I have a number of employees that are currently employed on a permanent basis. This is proving to be very problematic because they work very erratic hours. My one employee is often late and takes Friday, Monday or many afternoons off Another employee has various mental issues and I allow him to work very much whatever hours suit him. Then I have one employee who works his butt off and picks up the slack that the other two create.

I would like to shift them all over to being hourly paid. I have no problem with their work as such but I have a serious problem with having to pay them for them not putting in the hours. Of course I will pay them fairly and for the hours that the actually do work.

My questions are:
1. Can I do this?
2. What if they do not agree?
3. What are the implications to PAYE?
4. If I go on the principle of no work no pay should I then increase their hourly rate so as to compensate them for the hours that I would have paid them for leave?