National Living Wage and the Self-Employed

How does this affect people who work at my pub and are self-employed?

Published: 08 April 2016

Q:  A number of the people who work at my pub are self-employed. Do I still need to ensure that their pay is equivalent to either the NLW or the NMW (depending on their age)?

A:  It is quite possible that some staff, such as cleaners and door supervisors, may be contracted to you on a self-employed basis and so are not ‘employed’ by you. 

If someone is self-employed then you would not need to ensure that they are paid either the NLW or the NMW.  To establish if a staff member is self-employed there are a numerous factors which could be considered, but it is likely that if the following are true then they are self-employed: 

(1) They are not under direct supervision when working; 

(2) They provide an invoice to you for charges in respect of work carried out; 

(3) They pay their own national insurance and tax; 

(4) They do not get holiday or sick pay when they are not in work; and

(5) They operate under a contract. 

However, if you are unsure you can contact HMRC.