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Farm labour contracts: getting the basics right

Farm labour contracts: getting the basics right

Farming is not a 9am – 5pm job and it can be difficult to predict how many staff a farm needs from one season to another. Obviously, there will probably be a permanent crew, but in busier seasons, such as harvests, expansion or diversification, the farm may need more temporary or ad hoc help. Usually, the farm can engage casual workers on zero hours contracts to pick up the extra work needed from time to time, but this has just become a little more tricky now that the Employment Rights Bill has passed the final stage of the commons – and zero hours contracts, as we knew them, are to be no more.

From early next year, when engaging extra workers, it is of vital importance to be clear about the employment status of that worker, because all workers are entitled to certain legal protections, regardless of the label attached to the relationship.

Employment status

Employment status for all workers, including agricultural labourers, can be categorised as:

  • employees;
  • workers; or
  • self-employed.  

Understanding the difference comes down to three essential elements: how much control the employer can have over the worker, whether the worker must provide personal service and whether both parties are bound by a mutual obligation to each other: one to perform: the other to pay. Spotting the difference between a worker and employee is something else entirely, and essential to get right because employees have important rights such as the right not to be unfairly dismissed, and to request flexible working, as well as sick pay, maternity and paternity pay.

A worker has some limited employment rights, such as being paid the National Minimum Wage, protection against unlawful deductions from wages, paid holiday and regular rest breaks, but important protections such as minimum notice periods and protection from dismissal is lacking. Such workers tend to be engaged on a fixed-term or zero-hours contract and generally have no right to pass the work onto someone else.

The self-employed operate their own business, can choose when and how to do the job and can hire others to do the work. They are responsible for their own tax and benefits and have very limited employment law rights apart from protection of their health and safety, protection from discrimination, and any rights and responsibilities set out by the terms of the contract they have with you.

Importance of written terms and conditions

Although it is not a legal requirement to provide a worker with an employment contract, it is a legal requirement to provide every worker/ employee with a written statement of employment, detailing the main basic terms and conditions of employment from the first day of their employment. 

Although basic written terms and conditions provide a clear record of the terms of engagement and is a legally binding agreement that cannot be breached by either party, it is usually a good idea to provide a more detailed and personal employment contract so that the employer is protected from matters that do fall within the basic position, such as restricting your employee from dealing with the competition.

Keys clauses

Key clauses to include in any farm labour contract are details on duties and responsibilities, working hours and conditions, pay and benefits, and termination provisions. They should identify the employer and the recruit, and define the agricultural work to be performed.

They should also include:

  • Job description and responsibilities – the tasks and duties the worker will be expected to undertake.
  • Working hours and patterns –the expected working hours, days, and any flexibility in scheduling.
  • Remuneration – the rate of pay, how it will be calculated, payment frequency, and any benefits in kind (e.g, accommodation or meals).
  • Leave and holidays – entitlements to holidays, sick leave, and any other types of leave.
  • Termination and dispute resolution – notice periods, grounds for dismissal, and how disputes or breaches will be addressed.
  • Confidentiality – provisions regarding the protection of any confidential information belonging to the farm business.
  • Health and safety – the employers and workers responsibilities regarding health and safety on the farm, including risk assessments and training. 

How we can help

Making sure that farm labour written terms and conditions and/ or contracts are both legally sound and right for your business is essential. It can be very expensive if a contract is breached, or the terms are no longer legally acceptable or you have created, often accidently, a vague contract which cannot be enforced. Our employment law specialists will talk you through your requirements and draft written terms and conditions that reflect your needs and ensure you are legally compliant.

For more information please contact our Employment Team on York 01940 716000, Wetherby 01937 583210 or Malton 01653 692247 or email law@warekay.co.uk to see how we can assist.

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