Term Time Working: Guide for Employers

Term-time only working is a type of flexible working that, if suitable for a business, can widen its prospective pool of talent.

An employee on a term-time only contract will work during the school term and be off during the school holidays. This means that it may be an appealing ​option for working parents employed by any business. ​Additionally, it can be beneficial for a business if quiet periods coincide with the school holidays and there is less demand for work.

In this guide for employers, we look at the practical considerations of adopting term time working and look at how to handle requests for a term time flexible working arrangement.

 

What is term time working?

 

A term-time contract is a type of employment contract that specifies that an employee will only work during specific periods, typically corresponding to school or university terms. Term-time working can take a variety of forms which may include: working during term times only; not working during the summer holidays only; or not working during the main school holidays but working during the half term weeks.

This means that the employee will have extended periods of time off during school holidays.

Term time contracts are common in industries that cater to students, such as education and hospitality. They can provide a flexible working arrangement for employees who are students themselves, or who have other commitments during the school holidays.

Term time contracts can also offer flexibility for parents with children who are currently in education. It means that they can work while the child is in school during the term, and then be available for childcare purposes during the school holidays.
This can mean that individuals who would otherwise be excluded from the workforce are able to find full or part-time employment, an arrangement that also opens up the talent pool for employers.

 

How to deal with a request for term time working

 

Flexible working is fast becoming a desirable employee benefit and employers may find that it’s not only working parents requesting term-time only contracts or similar arrangements. Anyone with over 26 weeks employment can submit a flexible working request. By law, ​formal requests for flexible working must be thoroughly considered and employers need to follow a process when responding.

There can be benefits to both the business and the employee, but all requests must consider the needs of the business.

An application to work term-time only is essentially a request for flexible working and can therefore be made by any employee who has accrued 26 weeks service.

Obviously, a term-time working arrangement will predominantly appeal to parents of school age children. However, grandparents involved in childcare may also wish to scale back their working time to have the holidays off. Term-time arrangements might also appeal to some employees without childcare responsibilities (for example the spouse of a teacher looking to enjoy more time off with their partner).

If you receive such an application you must deal with the request in a reasonable manner and within a reasonable period. The Regulations state that you must deal with any request within three months (although this may be extended if the employee agrees).

The ACAS Code of Practice sets out a simple recommended procedure. It will usually be appropriate to hold a meeting with the employee to discuss the request (allowing them to be accompanied by a colleague or Trade Union representative if they wish).

It is good practice to provide the employee with a written outcome. It is also important to remember that, where a new working pattern is agreed, any change will be a contractual variation and an updated contract, or letter varying the contract, should be issued to the employee.

 

Can you refuse a request for term time only working?

 

It is important to remember that the right to request flexible working does not create a right to work flexibly or part-time. The only obligation on you, as the employer, is to consider the request properly.
Under the Regulations, there are eight prescribed grounds on which you can refuse the request, which include: the burden of additional costs, detrimental effect on ability to meet customer demand, inability to reorganise work amongst existing staff, detrimental impact on quality, and detrimental impact on performance.

If you refuse a request, you will need to be clear about the reasons or reasons you are relying on and explain why you are unable to accommodate a term time working pattern. It may be that you cannot find sufficient cover for the employee’s duties during the holidays or, for example, the additional overtime or agency costs of providing such cover would be prohibitive.

The legislation does not expressly require you to allow an employee to appeal against the rejection of their flexible working request. However, the ACAS Code suggests that employees should be allowed to do so and we would usually recommend that you do. Any appeal should be dealt with in a reasonable manner and within the three month time frame.

 

What are annualised hours?

 

A term-time working arrangement is usually on the basis that the employee will work full time during the term-time. But what if the employee wants to work part-time or flexible hours during term-time? This can throw up issues regarding hours of work, payment and holiday entitlement.

One solution may be to introduce an annualised hours term into the employment contract where the employee’s working hours are calculated on an annual basis and the employee then works those hours at times stipulated by you during the year (giving a greater degree of certainty).

It is important to remember that the maximum 48 hour working week still applies to employees who work during term-time only (unless they sign an opt-out agreement). Stricter limits on working time may apply if the employee is involved in night work or very strenuous activities.

 

Risks for employers

 

Unlawful discrimination claims

Although there is no right to term-time working, refusal in certain circumstances could constitute indirect discrimination on grounds of sex.

As more women than men bear the principal burden of child care, refusing a request on these grounds could give rise to a claim of indirect sex discrimination. However, indirect discrimination can be justified if it is a proportionate means of achieving a legitimate aim.

Having a blanket ban on term-time working is risky and may expose your organisation to claims. Instead, you should carefully consider each request on its merits. How, with particular reference to the work you do, will you justify your decision to turn down the request? What is the legitimate aim you are trying to achieve? How and why does this outweigh the potentially discriminatory effect on the individual?

 

Calculating and making salary payments

It is of course open to you to determine how a term-time worker will be paid. However, the simplest method is to pay the employee’s annual salary in equal monthly instalments and, in practice, most employees will prefer a regular income throughout the year.

 

Annual leave entitlement for term time only workers

One of the trickiest issues with term-time working is annual leave, and how and when this should be taken. In Brazel v Harpur Trust, the Supreme Court confirmed that the amount of leave to which a term-time worker is entitled should not be pro-rated to that of a full-time worker. The decision confirms that the alternative approach, adopted by many employers, of granting term-time workers annual leave equivalent to 12.07% of hours worked over the year does not always give accurate results and should not be used.

