Employing family members and voluntary staff

Employing younger family members or volunteers

It is common for businesses to employ young family members or volunteers for part-time jobs or during school holidays.

Legislation
The National Minimum Wage (NMW) does not need to be paid to workers in the family business, so long as they are members of their employer's family and share the family home. The law, however, gives your family members the same rights and protections as other young people and children.

You may not employ young people (voluntary or otherwise):

• for most businesses, if they are under 13 years of age, except in certain professions such
• as modelling and acting
• on a building site
• in a factory
• in a pub
• in a betting shop
• during school hours or continuously during the year

There are also laws on working hours, work breaks and the type of work for those under school-leaving age and those aged 16 and 17 years.

For more information see our guide on employing young people.

You must generally pay young people over 18 years of age the NMW. From 1 October 2004, there is a development rate for workers aged 18-21 inclusive of £4.10 per hour (rising to £4.25 from 1 October 2005 and £4.45 from 1 October 2006), and a rate of £4.85 for those aged 22 (rising to £5.05 from 1 October 2005).

In addition, there is a £3 per hour rate for 16-17 year old workers who are above the age of compulsory schooling. See our guide on understanding National Minimum Wage law.

You must also give employees aged 16 and 17, who did not reach a certain standard of education or training, the right to reasonable time off with pay to study or train for a qualification that will help them reach that standard.

There may also be additional bylaws that apply to your business, such as the number of hours in each day or each week, and the times of day that children can be employed. Your local authority will be able to advise you on these.

Best practice
There are no specific restrictions on volunteering by children in not-for-profit organisations, but it is advisable to follow the rules above for profit-making organisations.

Ensure that your employer's liability and public liability insurance policies cover young people and volunteers under the age of 16.

Subjects covered in this guide

• Introduction
• Family employees - consider your motives
• Family employees - minimising business risks
• Preventing communication breakdowns
• Employing your spouse
• Employing younger family members or volunteers
• Voluntary staff - points to consider
• Voluntary staff - contract rights, benefits and allowances
• Health and safety issues
• Tax reporting requirements - young, old or voluntary staff
• Here's how our business overcame the pitfalls of employing family members

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