MoneyMagpie Editor and financial expert Vicky Parry explores employment law for under-18s considering a summer job
Working a summer job is a great way for teenagers to earn some extra cash, gain some work experience, and have some independence.
But there are some important laws that parents – and teens – should know about to make sure their employer is sticking to the rules.
How long can an under-18 work each week?
Children from the age of 14 can work part-time hours (in some areas, this is lowered to 13 – check your local council’s education department). Those under 14 may be able to work in exceptional circumstances, such as if they are a performer in TV, theatre, or as a model, and will need a performance licence.
Children over school leaving age can work full-time up to 40 hours a week. This is the age of 16 in Scotland, Wales, and Northern Ireland. In England, children must be in part-time education or training until the age of 18, so can only work part-time hours.
How much can under-18s earn?
Young people aged 16 and above may be paid through PAYE systems, and once they turn 18 adult employment rights apply. National Minimum Wage rates apply regardless of a person’s age. This means employment must meet the minimum hourly rate for their age bracket. For under-18s, that is £7.55 an hour (rising to £10 an hour when they turn 18).
So, if you get a job earning £7.55 an hour for twenty hours a week, that would be a gross pay of £151 a week. This would not be enough to qualify for National Insurance or tax contributions, so £151 would be the take-home in most cases.
Over-16s need to pay National Insurance if they earn more than £242 a week. They would pay tax when they earn more than the annual Personal Allowance (currently £12,570). Sometimes, for full-time or highly paid summer jobs, this means they may be taxed at first but can claim a refund when the job ends.
Can under-18s be self-employed?
Yes! Technically, a company director can be appointed to a Limited Company from the age of 16, however it is advisable they are not the sole director.
This is because they are legally responsible for company activities, including filing with Companies House and tax returns. Under-18s also don’t have legal capacity to enter into certain contracts such as with suppliers, and will not be able to apply for financial business support or business bank accounts.
Under-18s can operate as sole traders, and will need to register with HMRC for Self Assessment if they will earn more than £1000 (the Trading Allowance). They will need to submit a tax return every year to HMRC, and keep accurate accounting records to do so.
They won’t pay tax on their income if it is below the Personal Allowance of £12,570 each year, after business expenses. They may be required to pay National Insurance contributions.
Safe work environment awareness
If a job requires operating heavy machinery or toxic chemicals, the workplace must provide relevant training and supervision. There may be some parts of the job that an under-18 cannot do, such as operating dangerous machinery. They cannot be discriminated against for their age in the work environment.
An employer must provide relevant health and safety training to every employee, regardless of their age. This includes a responsibility to work within reasonable hours. For most employment for under-18s, this means no scheduled work between 10pm – 6am, with some exceptions such as creative work (like being a theatre actor), healthcare, or retail.
This only applies if there are no adult workers available to do the work. It is illegal for any under-18 to work between midnight and 4am, regardless of their job or industry type.
There must be a 12-hour rest break in any 24-hour period in which they work, and any shift over 4.5 hours must include a half hour break (paid or unpaid). Each week must also include a continuous 48-hr (two-day) rest break.
When working late, an employer has a duty of care to under-18s to ensure they have the supervision of an adult employee where possible and necessary. They shouldn’t be left alone unless there is nobody else to do the job.
Under-18s working on alcohol licenced premises
Local councils set their own rules about under-18s working in pubs, cafes, restaurants and event venues that serve alcohol. Usually, they are permitted to serve alcohol but this may be restricted to only bottled or canned drinks.
Make sure teens know HR policies
Summer jobs are often the first time young people will come into regular contact with hierarchies and colleagues and customers of all ages. This can mean they are unsure how to handle difficult situations where they feel uncomfortable.
It might be that they feel a colleague or customer is being inappropriate with them. Or, they may not realise that someone is acting inappropriately, such as using a managerial position to pressure them into social engagements outside of work which they don’t want to attend.
Make sure your teen knows the policies of the company they work for, including grievance policies. You should also ensure they are aware of creating boundaries between work and personal life, and that it is OK to have them.
Create a safe space for your teen to talk about work, and pay attention to anything they say which sounds like a senior colleague is being inappropriate or they are put into unsafe situations with customers.
Saving summer job cash
Under-18s can access savings accounts for children, so if they already have a Junior ISA it’s a great idea to encourage them to save some of their summer job earnings into it. If they don’t yet have an ISA or savings account, now is the time to talk to them about the importance of creating a financial safety net early on, and to help them find a bank account that suits them.
Some parents also choose to use their teen’s first earning opportunity as a way to teach them about life skills. Take some time to explain what their payslip means, how National Insurance works, and tax basics. You might also help them learn about budgeting, breaking down their weekly or monthly earnings into savings and spending pots based on their expenses.
Some of the brands and websites we mention may be, or may have been, a partner of MoneyMagpie.com . However, we only ever mention brands we believe in and trust, so it never influences who we prioritise and link to.