities and the chance to learn new skills;
- minimises gaps in employment;
- allows them to achieve work-life balance.
Is a temporary contract worker the same as a fixed term contract worker?
Yes, and no. There are a lot of similarities but there are also some key differences. Let’s take a look at those now.
- A temporary worker is usually contracted through an agency but they can also be contacted directly by the organisation for a short period, whereas a fixed term contractor is always contracted directly by the organisation for a fixed period.
- If the temporary worker is contracted by the agency, the employer pays the agency and then the agency pays the temporary worker. The fixed term contractor is paid directly by the organisation.
- When it comes to end dates, the temporary worker may not have a specific one in their contract, and so it may be ended or extended if there is demand for labour. The fixed term contract, as its name implies, has a specific end date and can be ended with the notice set out when the contract was entered into; a new contract is needed to keep them working after that specific date.
- The temporary worker is often hired for short term cover, but they can also be asked to do other work. The fixed term contractor will focus on a specific task or project, which is set out in the contract. If the employer wants them to work on another task, they will have to amend the contract or draw up a new contract to cover the change.
- Finally, a temporary contract might lead to a permanent position with the employer, whereas a fixed-term contract will automatically end on the agreed date or event.
What about zero hours?
Some employers might already be using a zero hours system and wonder what the difference is between that and the use of temporary contracts.
Some of the key points of difference include:
- A worker on a temporary contract has set hours and start / finish times and guaranteed work during that period, whilst a worker on a zero hours contract doesn’t have guaranteed hours.
- A temporary worker has to complete the work they’re given under the terms of the contract, and the employer has to provide work. A zero hours worker doesn’t have to take on work, and the employer doesn’t have to provide them with any.
- Depending on the terms of their contract, a temporary worker may not be allowed to take on work for other employers, whereas a zero hours worker can work for other employers.
- When it comes to employment rights, a temporary worker has the same rights as agency workers. A zero hours worker, on the other hand, has only limited employment rights.
How can a temporary contract become permanent?
For the majority of temporary workers, the job ends when the contract does. However, it may be that the employer is satisfied with the worker’s performance and decides that they would like to make them a permanent worker. How can they go about that?
If that decision is made, the worker’s temporary contract should be ended and they should be given a contract of employment that confirms their new status.
Although the law doesn’t require an employer to advertise the role before they give it to someone, they should nevertheless follow their company recruitment process to make sure that they don’t end up facing claims of discrimination from other temporary workers who haven’t been offered permanent work. It might be a good idea to advertise the role, albeit to a limited extent – maybe internally.
If you’re going to offer a temporary worker a permanent role with your organisation, you’ll need to make sure that the letter you send covers all the legal bases and saves you problems later on; one way of doing this is to speak to an employment law specialist who can walk you through what should be included and what not to say.
