‘Annualised hours’ working is defined as a system of work whereby the period of time within which employees must work is defined over a whole year. Annualised hours is more appropriate for posts which require high flexibility due to for example, seasonal variations or unpredictable demands.
The following should be considered:
- When is demand likely to be high or low?
- Have the demands been anticipated in order that the appropriate organisation of working hours can be established?
- Is annualised hours the best way of meeting demand, should other arrangements be considered?
- Are there likely to be any effects on equal opportunities, e.g. if there will be a requirement to work extra hours at short notice, this may be impossible to arrange with those who have caring responsibilities
3.1 The annualised hours system is based on an agreed number of annual hours worked as required on a flexible basis. Payment is based on a number of equal monthly payments, that is twelve per year, regardless of the number of hours actually worked in a specific period.
3.2 Annual leave will be included in the total hours to be worked in a year, known as 'committed' hours. In the event of absence due to ill health the number of hours absent will be deducted from the hours to be worked in order that the employee does not suffer detriment. Individuals will be entitled to maternity leave in line with the maternity and childcare booklet (staff only).
3.3 If additional hours have been worked during the year and the line manager can show this is due to increased activity, arrangements can be made to 'buy back' the hours at plain rate, with the individual's agreement. Time off in lieu could be negotiated instead.
3.4 On termination of employment, pay is adjusted to account for hours over or under worked.
3.5 It is envisaged that the total annual hours will be used during the financial year. Where an employee's hours are in deficit at the end of the financial year, arrangements may need to be made to 'carry over' a maximum of one twelfth of the annual hours to the next year.