How to manage annualised hours contracts
Author: Rob Davies, Squire Patton Boggs
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- Decide whether or not an annualised hours scheme is appropriate for your business needs.
- Consider the suitable ratio of rostered to reserve hours.
- Notify employees of their duty to carry out work under their annual hours contract and the consequences of failing to do so.
- Manage the reserve hours call-in process properly.
- Set out the arrangements for pay and pay frequency.
- Ensure that employees are clear about when, and how much, overtime is payable.
- Keep employees who work under an annualised hours contract up to date with the organisation's news and developments.
- Confirm annual leave entitlement and the procedure for requesting annual leave.
- Ensure that employees are aware of their entitlement to sick pay and the sickness absence reporting procedure.
- Consider whether or not the reference period for the purpose of calculating the average hours worked under the Working Time Regulations 1998 should be extended for employees working annualised hours.