Employment Law Essentials for Agricultural Businesses

Employment Law Essentials for Agricultural Businesses

A Practical Guide for Farms Across England & Wales

The agricultural sector is unique in its working patterns, culture, and operational demands. However, despite these differences, farms remain fully subject to UK employment law. In practice, many agricultural businesses unintentionally fall short of their legal responsibilities as employers, this is often due to informal practices, seasonal pressures, or a lack of HR infrastructure.

At REAL Success Ltd, we regularly support farming businesses who are unknowingly exposed to risk, not through intent, but through lack of clarity, systems, or up-to-date knowledge.

This guide highlights the most common areas where farms fall short, along with practical steps to remain compliant and protected.

Please note: This guidance applies to England and Wales. Employment law in Scotland may differ, and specific advice should be sought where applicable.

1. Right to Work Checks

All employers must confirm that every employee has the legal right to work in the UK before employment begins.

What’s required:

• Check valid original documents (e.g. passport, visa or check code) The full list of documents can be found at GOV.UK
• Verify the individual matches the documents either in person or though a verified digital platform
• Keep dated records of the check on file

Where farms go wrong:

• Hiring seasonal or part time staff without checks
• Relying on assumptions
• Missing follow-up checks for visa holders or expiring documents

If you identify current employees who have not had their Right to Work checked, this must be done immediately. Failure to comply can result in significant fines and reputational damage.

2. Working Hours against farming reality

Agricultural work often involves long hours, particularly during peak seasons. However, this does not override the Working Time Regulations 1998.

Key legal points:

• Maximum average working week: 48 hours (unless the employee has opted out)
• Minimum daily rest: 11 consecutive hours
• Weekly rest: 24 hours uninterrupted (or 48 over two weeks)
• Rest breaks: 20 minutes if working over 6 hours

Common issues:

• Staff regularly working 55–70 hours without a signed opt-out
• No tracking of working time
• Lack of rest breaks during busy periods

This can lead to tribunal claims, enforcement action, and reputational damage.

Areas to consider:

• Use written opt-out agreements where necessary
• Keep basic records of hours worked
• Plan rotas to allow minimum rest, even in peak periods

3. Pay and Salary Compliance

In agriculture, pay structures can be informal, particularly for long-standing or family-members. However, employers must still comply with:

• National Minimum Wage (NMW) / National Living Wage (NLW)
• Payment for all hours worked

Common pitfalls:

• Salaried employees working excessive unpaid hours
• Salaried employees falling below minimum wage due to high working hours
• Accommodation or benefits incorrectly offset against wages

Example:
An employee working an average of 60 hours per week at 25 years old:

Salary – £35,000 – equivalent to £11.22 per hour (below minimum wage of £12.71)

£11.22 x 60 hours x 52 weeks = £35,000

Areas to consider:

• Regularly audit pay against actual hours worked
• Ensure salaried roles still meet minimum wage when hours are considered
• Keep accurate payroll records

4. Holiday Entitlement (Especially for Part-Time and Seasonal Staff)

Holiday entitlement is another area where farms frequently miscalculate or overlook obligations. Its key to remember that Holiday entitlement is calculated on days worked per week, not hours worked per week.

Legal entitlement:

• 20 days holiday, plus the 8 bank holidays.
• This is pro-rated for part-time staff
• Accrued from day one, including for seasonal or temporary staff

Common issues:

• Not offering holiday to seasonal or temporary staff
• Incorrect pro-rata calculations for part-time staff

Example:
An employee doing 3 days per week is entitled to:

3 × 5.6 weeks = 16.8 days annual leave (if bank holiday entitlement is included)

Areas to consider:

• Clearly document entitlement in contracts
• Track accrual for all employees, including temporary staff
• Ensure holiday is actually taken, not just paid

6. Lack of Written Contracts and Policies

By law, employees must receive a written contract of employment from day one. This includes, permanent, part time, temporary or self-employed staff.

Common gaps:

• No written employment contracts
• Outdated or generic templates
• Missing key terms (hours, pay, holiday, notice periods)

Areas to consider:

• Issue clear, role-specific employment contracts
• Include working hours expectations and flexibility
• Regularly review and update documents

How REAL Success Ltd Can Support You

The most common theme across these issues is not deliberate wrongdoing, but lack of structure and awareness.

By putting in place simple systems, clear contracts, basic record-keeping, and consistent onboarding processes, farms can significantly reduce the risks.

We specialise in supporting agricultural businesses with practical, straightforward HR and employment law guidance.

If you would like a review of your current practices, contracts, or compliance processes, our team is here to help.

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