Robin Turnbull

In rural Scotland, where around 84 per cent of businesses describe themselves as family-owned, the line between employee and family member can often blur. From farming to hospitality, most businesses – especially in agriculture – are considered family affairs.

But as the UK Employment Rights Bill prepares to take effect, one questions looms: will using family members instead of formal employees allow business owners to circumvent its key provisions?

The answer is no. And while much of the bill’s finer details are still being finalised, there’s no better time than now to start preparing – and avoid costly repercussions down the line.

Putting relatives, volunteers or contractors to work won’t allow you to sidestep legal obligations

As the new bill comes into play, it will enforce new policies aimed at protecting workers’ rights – guaranteed hours for casual workers, day-one protection from unfair dismissal and tighter legislation around “fire and rehire”, to name but a few.

For rural businesses that rely on seasonal labour and zero-hour contracts, this could mark a significant shift in how they operate. The definition of “flexible working” has long been interpreted in various ways. Traditionally, it means moving away from the usual 9-5, Monday-to-Friday working pattern, giving employees the freedom to adjust hours to fit their day-to-day lives. On the other hand, it’s given employers flexibility – allowing them to take a more fluid approach and employ workers on an ad-hoc basis. Under the new legislation, this level of flexibility for employers will be pulled back.

Even workers on “low hour contracts” – still to be formally defined under the legislation – will be entitled to regular hours, as well as rights to set wages, holiday pay and regular breaks. Ultimately, relabelling someone a ‘volunteer’ or ‘contractor’ won’t offer employers a free pass. If someone is doing regular, commercial work for them – even family members – they’re likely to be considered an employee in the eyes of the law.  

What rural employers need to know – and do – to stay compliant

Many Scottish businesses are aware of the new bill coming into force, but many still don’t understand how significant the changes will be – or believe it simply won’t apply to them. To stay ahead of the game and mitigate legal risk, the time to understand its impact – and act – is now. And there are several key steps businesses should already be considering.

As regulations tighten around the need for regular working schedules, those relying on volunteers or contractors should act quickly to put formal agreements in place. Even if it’s just a few hours of work each week, having a signed contract helps set expectations by putting clear parameters in place. Seeking professional advice when drafting these agreements is also key – ensuring the terms are accurate, legally sound and aligned with the new requirements.

If businesses are unsure about their staff’s working patterns, keeping accurate records is a good place to start. Using timesheets to track hours worked provides a clearer picture of whether a casual arrangement has become more regular – and gives a better understanding of what type of contract should be in place. It also gives employers the evidence they need if any questions arise later down the line.

Ultimately, to avoid falling foul of the law and facing potentially costly claims around flexible working or guaranteed hours, having the right resources and guidance will help to safeguard their business.

The bottom line

Legislative changes can seem overwhelming, especially for rural businesses who might assume that informal arrangements or family ties offer protection. But the Employment Rights Bill applies across the board, and the risks – if ignored – can be high.

Whether you’re employing full-time staff or bringing in a sibling or close friend to help on the farm, cutting corners isn’t an option.

While the flexibility employers once had may be reduced, getting ahead of the changes now – by seeking trustworthy advice and implementing appropriate processes – will help to keep you on the right track and safeguard your business long-term.

Robin Turnbull is a partner at Anderson Strathern