Annualised employment contracts

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I'm trying to understand how these employment contracts work so if anyone could help please?

If a contract states that someone works 480 hours over 38 weeks of the year then this roughly works out to 12.5 basic hours per week.

If the employee then does 5 hours overtime per week then how does this work? Does the combined 12.5 hours plus 5 hours overtime come off the 480 hours? What would then happen if the hours ran out with 3 or 4 months to go at the end of the year?

Would the contract be reviewed and more hours added? And how would this affect the monthly salary?

I'm confused!
 
Just says it will be reviewed if the hours ran out? Technically I could work overtime and reach zero hours and then sit at home for the rest of the 12 months but still get paid for the hours I've worked?
 
They go in a "bank" you are either then paid over time or given paid holiday at standard rate depending on company policy.

At the last place I worked that did it, the people that worked in the warehouse were on these type of contract and it was all standard pay till you exhausted the hours in the contract then either put on unpaid leave or given over time depending on how busy they were.
 
Depends entirely on your contract, the business and whether overtime is even given.

You effectively may get absolutely nothing for those overtime hours if they don't pay out or give time-in-lieu for it. Usually a contract should give you some idea of what hours you are expected to work per day, as it does seem a bit strange that your contract only mentions hours over an entire year, as I personally have never encountered that.

It's possibly a bit of misdirection though, as there are plenty of jobs where you might not get paid overtime, but are 'expected' to stay and work beyond the contracted hours. It's not ideal, but its often the way the world works. It sounds a lot like this particular business perhaps expects that, but isn't making it plainly obvious.

You couldn't just keep working hours and then have done enough to stop for a while, because you should have information about hours you are expected to work a day and you would eventually be going beyond what is in the work-time directive.

What is the position out of interest?
 
Its just a way they benefit again

In reality nothing changes but you loose the ability to get toil/flexi, thats how it worked at my previous employment.
 
She regularly works an hour overtime a day making 3.5hrs in total but she has been issued a new contract of employment which is this annualised way of being payed. The council have based her yearly hours on 2.5hrs a day only and say that she should make herself available to work around these 2.5hrs but now not get paid the overtime like she used to. Instead I think it comes off her yearly hours.
 
It's a way of avoiding havitual overtime payments. If she's putting in an extra hour a day she'll run out of hours and either they'll ask her not to come in or pay overtime for the rest of the year.

If her job only needs 2.5 hours then she's creaming 'standard overtime' on top of that, which is what this sort of thing is designed to remove. However, if her job does in fact require 3.5 hours a day then she should negotiate to be paid that.

Imagine if I could be paid for my regular overtime, I could make an extra £9k pa without even trying.
 
Negotiate it with HR stating the job takes 3.5 hours so they'll be leaving a shortfall and see if they want to A: Extend her the hours into the yearly contract or B: Put in an overtime clause or C: Just pay her overtime or be without her when she's worked all the hours.

They're probably trying to coax her into working for free, which is completely unacceptable.
 
lol, come and work where I work, if you don't do daft hours they make you redundo, and they don't pay a penny overtime.

life is harsh, you do the amount of hours you need to do your job very well......if you want to keep it.
 
Is there any employment solicitors on this forum who wouldn't mind checking her new contract over quickly? Thanks.
 
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