Annualised Hours Employment Contract

This Annualised Hours Employment Contract allows a total number of hours to be agreed between Employer and Employee, with those hours then worked in variable quantities over the year. It is designed to support flexible working patterns.

Employers must provide workers and employees with a written statement of their main terms and conditions of employment (often known as a Standard Form Section One Statement).

This Employment Contract covers the requirements of a Standard Form Section One Statement and must be provided to the employee or worker by day one of employment.

How annualised hours typically work

Typically, the agreed annual hours are divided between set hours (for example, on a rota) and reserve hours when the Employee can be called into work as needed (for example, to cover absence). Payment is usually made in 12 equal instalments, and this contract is drafted on that basis.

Where this contract is most useful

This contract is often used in industries with peaks and troughs of demand, and can be a way of reducing the need for overtime. Employers must take care to ensure that Employees are paid at least the rate of the national minimum wage under this type of arrangement, particularly where long hours are worked during peak demand.

What the contract covers

• Core terms including duties/job title and commencement date
• Hours of work (including how hours may vary over the year), place of work, mobility and work outside the UK
• Pay and benefits, holidays, other paid leave, training and sickness absence
• Maternity and paternity rights and pension
• Non-compulsory retirement and collective agreements
• Grievance and disciplinary procedure, and staff handbook/employment policies
• Termination, data protection, changes to terms, severability, governing law and right to work in the UK

Annualised Hours Employment Contract is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.