Annualised Hours Employment Contract
This Annualised Hours Employment Contract allows for a total number of hours to be agreed between Employer and Employee, which are then worked in variable quantities over the year, allowing flexible working patterns to be used.
Employers must provide workers and employees with a written statement of their main terms and conditions of employment and this is often known as a Standard Form Section One Statement.
This Employment Contract covers the requirements of a Standard Form Section One Statement. This contract complies with these requirements and must be provided to the employee or worker by day one of employment.
Typically, the working hours are divided into hours which are set (e.g. on a rota, and reserve hours) when the Employee can be called into work as needed (e.g. to cover employee absence). Payment is usually in 12 equal instalments. This contract is drafted on this basis.
This contract is of most relevance to industries that have peaks and troughs of demand, and can be a way of getting around the need for overtime. Employers must be careful to make sure that Employees are paid at least the rate of the national minimum wage under such a contract and should take particular care when long hours are worked at times of peak demand.
The total number of hours to be worked in a year, broken down into a weekly figure, is specified in the first part of the Hours clause. The next part of the clause describes ‘core hours’ and ‘reserve hours’. The employee is obliged to work at the times fixed on the rota. For the reserve hours, the employer can call the employee into work as needed (e.g. to cover an employee absence).
The Annualised Hours Employment Contract contains the following sections:
2. Duties and Job Title
3. Date of Commencement
4. Hours of Work
5. Place of Work
6. Work outside the UK
7. Remuneration and Benefits
9. Other paid leave
12. Non-Compulsory Retirement
14. Maternity and Paternity Rights
16. Collective Agreements
17. Grievance Procedure
18. Disciplinary Procedure
19. Staff Handbook and Employment Policies
20. Termination of Employment
21. Data Protection
22. Changes to Terms and Conditions of Employment
24. Governing Law and Jurisdiction
25. Right to Work in the UK
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Clauses with optional and alternative phrases
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