How to manage annualised hours contracts

Author: Rob Davies, Squire Patton Boggs

XpertHR editor: Susie Munro

Summary

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• Decide whether an annualised hours scheme is appropriate for your business needs.
• Calculate the number of hours to be worked in a year.
• Consider the suitable ratio of core to non-core hours.
• Put in place a process for notifying employees of when they are required to work.
• Notify employees of their duty to carry out work under their annual hours contract and the consequences of failing to do so.
• Manage the non-core 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 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.