HM Revenue & Customs has issued a warning to seasonal workers ahead of Christmas, urging anyone taking on temporary or short-term roles to check they are being paid at least the legal minimum wage.
HMRC said that temporary staff, students and workers on short-term contracts employed during the festive period are entitled to the same National Minimum Wage or National Living Wage rates as permanent employees.
The tax authority warned that underpayment often occurs through unpaid working time or inappropriate deductions, particularly during busy seasonal periods when staff may feel under pressure to work extra hours.
Workers are being encouraged to check their hourly pay carefully and watch out for unpaid time, such as starting early or finishing late to open and close premises, cleaning duties, or completing mandatory training outside contracted hours. HMRC also highlighted the risk of being underpaid when covering extra shifts without proper payment.
Deductions for items such as uniforms or equipment can also result in illegal underpayment if they reduce wages below the minimum level. HMRC said any such practices should be reported.
In the 2024–25 tax year so far, HMRC has identified £5.8 million in wage arrears owed to more than 25,200 underpaid workers. It has also issued around 750 penalties totalling £4.2 million to employers found to be breaching minimum wage laws.
The current National Minimum Wage and National Living Wage hourly rates are:
• £12.21 – Age 21 and over (National Living Wage)
• £10.00 – Age 18 to 20
• £7.55 – Age under 18
• £7.55 – Apprentices (under 19, or 19 and over in the first year of an apprenticeship)
Kevin Hubbard, HMRC Director for Individuals and Small Business Compliance, said workers should not assume mistakes are harmless.
“We want to make sure that workers are paid correctly this Christmas,” he said. “People should check their hourly rate and look out for any deductions or unpaid working time, which could take them below the minimum wage.
“Always make sure that you check your pay. If you think you have been short-changed, even if you no longer work for the employer, we are here to help.”
Employment experts have welcomed the warning, saying seasonal workers are particularly vulnerable to being underpaid.
Kate Underwood, founder of Southampton-based Kate Underwood HR and Training, said: “If your payroll’s playing Grinch, HMRC will play judge, jury and invoice. My advice to workers this Christmas is simple: check your age-band minimum wage rate, check your hours and check for any deductions.
“Unpaid trial shifts, so-called ‘mandatory training’, uniform costs, till shortages, travel between sites and accommodation charges can all drag you below the legal rate. Seasonal staff are exactly the people who get short-changed because they’re new, busy and often scared of being dropped. The law doesn’t do ‘it’s only temp’.”
She also warned employers to act quickly if mistakes are found.
“My message to businesses paying below minimum wage is simple: stop calling it an admin error,” Underwood said. “Wage underpayments are one of the fastest ways to end up in a tribunal. Do a wage check now and fix it before HMRC does.”
