Annualised hours

Working annualised hours means that you are contracted to work a certain number of hours over a whole year rather than a week.  There is usually a certain amount of flexibility over when those hours are worked and the hours are not spread evenly throughout the year. 

Once the annual hours of work have been agreed, they are usually distributed in a schedule.  Hours are reduced to take into account annual leave and bank holiday entitlements. Some of the hours may be held in reserve to be used when you and your employer agree, or they may all be used within the schedule.

Pros of annualised hours

The main benefits of working annualised hours is that you have a regular guaranteed income rather than fluctuating monthly salary payments, together with a more structured and more predictable work life balance.

Annualised hours can also be used to work longer hours at certain times to allow for shorter hours at other times in line with personal and business needs.

Cons of annualised hours

If you are earning a significant amount of money from overtime, moving to an annualised hours contract could be disadvantageous.  Under most annualised hours systems, overtime is removed and consolidated into basic pay.

You may also be required to work longer hours seasonally which may not fit with your home life.

Is an annualised hours contract right for you?

An annualised hours contract can work for you if the ebb and flow of when you are required to work fits in with your home life.