In the current climate of lay-offs and redundancies, many employers are considering their existing contracts of employment to see whether they can obtain more flexibility from their workforce, as an alternative.


Have you ever considered Annualised Hours working? We have been increasingly asked about Annualised Hours over recent months as a means of dealing with the unpredictable peaks and troughs in work, that are a symptom of the current economic climate.


Annualised hours can be a solution that not only meets the needs of the employer, but can provide many employees with a welcome stability. This is because the employee receives the same pay for each period (normally one month) irrespective of the hours they work in their particular pattern.


Trades unions have also been known to support the introduction of annualised hours, as they see it as providing a regular income stream for their members, when previously this could be eratic with varying shift patterns.


If you are interested in introducing annualised hours, it is always worth considering commissioning the services of an experienced HR professional. However, we have listed below a 4 main points that may assist you in your planning:

• Draw up a resource plan, the working time required and how it will need to be phased throughout the year. The aim of this is obviously to generate the appropriate capacity when it is needed - and to be able to adjust to a lower activity level when the demand is not there.
• Design new shift patterns around the business needs. You will obviously need to keep in mind working time legislation or industry agreements.
• Try to establish annualised hours working, via a consultation process, with your employees and/or trades union and involve them in the discussion of how the needs of the organisation can be met.
• Design a new annualised hours contract of employment that meets all of the above!

Obviously, there is a lot of work to be done before an annualised hours system can be successfully implemented, but the more planning that takes place in advance, the better the results are for all concerned.

Posted by Allison Peasgood