WARWICK SU ANNUALISED HOURS GUIDANCE NOTES
GLOSSARY OF TERMS Full Time Staff This is a member of staff who works a minimum of 36.5 hours per week all year round. Part Time Staff This is a member of staff who works less than 36.5 hours per week but works all year round. Term Time Staff This is a member of staff who is contracted to work a certain number of hours during term time only, Term time is usually 3 x ten week terms (a total of 30 weeks per year). Certain staff members will also be contracted to work in some weeks (usually extra 4 or 6 weeks) to cover vacation and this will be detailed in their contract of employment. All year round This term refers to staff who work both during term time and vacation periods, this equates to approx 45 weeks per year taking into account the SU holiday arrangements. Long Service All staff who approach 5 years’ service with Warwick SU will be entitled to an additional 2 days annual leave. This will be prorated accordingly for part time staff and staff who work term time only will have this pro rata entitlement included within their pay.
Please read this booklet in conjunction with the annualised hours policy, which is available on grapevine - the SU staff intranet. 2
This booklet has been designed to answer simple queries about annualised hours and how they are processed at Warwick SU. There is some useful guidance on how to calculate annualised hours. Please ensure you liaise with your Manager or a member of the HR team if you are unsure about any aspect of annualised hours. What are annualised hours? This is a contract whereby an employee is contracted to work a certain number of hours over 12 months of the year. What are the benefits of having annualised hours? This gives the business an exceptional ability to meet the needs of our members, customers and students because members of staff can work according to demand.
BENEFITS FOR WARWICK SU ENSURE THE UNION IS STAFFED ADEQUATELY AT BUSY TIMES OF THE YEAR INCREASES THE ORGANISATION’S RESOURCING FLEXIBILITY INCREASE IN PERFORMANCE OF STAFF DUE TO FLEXIBLE WORKING ARRANGEMENTS
BENEFITS FOR EMPLOYEE FLEXIBLE WORKING PATTERNS DUE TO DIFFERENT DEMANDS AT CERTAIN TIMES OF THE YEAR STANDARD MONTHLY WAGE PAYMENTS CAN HELP TOWARDS GAINING A WORK / LIFE BALANCE
WARWICK SU ANNUALISED HOURS GUIDANCE
ANNUALISED HOURS GUIDANCE
IMPROVED HOLIDAY MANAGEMENT
How do I know if I am on annualised hours? Your contract of employment will state if you are on annualised hours and what hours you are expected to work each year. Staff on Grades 6 and above are expected to work a minimum number of hours each week (this is based on 36.5 hours per week for a full time member of staff). Your Manager will discuss this with you during your Induction. When do Annualised Hours Start? Your annualised hours start from your first day of employment. Warwick SU Holiday year runs from 1st October to 30th September each year. A member of staff who starts part way through a year will have their annualised hours calculated from their start date to the 30th September. How are annualised hours calculated? Please see overleaf for how annualised hours are calculated for Full Time / Part Time / Term Time Only Staff. 3
WARWICK SU ANNUALISED HOURS GUIDANCE
FULL TIME STAFF WHO WORK ALL YEAR ROUND A full time member of staff is paid on the basis of 36.5 hours per week x 52 weeks of the year = 1898 hours. However, because there are different grades of staff who have different entitlements, the annualised hours may vary. Please see figures below for the calculation: Full Time Staff Grades 1-5: Holiday – 20 days plus 15 bank holidays / customary days = 35 Days (7 weeks) Paid Hours - 36.5 hours x 52 weeks = 1898 hours Hours to Work - 36.5 hours x 45 weeks (52 weeks – 7 weeks) = 1642 hours Annualised Hours are 1642 Full Time Grades 1-5 with long service & Grade 6+ but with no long service Holiday – 22 days plus 15 bank holidays / customary days = 37 Days (7.4 weeks) Paid Hours - 36.5 hours x 52 weeks = 1898 hours Hours to Work - 36.5 hours x 44.6 weeks (52 weeks – 7.4 weeks) = 1628 hours Annualised Hours are 1628 Grades 6+ are expected to work a minimum of 1628 hours per year Full Time Grades 6+ with long service Holiday – 24 days plus 15 bank holidays / customary days = 39 Days (7.8 weeks) Paid Hours - 36.5 hours x 52 weeks = 1898 hours Hours to Work - 36.5 hours x 44.2 weeks (52 weeks – 7.8 weeks) = 1613 hours Grades 6+ are expected to work a minimum of 1613 hours per year
