Many small businesses are risking damaging compensation claims because they are treating part-time workers as “second class employees”, a legal specialist has warned.

Mark Thompson, head of the legal team at the Associa Employment Service, said that many firms are not yet complying with updated rules on part-time working which became law in 2000.

Under the regulations, part-time workers are now entitled to the same hourly rate of pay, company pension schemes, annual leave and sick pay as their full-time counterparts.

The law also stipulates that part-timers should be entitled to share options and must be treated equally when a business is organising training for its workforce.

Thompson warned that companies that do not comply with these laws are at serious risk of being taken to court by unhappy part-time workers, with a recent case of this nature leading to an employee being awarded compensation of over £50,000 after being unfairly treated.

With the number of students looking for part-time work set to soar this week due to the start of the new university term, Thompson said the problem will spread significantly, particularly in bars and shops.

“In most cases, part-time workers cannot be treated any differently than full-time staff on key terms and conditions, such as holiday allowances, pension arrangements, redundancy payments and the right to claim unfair dismissal.

“Tribunals are becoming increasingly alive to the claims of part-time workers.

“Pub landlords and retailers could be most at risk, as these businesses are most likely to take on part-time staff to cover busy periods,” he said.

The apparent lack of awareness among small firms of regulations that are three years old is a particular concern due to the amount of new rules that have been introduced recently.

As well as flexible working rules, a rise in the minimum wage and equal pay questionnaires, it looks likely that employers will have to provide the same rights to temporary staff as their permanent counterparts.

Thompson has issued ten top tips for firms who are struggling to deal with the part-time worker regulations. They are:

Reorganising hours – part-timers shouldn’t be treated less favourably than full-timers when rotas are decided or changed.

Promotion – part-time status should not be used as an excuse or barrier for promotion to a position, whether the post it full or part-time.

Pay – part-timers should receive the same hourly rate of pay as full-time workers.

Overtime pay – once they have worked more than the normal full-time hours, part-timers should be paid the same hourly rate as their full-time colleagues.

Share options – part-timers should be given a proportionate involvement in share options.

Sick pay – employers should calculate sick pay the same, whether a worker is full or part-time. However, statutory sick pay (SSP) may not apply to certain part-timers who are not earning over the national insurance earnings limit.

Pensions – part-time workers should have the same access to pension schemes as their full-time counterparts.

Training – training should be not be denied to part-time workers.


Redundancy – employers must objectively justify who should be laid off, without treating part-timers less favourably than full-time staff.

Holidays – holiday entitlement for part-timers should be pro rate to that of full-timers.

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