Last week the GMB union won its case against Uber with the court ruling that British Uber drivers are not Self-employed and are instead Employees. As such, they are entitled to employee rights including National Minimum Wage (NMW), holiday pay, statutory sick pay (SSP). Despite Uber confirming they will appeal the decision, this case is raising more questions to those companies engaging self-employed workers.
If you need to operate PAYE what are the basics you need to know now!
1 – NMW
All workers are entitled to National Minimum Wage which is currently;
Over 25 years – £7.83
21-24 years – £7.38
18-20 years – £5.90
Under 18 years – £4.20
Apprentice – £3.70
2 – Holiday Pay
All employees are entitled to the statutory holiday entitlement which is 5.6 weeks per annum. For a worker working 5 days per week this equates to 28 days per year.
As as employer you can tell your employees when to take leave for example at Christmas or Bank Holidays.
Employers must pay holiday pay when the worker is on annual leave rather than rolled up in their pay. The only exception to this is when a worker has finished their employment and outstanding holiday pay is due.
3 – SSP
Employees are entitled to statutory sick pay (SSP) if they earn on average above £116 per week and have a period of incapacity for 4 days or more.
SSP is currently £92.05 per week and can be paid for up to 28 weeks. It cannot be reclaimed from the HMRC although each employer is entitled to an Employers Allowance of £3000 per year which is offset against Employers National Insurance deductions.
If you are reviewing the status of your subcontractors and need expert advise when setting up a new PAYE payroll speak to the CE Back Office team on 01270 899112 for simplified outsourced payroll solutions.
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