PART TIME STAFF WHO WORK ALL YEAR ROUND A member of part time staff will also be contracted to work for a fixed number of hours per year, this will obviously be less than the full time equivalent staff, as long as they are working all year round (45 weeks per year). Example A staff member who works 30 or 25 hours per week all year round Grades 1-5 30 hrs per week x 52 weeks = 1560 hours which are paid 30 hrs per week x 45 weeks = 1350 annualised hours (as holiday has been taken into account) 25 hrs per week x 52 weeks = 1300 hours which are paid 25 hrs per week x 45 = 1125 annualised hours (as holiday has been taken into account) Grades 1-5 with long service 30 hrs per week x 52 weeks = 1560 hours which are paid 30 hrs per week x 44.6 weeks =1338 annualised hours (as holiday has been taken into account) 25 hrs per week x 52 weeks = 1300 hours which are paid 25 hrs per week x 44.6 weeks =1115 annualised hours (as holiday has been taken into account)
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Staff who work less than 45 weeks per year, usually term time and some weeks in vacation These staff members will be contracted to work primarily during the three ten week terms and possibly some weeks to cover vacation. They are paid in 12 monthly instalments. Example 1 - A staff member who works for 30 hours per week for 30 weeks of the year 2 - A staff member who works for 36.5 hours per week for 36 weeks of the year Grades 1-5 1 - 30 hrs per week x 30 weeks = 900 annualised hours 2 – 36.5 hrs per week x 36 weeks = 1314 annualised hours Grades 1-5 with long service A staff member working the hours as above will still have to work the same amount of hours each year due to the nature of being employed primarily during term time. Once they reach long service after 5 years, they will then receive the pro rata holiday allowance for this in their pay (rather than holiday) and HR will communicate this accordingly and the salary will change slightly. Payments for these types of staff In order to ensure that term time only staff get pro rata holiday pay based on the hours they are contracted to work, we work out “hours worked” as a percentage of the “hours worked” by an equivalent full time member of staff (1642 annualised hours)
WARWICK SU ANNUALISED HOURS GUIDANCE
TERM TIME ONLY STAFF
Example Annual full time salary - £18,000 Actual annualised hours to be worked = 1350 Full time percentage – 1350/1642 annualised hours= 82.21% Actual salary 82.21% of £18,000 = £14,797.80 per annum With Long Service Annual Salary £18,000 Actual annualised hours to be worked = 1350 Full Time Percentage – 1350 / 1628 annualised hours (due to long service) = 82.92% Salary – 82.92% of £18,000 = £14,925.60 Difference in pay is £127.80 The actual salary is then divided by 12 to calculate monthly payments. These payments will be processed each month regardless of the monthly number of hours worked by a term time only employee.
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WARWICK SU ANNUALISED HOURS GUIDANCE 6
ANNUALISED HOURS CONTRACTS AND HOLIDAY PAY As all annualised hours are calculated on the basis of the number of hours actually worked by a full time member of staff (1642 hours), this means that holiday pay has already been included in the salary payment figure. It is imperative that all employees work their contracted hours for the year to ensure the correct holiday pay entitlement has been awarded. If members of staff work more than their contracted hours for the year then it is likely that their total holiday entitlement would not have been taken. If members of staff work less than the annual contracted hours, they would have taken more holiday time than they are entitled to. If a member of staff will not be able to make up a deficit of hours by adding it onto next year’s hours or, if their deficit is excessive, then you need to discuss with the individual how this will be dealt with and then communicate this to the HR team. This could involve setting up a repayment plan for staff to repay back the hours owed to the SU. If annualised hours are monitored regularly, managers should be able to work out if any of their staff will be in deficit and look to make up these hours before the end of the annualised hours year (30th September).
Monitoring Hours The SU time and attendance system plays an integral part in tracking employee hours on an annualised hour’s contract. The system provides the number of hours actually worked each day / month and enables Managers to effectively record and manage the number of hours worked throughout the year.
MONTH
ANNUAL HOURS TO BE WORKED
ACTUALLY WORKED
1350 / 12 = 112.5 Per month October
112.5
170
November
112.5
170
December
112.5
100
January
112.5
60
February
112.5
90
March
112.5
130
April
112.5
130
May
112.5
140
June
112.5
40
July
112.5
90
August
112.5
120
September
112.5
140
TOTAL
1350
1380
The difference is 30 hours which the employee has worked over, please see the annualised hour’s policy to see how this is managed.
