Annual Hours – Answer to the End of Working Time Opt-Out
The UK’s exemption from Working Time Directive which allows employees to voluntarily work more than 48 hours per week is in danger from a recent European Parliament decision. MEPs voted by 421 to 273 to end the exemption which could see UK’s maximum working hours brought into line with the rest of Europe within three years.
Business leaders have expressed disappointment at the decision, which they say will significantly add to their costs as they struggle to cover the hours their employees will no longer be able to work. Currently employees also benefit from opting-out of the 48-hour per week rule by maximising their earnings.
Employers can limit the impact of this ruling by introducing annual hours working which allows them to calculate working hours over a 12 month business cycle. Annual hours schemes can be attractive to both the business and the employees as it builds in the flexibility to ask employees to work longer hours when the work is required and fewer hours as demand reduces. It also has the advantage of smoothing costs and earnings.
Read Full Post | Make a Comment ( None so far )
