When 2026 began with 50 consecutive days of rain in the UK, many took it as a poor omen for the year’s weather.
Summer is on the horizon, offering a change in pace from the cold, bleak seasons that preceded it.
Many businesses will be gearing up for a spike in seasonal work, but changes to employment law and financial obligations could spell dark skies for unprepared employers.
To keep the sun shining on your business, we are helping you understand what has changed with seasonal work and what has stayed the same.
How has payrolling seasonal workers changed this year?
April 2026 saw both the commencement of the new tax year and a major change in worker rights enacted by the Employment Rights Act.
For businesses that may have already found payrolling seasonal workers complex, the changes may have increased the challenge.
Even those who were once confident may find themselves caught off guard.
Mirroring last year, there has been a notable increase in the National Living Wage (NLW) and the National Minimum Wage (NMW), which are more likely to affect seasonal workers due to them typically being younger and working lower-skilled roles.
The current hourly rates are:
- £12.71 for people aged 21 and over
- £10.85 for people aged 18 to 20
- £8 for people aged under 18
- £8 is the apprentice rate
It is imperative that seasonal workers receive at least the NMW or NLW, depending on their age, for every hour of work they complete.
If a seasonal worker has a birthday during their time with you that pushes them over a threshold, you will need to change their salary from their birthday, even if that is the last day they are working with you.
While changing the NMW and the NLW is somewhat expected now, the recent updates to Statutory Sick Pay (SSP) will have a greater impact on payroll, especially for smaller businesses.
It may have been the case that your business never needed to worry about SSP for seasonal workers if they did not work long enough to risk qualifying or were firmly below the Lower Earnings Limit (LEL).
However, the LEL has now been removed and SSP is now awarded from the first day of absence rather than the fourth.
Seasonal workers may be eligible for SSP for the first time, placing a greater strain on your payroll if you are not prepared to handle this new obligation.
New calculations add further complexity as most employees will now be paid at the lower of either:
- 80 per cent of the employee’s average weekly earnings
- The prevailing SSP flat rate set by the government – £123.25 per week for the 2026/2027 tax year
All records relating to payroll, including those of seasonal workers, must now be kept for a minimum of six years.
What has stayed the same with payrolling seasonal workers this year?
While there is much talk about changing or scrapping zero-hour contracts, they remain in effect for this year.
There is a likelihood that 2027 may see them removed or altered significantly to remove the one-sided flexibility.
Last year saw the first summer where the Employment (Allocation of Tips) Act 2023 was in effect and these rules continue to be enforced this year.
This legislation centred on the need to process tips and gratuities through payroll, as well as outlining the appropriate handling of this alongside employee salaries.
As a reminder, tips cannot be used to supplement wages and 100 per cent of tips and gratuities are to be shared among employees.
The division of this can be determined in consultation with employees and should be handled by the dedicated Troncmaster in charge of the collective pool of tips – known as a tronc.
Another thing that has not changed is the value of expert payroll support.
Our team can help you to make the most of the summer season with fully compliant payroll processing.
We are up-to-date with the latest rules and requirements, ensuring that your summer is less stressful with the fear of non-compliance removed from you.
Speak to our team to confidently payroll your seasonal workers.