Our trainees at Jacksons continue to write about an area of law with a Christmas twist. In this piece Charlotte Alexander talks about employment rights of seasonal workers . Look out for further articles as the week goes on.
Q: What are elves good at running?
A: Small businesses!
But Christmas is big business and with over 2 billion customers to satisfy by 25th December, you can see why Santa would be inclined to treat his business along the same lines as Uber.
Uber is within the ‘gig economy’ where temporary positions are commonplace and independent workers (often referred to as ‘causal’ or ‘seasonal’ workers) contract for short-term engagements.
Many individuals are recruited on a self-employed basis meaning they have no statutory rights like employees and workers. The self-employed are responsible for their own tax and NIC, therefore an attractive option for staffing a business at a lower cost. However some businesses have been accused of using phony self-employment status’ to deprive those who are actually workers, of their key rights and entitlements.
So what does this all mean for Santa and his elves?! Well… Santa needs to be careful and not end up on the naughty list himself!
Santa should note that under English employment law, an elf will be classed as a worker if:
1. the elf is working under a contract of employment or is in another a contractual relationship with Santa, who is giving the elf work to do;
2. the elf promises to do or perform personally any work or services for Santa;
3. the elf is not in a relationship with Santa whereby Santa is essentially the customer of the elf’s profession or business undertaking.
Where the elf is a worker, the elf will be entitled to the following statutory rights:
1. protection against unlawful deduction from wages;
2. national minimum wage;
3. paid annual leave;
4. rest breaks;
5. maximum working week; and
6. right to be accompanied at a disciplinary or grievance hearing .
The old joke should be food for thought for Santa…
Q: What is Santa’s tax status?
A: Elf-employed!
