Employing seasonal staff at Christmas

October 9, 2024

Are you counting the days yet? There are probably fewer than you think before Christmas comes around once again. And, as for many businesses, you might look forward to an upsurge in trade as the festive season kicks in. That could also mean the need to hire additional seasonal staff to cope with the Christmas rush.

When you do that, you must make sure to heed the law on employers’ liability insurance.

What is employers’ liability insurance?

If you employ anyone else in the running of your business, you must have at least £5 million of cover in Employers’ Liability Insurance the moment you take on any employee. That is the law – it is simple and unambiguous.

As an employer – as rigorously defined in the law – you have a duty of care towards such individuals. Suppose they injure themselves at work or suffer an illness? In that case, even if its effects are long-delayed – because of the work you asked them to do, they have a right to see your duty of care translated into concrete, financial compensation.

The relevant law – the Employers’ Liability (Compulsory Insurance) Act 1969 – recognises those rights by ensuring that any employer is covered by sufficient insurance that they can fully compensate any employee who has the misfortune to suffer an accident at work, injure themselves there, or contract an illness or medical condition because of the work they have done.

A minimum level of cover of £5 million ensures that every eventuality – even the death of an employee or a long-term illness or condition that does not come to light until many years after the event – can be met with suitable and adequate financial compensation.

Employers’ liability insurance is not only there for the protection of any of your current employees – including any seasonal staff – but for those who worked for you in the past and have only now been diagnosed with a medical condition or illness they contracted when working for you. To that extent, the cover is not only a legal requirement, but also protects your financial liabilities as an employer.

Who is an employee? 

The law also has a very broad definition of “employee”. The definition applies to whatever work you ask your employee to do – manual, clerical, or anything else. It includes those who are working for you whether there is a written or verbal contract or agreement between you and whether it is an implied or expressed contract or agreement.

It’s important to remember, therefore, that even if it’s a friend who has offered to help you out, or a youngster volunteering for job experience, the law still typically regards them as employees – and you will still need employers’ liability insurance.

Are there any exceptions for needing employers’ liability insurance?

There are very rare exceptions – and these apply principally to immediate members of your family (the specific relationships are set out in the legislation). In every other instance, the law applies, and you must arrange sufficient employers’ liability insurance bought from a recognised and authorised insurer.

Don’t forget!

If you plan to take on any seasonal staff in the run-up to this Christmas, don’t forget that you are almost certain to need employers’ liability insurance – and you can buy just what you need here at Alan Blunden Insurance Brokers. Further reading: Your commercial premises over the Christmas period