Hiring a university student over their summer break

Hiring a university student over their summer break

It's that time of year when the jobs market is about to be flooded with university students seeking short-term work over their summer break. Is there anything that you need to bear in mind when hiring a university student on a temporary basis?

Nature of the relationship

Most university students taken on for summer work will be engaged as employees, or at least as workers. We discussed determining employment status in Yr 26. This will usually be under a temporary or fixed-term contract. Even though their engagement is only short term, you must still issue them with a written statement of employment particulars no later than their start date. Where the engagement isn't intended to be permanent, this statement must set out the period for which it's expected to continue or, if it's for a fixed term, the date when it's to end.

Tip. As many students register with employment agencies over the summer break, those can be a useful source to fill short-term summer vacancies.

Pay and benefits

Whether they are an employee or a worker, the student will still be entitled to: (1) be paid at least the national minimum wage - £12.21 per hour if aged 21 or over and £10.00 per hour if aged 18 to 20; (2) receive at least 5.6 weeks' paid annual leave, calculated pro rata according to the length of their contract and (3) take rest periods/breaks and benefit from other working time protections.

In addition, if they are an employee on a fixed-term contract, they will have equal treatment rights under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002, meaning they should receive the same pay and benefits as a comparable permanent employee, unless you can objectively justify treating them less favourably. Benefits could be offered on a pro rata basis in proportion to the length of their contract or you could offer a pro-rated cash equivalent.

Trap. A fixed-term contract doesn't necessarily need a defined end date under the regulations. It can include one that will terminate on the occurrence of a specific event. So, it can include students taken on under short-term seasonal contracts designed to provide for additional demand.

Right to work and other matters

You will still need to conduct a right to work check before a university student starts work as an employee. If they are an international student on a student visa studying for a full-time degree level course, they can usually work: (1) up to 20 hours per week during term time; and (2) full time during vacation periods. However, they can't be employed on a permanent full-time contract.

Tip. Verify academic term and vacation dates with the international student's sponsoring university to confirm that the summer work falls within their official vacation period. A letter or email from the university can provide this evidence - retain a copy.

Tip. If the international student has the right to work, there should be an endorsement confirming this in their passport, or it should state this on their eVisa using the online right to work check service.

Payroll. Students aren't exempt from income tax and NI if their earnings exceed the thresholds. You should operate PAYE and provide them with payslips. You should also conduct full onboarding and give them appropriate training, such as on dignity at work, health and safety and data protection.

University students benefit from the same rights as other employees or workers, so you  must give them a written statement of employment particulars, pay them at least the  minimum wage and provide them with paid annual leave, etc. If they are employees, they  are also likely to have equal treatment rights with comparable permanent employees.

Kelly Anstee