Changes to the Seasonal Agricultural Workers Scheme (SAWS)

On the 1 January 2007 Bulgaria and Romania joined the European Union. For employers this will mean:

Eligibility to participate in SAWS

Places on SAWS are now available to non-students from Bulgaria and Romania. Applications from other countries remain restricted to students.

Income Tax

The P38(S) procedure is only available where the individual is a student and meets the relevant criteria (see Section 4 of booklet CWG2, Employer Further Guide to PAYE and NICs). Employers should therefore not assume that all SAWS participants meet the necessary requirements. Non-students from Bulgaria and Romania are subject to the standard PAYE treatment.

National Insurance

Students from Bulgaria and Romania working on the SAWS scheme are no longer eligible for the 52 week exemption from payment of National Insurance contributions. For both students and non-students from these countries National Insurance operates as for all other employees. Particular guidance relating to workers coming from the European Economic Area can be found here.

Harvest Casuals

Employees on the SAWS scheme are not eligible for the PAYE and NIC concessions for Harvest Casuals (also set out in Section 4 of booklet CWG2).

Penalties for employing workers illegally

Penalties exist where businesses employ workers illegally, and new penalties were introduced from 1st January 2007 relating to Bulgarian and Romanian nationals that effect employers as well as employees. For more detailed guidance go to www.employingmigrantworkers.org.uk