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.
This employment contract has a General Data Protection Regulation (GDPR)-compliant data processing clause. After 25 May 2018, employers must use this clause, as employers will not be able to rely on the existing generic consent clauses.
The Pensions Act 2014 introduced a new state pension for people reaching state pension age on or after 6 April 2016, replacing the previous basic state pension and additional state pension and ending contracting out for defined-benefit schemes. This employment contract has been updated accordingly with the removal of the clause referring to the contracting out certificate.
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
8. Sickness Absence
9. Non-Compulsory Retirement
11. Maternity and Paternity Rights
13. Collective Agreements
14. Grievance Procedure
15. Disciplinary Procedure
16. Staff Handbook and Employment Policies
17. Termination of Employment
18. Data Protection
19. Changes to Terms and Conditions of Employment
21. Governing Law and Jurisdiction
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Clauses with optional and alternative phrases
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