Understanding term time contracts in the workplace

As summer has begun and the school holidays are fast approaching, we often see more enquiries about the rules surrounding term time contracts.

At this time of year, employers and employees typically seek clarity on legislation and documentation to make sure that employment rights are complied with, particularly within the education and hospitality sector, where seasonal work is more common.

Term time contracts are commonly used in educational institutions and other industries where employees work specific hours or days within defined periods – typically aligned with important and established holiday seasons.

However, in recent years they are becoming increasingly popular for working parents, as they essentially allow for a flexible work pattern based around children’s holidays.

What is a term time contract?

A term time contract, also known as a seasonal contract, is an employment agreement that specifies the working hours or days for employees during certain periods of the year.

It is particularly prevalent in the education sector, where teachers and support staff are employed for the duration of the academic year, with time off during school holidays.

Features of term time contracts

Defined working periods – Term time contracts outline the specific periods during which employees are required to work.

These periods generally align with the academic year, but they can vary depending on the industry or employer.

Fixed hours/days – The contract will specify the exact hours or days that an employee is expected to work during each term.

For example, a term time contract for a teacher may state that they must work from 8:30 am to 4:30 pm on weekdays during term time.

School holidays – One of the significant aspects of term time contracts is that employees are entitled to time off during school holidays.

This feature is particularly desirable for working parents who do not need to take annual leave for these holidays.

Pro-rated pay – As term time contracts involve working only during certain periods, the pay is usually pro-rated.

Employees receive a salary that reflects the actual working weeks or months, rather than a full-year salary.

This means their income may be lower during holiday periods.

Continuity of employment – Term time contracts do not necessarily terminate at the end of each term or academic year.

Instead, they often continue from one period to the next, providing a sense of job security for employees.

Statutory employment rights

Employees on term time contracts have the same statutory employment rights as those on permanent contracts.

These rights include protection against discrimination, the right to a minimum wage, and entitlements to sick leave and maternity/paternity leave.

Accrued holiday entitlement

Employees on term time contracts accrue holiday entitlement during the periods they work.

It’s essential to ensure that employees are given the opportunity to take their accrued holidays during school breaks or other agreed-upon periods.

Equal treatment

Employers must ensure that employees on term time contracts are treated equally to those on permanent contracts, particularly regarding benefits, promotions, and training opportunities.

Any differential treatment without valid justification could be considered unfair or discriminatory.

Variation in contracts

Employers should be cautious when altering the terms of a term time contract.

Any changes, such as altering working hours or increasing holiday entitlement, should be communicated and agreed upon with employees in accordance with proper procedures.

Redundancy rights

Employees on term time contracts have redundancy rights if their position becomes redundant due to a genuine business need.

Employers must follow the appropriate redundancy procedures, including consultation and offering suitable alternative employment where possible.

For more information on term time contracts, get in touch with our expert employment team now.