Payroll Compliance for Event Caterers: Pensions & Seasonal Staff Management

The UK hospitality industry, supporting around 2.6 million jobs in 2025, is a major contributor to the economy. Event catering services often depend on seasonal and temporary workers to meet changing needs. This makes payroll compliance for event caterers more complex than for many other businesses, particularly when managing short-term contracts and peak-season workforces. Clear processes for handling pay, leave, and pensions are essential to remain compliant. Effective seasonal staff payroll management for event catering services allows businesses to meet their legal obligations while maintaining the flexibility needed to operate efficiently during busy periods.

Understanding Payroll Compliance for Event Caterers in 2026

Day‑One Rights for Paternity and Unpaid Parental Leave

From April 2026, the Employment Rights Bill will grant workers day‑one eligibility for paternity and unpaid parental leave. Event caterers hiring new fathers during busy periods will need to allow eligible workers to take leave from their first day of employment. Employers should update contracts and leave policies accordingly. 

Statutory Sick Pay (SSP) Reforms

Two key changes to SSP are expected in April 2026:

• Removal of the Lower Earnings Limit (LEL): There will be no minimum earnings threshold for SSP, making more staff, including part-time workers, eligible.
• New rate linked to average earnings: Employees will receive 80% of their average weekly earnings or the flat rate (£118.75), whichever is lower. This ensures better earnings replacement for low-paid staff.

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Fair Work Agency and Increased Enforcement

The Fair Work Agency will be established in April 2026 to enforce the National Minimum Wage (NMW), holiday pay, and SSP. Event caterers will face increased scrutiny of pay practices, tip distribution, and record keeping.

Tipping Reforms

The Employment (Allocation of Tips) Act 2023, effective 1 October 2024, requires employers to pass all tips to workers without deductions. The Employment Rights Bill also proposes that, from October 2026, employers must consult workers when creating or changing tipping policies. Event caterers must formalise tipping policies, consult staff, and keep records to avoid tribunal claims.

Dismissal and rehire, anti-harassment, and other changes

Additional changes in October 2026 include:

• Fire‑and‑rehire restrictions: This practice will become automatically unfair in most cases.
• Anti‑harassment duties: Employers must show they took reasonable steps to prevent harassment from third-party customers.
• Longer tribunal time limits: Claims will have six months instead of three to be lodged.
• Trade-union rights: Employers must inform workers about their right to join a union.

Auto-enrollment and Pensions for Seasonal Staff

Assess each worker during every pay period:

Employers must assess seasonal or temporary workers for auto-enrolment eligibility each time they pay them. This includes staff on irregular hours or casual contracts. If workers meet the age and earnings thresholds, they must be enrolled in a pension scheme.

Use a postponement for very short-term staff:

If workers are with you for less than three months, you can use postponement to delay pension assessments. However, you must apply this postponement on or before the worker’s eligibility date and notify them in writing.

Minimum Contribution Levels and Qualifying Earnings:

Workplace pensions remain at 8% of qualifying earnings, with 5% from the employee and 3% from the employer. Qualifying earnings for 2025/26 are between £6,240 and £50,270. Employers should check for updates when the 2026/27 thresholds are announced. With seasonal fluctuations in staffing, seasonal staff payroll management for event catering services becomes even more important as it ensures that all temporary staff are enrolled correctly in the pension scheme and paid on time.

Future Reforms to Age and Earnings Thresholds:

The Pensions (Extension of Automatic Enrolment) Act 2023 may lower the age threshold from 22 to 18 and remove the lower earnings limit, meaning contributions will begin from the first pound. The government has not yet announced when these changes will take effect.

Holiday Entitlement and Pay for Irregular Hours

Workers Build Up Holiday from Day One

All workers, including those on zero-hours or casual contracts, are entitled to 5.6 weeks of statutory paid holiday per year. Holiday entitlement is accrued from the first day of employment, including during probation, sickness, and parental leave.

New Accrual Method for Irregular Hours and Part-Year Workers

From April 2024, workers with irregular hours or part-year contracts will accrue holiday at 12.07% of hours worked. As part of their event catering pensions and holiday pay responsibilities, employers need to ensure that all temporary workers receive the correct holiday pay, whether it’s accrued or paid out during employment.

Real-Time Information and Payroll Reporting

Employers must use Real-Time Information (RTI) to report payroll data to HMRC every time they pay a worker. Seasonal staff who leave employment must receive a P45, but it will not be submitted to HMRC. RTI-compatible payroll software helps ensure compliance and avoids penalties.

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Payroll Best Practices for Event Caterers

To stay compliant, consider the following best practices for managing payroll:

• Issue written contracts: Ensure all workers receive a statement of employment details, including duties, pay rates, holiday entitlement, and tip distribution.
  
• Classify staff correctly: Avoid misclassification of employees, workers, or self-employed staff.
  
• Track hours accurately: Use digital time-tracking systems for accurate pay, holiday accrual, and pension assessments.
  
• Plan budgets early: Estimate staffing needs and include wages, National Insurance, pension contributions, and holiday pay in your budget.
  
• Use postponement strategically: Apply postponement for workers who will leave within three months.
  
• Calculate holiday correctly: Use the 12.07% method for irregular hours and part-year workers.
  
• Follow RTI rules: Submit an FPS on time, even if paying early (e.g. before Christmas).
  
• Develop a tipping policy: Document how tips are collected and distributed, and consult your workforce.
  
• Train managers: Provide training on harassment prevention and employment rights.
  

Case Studies For Payroll Compliance

Case Study  – Festival Catering Company

Situation: A festival catering company approached us when hiring 100 temporary waiting staff for a six-week summer event and needed clarity on managing payroll and compliance for short-term workers. A festival caterer hires 100 temporary waiting staff for a six-week summer event.

Actions Taken:

• We applied for postponement for workers hired for less than three weeks.
• Weekly assessments were carried out for workers staying longer than three weeks.
• Holiday accrual was tracked using a time-tracking app under our guidance.
• With our assistance, a tipping policy was created and distributed to employees.

Outcome: The company avoided auto-enrolment penalties, ensured fair pay practices, and reduced administrative costs by focusing enrolment on staff staying beyond three months.

Case Study  – Wedding Catering Business

Situation: A small wedding catering business came to us for support in managing payroll for 20 casual servers hired across multiple events throughout the year.

Actions Taken:

• Contracts were issued up front outlining pay and holiday entitlement following our advice.
• Digital timesheets were implemented to maintain RTI compliance.
• Holiday pay was processed in arrears as guided.
• Anti-harassment training was put in place for staff.

Outcome: The business maintained compliance, improved staff retention, and reduced the risk of tribunal claims, with clients valuing clear and transparent pay practices.

How Apex Accountants Can Help You

Payroll Services 

Expert payroll support for event caterers, including processing wages, HMRC reporting, and handling seasonal staff pay. This helps free up your time and keeps you compliant with HMRC rules.

Pension Auto-Enrolment Support 

Assistance with assessing pension auto-enrolment eligibility, managing postponement, and maintaining pension contributions, so you meet legal duties without confusion.

Holiday Pay & Compliance Advice 

Help with calculating holiday entitlement for irregular hours and zero‑hours staff, and guidance on holiday accrual and payments.

HR and Employment Law Support

Practical help with employment contracts, leave rights, anti-harassment duties, and documentation to match your business needs.

For expert guidance on event catering pensions and holiday pay, and to ensure compliance with all payroll laws for seasonal staff, contact Apex Accountants today.