Share this content
6

Do zero hours workers count towards EMI limit?

Are zero hours workers included in the 250 full time equivalent employees limit?

Didn't find your answer?

Hi,

Can anyone please assist with the following: 

If a company employs hundreds of workers on zero hours contracts, but only a small number of full time staff, would it still qualify for the EMI scheme due to the 250 full time employee limit? If many of these workers are only with a company for a short period how would they be counted towards the company's fte total? 

If anyone has any experience of such a scenario it would be good to hear. 

Thanks

Replies (6)

Please login or register to join the discussion.

avatar
By Andy Reeves
02nd May 2019 11:22

Unless you have issued the zero-hours employee with a P45, then he/she is still an employee. Part-time or full-time makes no difference.

Thanks (2)
Replying to Andy Reeves:
Psycho
By Wilson Philips
02nd May 2019 16:51

But it does matter. The legislation specifically requires one to count the number of full-time, and/or full-time equivalent, employees.

Whether a zero-hours employee is full- or part-time for this purpose is an interesting question. I don't know the answer, although if pushed I'd say not full-time, unless they do actually work 35 hours per week.

One also needs to make the distinction between part-time workers and temporary workers, who could be either full- or part-time.

Thanks (0)
Replying to Wilson Philips:
avatar
By DP Walsh
02nd May 2019 18:41

Hi Wilson,

Thanks for your response. I believe that while there is no legal definition of a FTE, HMRC view a part time employee as % of a FTE depending on their hours. So a lot of zero hours staff would also amount to a lot of FTE.
I just wanted to check if anyone has experienced this in reality as HMRC's opinions are not always fully aligned with the law.

Regards

DPW

Thanks (0)
Replying to DP Walsh:
Psycho
By Wilson Philips
02nd May 2019 19:09

HMRC’s view is that anyone working less than 35 hours a week is part-time. I don’t have a problem with that interpretation.

Thanks (0)
avatar
By starbanana
07th May 2019 12:23

We all know what FTE is, if I have 4 people doing 17.5hours each then that's 1 FTE (if 35 hours are full time).

In the abscence of contractual hours, then I would expect HMRC would look at the actual hours being worked per week/month over a period of time to assess if 250 FTE limit is exceeded. If the limit isn't breached on that basis, then there shouldn't be a problem.

The same situation would occur in a seasonal business, where over a year there might easily be less than 250 FTE but for part of the year it's way over.

Thanks (0)
Replying to starbanana:
Psycho
By Wilson Philips
07th May 2019 13:00

If you have 4 people doing 17.5 hours each I think that you'll find that is 2 FTE.

Thanks (0)
Share this content

Related posts