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.
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