Casual Employment Contracts: A Colden HR Guide

Running a small food business, whether it’s a street food stall, mobile food van, or independent cafe—often means you need flexibility when hiring staff seasonally. Casual workers can be a great solution, but it’s essential to get the legal side right.

Here’s a handy guide from Colden HR on how to manage casual employment correctly.

What is a Casual Employment Contract?

A casual employment contract is for workers who don’t have set hours or a guaranteed minimum number of shifts. This type of contract offers flexibility for both the employer and the worker, making it ideal for businesses that experience fluctuating demand, such as food stalls at festivals or seasonal pop-ups.

Key Considerations When Hiring Casual Staff

1. Flexibility v’s Employment Rights

Casual workers are not the same as full-time or part-time employees, but they do have rights. Under UK employment law, casual workers are entitled to:
✔ National Minimum Wage (NMW)
✔ Holiday pay (calculated based on hours worked)
✔ Rest breaks in line with Working Time Regulations
✔ Protection from discrimination and unfair treatment

2. Written Terms & Agreements

Even for casual staff, it’s best practice (and legally required) to provide a written contract outlining:
✔ The nature of the role (e.g., zero-hours, seasonal)
✔ Pay rates and holiday entitlement
✔ Expectations for accepting or declining shifts
✔ Notice periods for ending the working arrangement
A clear contract helps prevent disputes and ensures both parties know where they stand.

3. Managing Shifts & Rotas Fairly

While casual work is flexible, treating workers fairly is key. Avoid offering shifts on an unpredictable basis that makes it impossible for staff to plan their time. Consider using a scheduling app to keep shifts organised and communicate clearly with your team.

4. Holiday Pay – Don’t Forget It!

Casual staff must receive holiday pay, even if they only work occasionally. The simplest way to calculate this is using 12.07% of hours worked. For example, if an employee works 20 hours, they accrue 2.41 hours of paid holiday.

5. Handling Dismissals & Ending Contracts

Casual workers don’t have the same unfair dismissal rights as permanent employees, but that doesn’t mean you can let them go without following the correct process. If you need to stop offering work, give reasonable notice and ensure they receive any outstanding pay.

6. Zero Hours Contracts

You may well have seen in the news that new rules around the use of zero hours contracts are on the horizon as part of the Labour Government’s extensive Employment Rights Bill. The commitment has been made that ‘exploitative’ zero hours contracts will be banned when legislation goes through.

However, there is still much debate to take place on what exactly the changes will be, and they are unlikely to be enforced until 2026. There is no need to panic immediately if you use zero hours contracts. We will be tracking the changes as they progress and share news as it unfolds. If you have any concerns or queries regarding your zero hours contracts in meantime don’t hesitate to get in touch.

Common Pitfalls to Avoid

Exclusivity Clauses – You cannot prevent casual staff from working elsewhere.

Ignoring Holiday Pay – It’s a legal requirement, even for irregular hours.

Assuming Casual Means No Rights – Workers are still entitled to legal protections.

Need HR Support, there’s no substitute for 1-2-1 advice!

If you’re taking on casual staff and want to ensure your contracts and policies are legally sound, Colden HR is here to help. We offer tailored HR advice and can assist with bespoke contracts designed for your business. Please get in touch: [email protected]

By getting the HR side of things right, you can continue to build a happy, compliant and efficient team, so you can carry on focusing on serving up great food!