For working parents, individuals with commitments outside of work or disabilities, and those who simply enjoy having an extended break from working each year, term-time working can be an ideal option. Offering contracts of this type can also be advantageous for employers, especially those whose activities peak during times of the year that coincide with school terms. So, as schools are heading back for a new term, we take a look at the law on term-time contracts.
Term-time working is a permanent style of flexible working that means the employee is only at work during school term times. Exactly when this is can differ across the UK, as different areas have different terms, but it’s roughly 39 weeks of the year. It’s therefore important to check prior to employing anyone on a term-time only contract that their understanding of “term time” aligns with that of the organisation.
How term-time working works in practice will differ from organisation to organisation, and there are a number of choices that can be made, such as:
• restricting holidays to outside of term time only or allowing them to be taken during the term
• spreading the employee’s salary across 12 equal monthly instalments over the course of the pay year, so that employees are not financially worse off during the periods they’re not working, or paying the employee only during the periods that they work
• requiring some work to be performed outside of term time or restricting all work to term time only.
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Benefits of term-time working
For some individuals, term-time working can make a significant contribution to their overall wellbeing; financially, physically and mentally. This in turn can improve their commitment and loyalty to the organisation and put them in the ideal position to perform at their best when they are in work.
It can help employers with work scheduling and the distribution of tasks, especially where summer is a typically quieter time for the employer and so having employees working term-time only avoids them having to make difficult decisions when the need for workers is low.
For those that wish to, term-time working can also permit employers to pay “rolled-up holiday pay”. Under the Working Time Regulations 1998, a worker is a part-year worker if:
“…under the terms of their contract, they are required to work only part of that year and there are periods within that year (during the term of the contract) of at least a week which they are not required to work and for which they are not paid.”
Government guidance on this makes it explicitly clear that workers who receive pay throughout the year are within the definition of part-year workers:
“The regulations require that there must be a period of at least one week ‘for which they are not paid’ which means that it would still be possible for a worker to be paid ‘during’ that period so long as there is no expectation of them working in that period and nor are they receiving payment ‘for’ that period.”
Where the employee’s contract fits that which is set out above, instead of being paid their holiday pay at the time they take leave, their holiday pay can be “rolled up” and paid each time they receive their salary. Some employers may find this a better way to arrange their finances, especially where there may be cash flow difficulties during quieter periods of the year (where, of course, they coincide with the breaks between terms).
Term-time only working can be a significant benefit to both employers and employees. It also gives employees access to a wider pool of people for recruitment and retention and enables them to engage talented individuals who may otherwise have not chosen, or been able, to work for them.
If you are recruiting an employee on a term-time contract, reach out to our HR Documentation team who are able to provide you with the documentation you will need.
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