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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 Annualised Hours Employment Contract contains the following sections:

1. General 
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 
8. Holidays 
9. Other paid leave
10. Training
11.Sickness Absence 
12. Non-Compulsory Retirement 
13. Mobility 
14. Maternity and Paternity Rights 
15. Pension 
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 
23. Severability 
24. Governing Law and Jurisdiction 
25. Right to Work in the UK

This document is in open format. Fields should be completed where indicated.

Clauses with optional and alternative phrases

Options and alternatives appear in blue font. The way in which this document is designed ensures that it will make sense with or without the optional clauses. Tailor this contract by removing all phrases and clauses which are not relevant to your business. Once you have finished, please remember to highlight the whole document and switch the font colour to black.

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