An employee who works only during term-time will usually take their holiday entitlement during the school holidays. A term-time only employee will effectively be taking unpaid leave for the difference between the time-off they actually take and their paid holiday entitlement.

You will need to consider whether a term-time only employee will be allowed to take holiday during term-time. You don’t have to agree to this but a more flexible approach is to grant annual leave during term-time at your discretion and require the employee to make up the lost hours at times agreed. You will also need to consider whether the employee is entitled to take off public holidays (although, in practice, most public holidays will already fall within the school holidays).

An agreement from the employee to notify you in advance of the new academic year is essential to allow you to plan appropriately.

 

Documenting the arrangement

The terms of any working arrangement should be detailed in an employment contract, as this sets clear expectations and protects those entering the agreement.

A term-time only employee will require a specific contract that details their working hours, holiday allowance, salary, and other important information that applies to them.

Ideally the arrangement agreed should be specified clearly within the employment contract (for example, whether the employee will work during half terms or not and how many weeks the employee will be expected to work during the academic year). For payment purposes you may want the employee to guarantee the number of weeks they will work during the year. It is also a good idea to include provision within the employment contract for the employee to notify you of the term dates for the following academic year by a certain period in advance of that new academic year starting.

 

Inclusivity

A further consideration for employers is how to nurture and maintain an inclusive company culture when staff are working to different schedules. This could require training and development to be applied in stages, important business updates to be accessible anywhere via HR software, or work socials to be timed accordingly. Inclusivity can fuel a happy and productive workforce and increase staff retention; so whether you’re managing a hybrid team or juggling a mixture of working arrangements, it’s worthwhile having a strategy.

 

Need Assistance?

 

DavidsonMorris’ employment law specialists are experienced in all aspects of workforce management, including the use of different types of working arrangements such as term time contracts. For advice on implementing flexible working and what this means for employee entitlements, contact us.

 

Term Time Working FAQs

 

What is term time working?

Term time working is an arrangement where an employee works only during school terms, with time off during school holidays. This can be particularly beneficial for parents or guardians who need to align their work schedule with their children’s school calendar.

 

Is term time working a legal right for employees in the UK?

Term time working is not an automatic legal right. However, employees can request it under the statutory right to request flexible working. Employers must consider these requests seriously and can only refuse them for specific business reasons.

 

How should employers handle requests for term time working?

Employers should have a clear and fair process in place for handling flexible working requests, including term time working. It’s essential to assess the impact on the business and communicate openly with the employee about the feasibility of their request.

 

Can term time working be offered on a part-time basis?

Term time working can be either full-time or part-time, depending on the needs of the business and the employee. The arrangement should be clearly defined in the employment contract.

 

What happens to an employee’s pay during school holidays?

Pay arrangements for term time workers can vary. Some employers spread the pay evenly across the year, while others pay only for the weeks worked during the term. It’s important to clearly outline the pay structure in the employment contract.

 

How can employers ensure business continuity during school holidays?

Employers can plan ahead by cross-training staff, hiring temporary workers, or redistributing workloads. Effective communication and planning are key to ensuring that business operations are not disrupted during these periods.

 

Are there any tax implications for offering term time working?

Term time working itself does not have specific tax implications, but it’s essential to ensure that payroll is correctly managed, particularly if pay is averaged over the year. Employers should seek advice from a payroll specialist if they are unsure.

 

Can an employer terminate a term time working arrangement?

An employer can terminate or alter a term time working arrangement if there is a legitimate business reason, but this must be done in line with the employee’s contract and following proper consultation. It’s advisable to have a review clause in the contract to assess the arrangement periodically.

 

What should be included in a term time working policy?

A term time working policy should include details on eligibility, the application process, how pay will be calculated, expectations during school terms and holidays, and the procedure for reviewing or terminating the arrangement.

 

 

Glossary

 

 

Term	Definition
Term Time Working	A work arrangement where employees work only during school terms, with time off during school holidays.
Flexible Working	A broad term for working arrangements that differ from the standard working hours, including part-time, job sharing, and remote working.
Statutory Right	A legal entitlement provided by law, such as the right to request flexible working.
Employment Contract	A formal agreement between an employer and employee outlining the terms and conditions of employment.
Business Continuity	The ability of a business to maintain essential functions during and after a disruption, such as staff absence.
Payroll	The process by which employees are paid, including the calculation of wages, tax deductions, and other financial aspects.
Pension Contributions	Payments made into a pension scheme by an employee and/or employer, which contribute towards the employee’s retirement fund.
Temporary Workers	Employees hired on a short-term basis to cover periods of increased workload or staff absence.
Cross-Training	Training employees to perform tasks outside their usual job roles to ensure flexibility and coverage within the team.
Review Clause	A provision in an employment contract that allows for the periodic assessment and potential modification of working arrangements.
Legal Framework	The system of laws and regulations that govern employment practices, including term time working.
Employee Retention	The ability of a company to retain its employees and reduce turnover.
School Terms	The periods during the year when schools are open, typically divided into three terms: Autumn, Spring, and Summer.
School Holidays	The periods during the year when schools are closed, including Christmas, Easter, and summer holidays.