An increasing number of organisations are using an Annualised Hours approach for organising working time. In an Annualised Hours system, an employee is contracted to work a certain number of hours per year. This is an alternative to the traditional approach of contracting employees to work a certain number of hours per week with any additional time being paid as overtime. Essentially, allocating hours over a one year period rather than one week gives an organisation more scope for efficiently matching business demand. The rules are many and varied and depend on the type of Annualised Hours system, of which there are three broad categories:
- Stable demand (eg. one team required 24 hours a day, 7 days a week)
- Predictable variations in business demand (eg. seasonal peaks and troughs)
- Unpredictable variations in business demand
There are many potential benefits derived from Annualised Hours. For the organisation, these can include, for example, a reduction or elimination of overtime, improved holiday management, and reduced levels of sickness. For the employees,
there is often an improved shift pattern with more usable time off, and an increase in basic pay.
We can explain the basic principles of Annualised Hours and how they can be applied to your organisation's needs.
We can also provide you with examples of Annualised Hour systems and help
you develop annual shift patterns to efficiently match business demand. For more information, contact :