WARWICK SU ANNUALISED HOURS GUIDANCE
Example – Working out Annualised Hours at the end of each holiday year Annualised Hours are 1350 per year
Example 2 -working out Annualised Hours part way through a year Annualised Hours are 1350 per year MONTH
ANNUAL HOURS TO BE WORKED
ACTUALLY WORKED
1350 / 12 = 112.5 Per month October
112.5
170
November
112.5
170
December
112.5
100
January
112.5
60
February
112.5
90
TOTAL
562.5
590
Hours left to work for the year 1350 – 590 = 760 hours. Managers can then discuss with their staff what hours they still have remaining to work and how they can be managed. Please see the annualised hour’s policy for more information. 7
WARWICK SU ANNUALISED HOURS GUIDANCE 8
HOLIDAY ENTITLEMENT Full Time Staff Grades 1-5 : Holiday – 20 days plus 15 bank holidays / customary days = 35 Days (7 weeks)
Full Time Staff Grades 1-5 with long service & Grade 6+ but with no long service Holiday – 22 days plus 15 bank holidays / customary days = 37 Days (7.4 weeks)
Full Time Staff Grades 6+ with long service Holiday – 24 days plus 15 bank holidays / customary days = 39 Days (7.8 weeks)
Part Time Staff Any member of staff working less than 5 days per week will have their holiday pro-rated, this includes a pro rata allowance of all the bank holiday and customary days Warwick SU offers and this is likely to change each year depending on when these days fall and what days of the week you usually work. Please see your Line Manger in the first instance or a member of the HR team for clarification as to how this is calculated.
What if I work term time only, how do I get my extra 2 days long service? HR will know when staff approach 5 years’ service and will write to inform you that your salary will go up slightly as we cannot deduct time from your annualised hours (as we need you to work) during term time or, for the weeks in vacation you are expected to work, therefore your salary will increase to include pro rata of the 2 long service days.
What if I am term time only, what holiday do I get? Staff who work less than 45 weeks per annum (usually term time only staff) receive pay in lieu equivalent to their proportionate holiday entitlement. This sum is added to their salary and paid throughout the year (so over 12 months, not just for the months they work). The pro rata holiday entitlement includes an element for the annual leave of either 20 days, 22 or 24 days depending on grade and length of service and a total of not less than 15 days pro rata for their bank holidays and customary days that fall over Xmas and Easter, so full time staff actually receive either 35, 37 or 39 days depending on grade and length of service and part time staff receive a pro rata of that. This particular group of staff are only required to work at the SU in the weeks they are contracted to, and they take their paid holiday entitlement in the weeks where their attendance is not required. For e.g, if they work 30 weeks per year, they have the other 22 weeks (up to 52 weeks per year) in which to take their holiday entitlement.
WARWICK SU ANNUALISED HOURS GUIDANCE
ADDITIONAL QUESTIONS
What if I am part time how do I get my extra 2 days long service? HR will write to you and your Manager will pro rata your 2 long service days and inform you of your new holiday entitlement and annualised hours.
What happens if I have worked over my hours in a year? Please refer to the Annualised Hours Policy on grapevine.
What happens if I haven’t worked my hours for the year? Please refer to the Annualised Hours Policy on grapevine.
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WARWICK SU ANNUALISED HOURS GUIDANCE
ADDITIONAL QUESTIONS What if I leave? If employees on grades 1-5 leave part way through a year or at the end of a year, it is necessary to identify whether the employee has worked in excess of their working hours or if there is a deficit. If it is identified that by the leaving date the employee will have worked in excess of their working hours, their Manager needs to agree a working pattern which may reduce their hours until they leave, or agree an overtime payment to be paid at the end of the contract. If the employee has worked less than their contracted hours, the Manager must agree with the employee to work longer hours if appropriate or, an adjustment to their final pay will be made so the SU can recover the overpayment. For both scenarios, this has to be communicated and authorised by the HR Director. What are the additional 15 Bank Holiday / Customary days the SU offers staff? Bank Holidays are 8 days and include: Christmas Day / Boxing Day / New Years Day / Good Friday / Easter Monday / Early May Holiday / Spring May Bank Holiday / Summer Holiday – August The SU offers staff 7 customary days which usually fall over Christmas and Easter. Please refer to your manager for details of these days. Due to individual departmental needs, should any staff work on any bank holiday or customary days you will be compensated for this as per your contract of employment.
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WARWICK SU ANNUALISED HOURS GUIDANCE
NOTES:
If you are interested in finding out more details about annualised hours, please visit Grapevine, the (SU Staff intranet) or ask a member of the HR team.
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www.warwicksu.com
April 2015