Comparison · 2026/27
Term-Time-Only Contract vs Annualised Hours
Both term-time-only (TTO) and annualised hours contracts spread pay unevenly against hours actually worked, but for different reasons — TTO follows the school calendar, while annualised hours flexes to seasonal business demand. This guide compares how pay, holiday accrual and job security work under each.
At a Glance
| Feature | Term-Time-Only | Annualised Hours |
|---|---|---|
| Weeks worked/year | ~38-39 | Up to 52, flexed |
| Typical sectors | Education | Retail, logistics, care |
| Pay spread | Even over 12 months | Even, based on annual total |
| Holiday pay method | 12.07% accrual (irregular hours) | Standard 5.6 weeks (if regular) |
| Schedule predictability | Follows published school calendar | Set by employer rota, agreed limits |
| Redundancy protection | Standard, after 2 years | Standard, after 2 years |
How Term-Time-Only Pay Works
Most TTO employers calculate an annual salary based on the hourly rate multiplied by hours worked across the school year, then divide it by 12 to give a level monthly payment — so pay continues through the summer break even though no work is done. The alternative, paying only in the months actually worked, is less common because it creates large income gaps that make budgeting difficult for staff.
Since the Harpur Trust v Brazel case and the 2024 regulatory fix, TTO staff (as part-year, irregular-hours workers) accrue holiday pay at 12.07% of hours actually worked in each pay period, which is then paid either rolled into salary across the term weeks or as a separate holiday pay calculation — schools and academy trusts vary in which method they use, and both are lawful provided the underlying accrual is correct.
How Annualised Hours Contracts Work
An annualised hours contract fixes a total number of hours for the year (for example 1,824 hours, equivalent to a 35-hour week averaged over 52 weeks) but lets the employer schedule those hours unevenly to match seasonal demand — more hours in a retailer\'s peak trading weeks, fewer in the quiet post-Christmas period. Employees are still paid a level monthly salary based on the average, smoothing income even though actual hours worked vary week to week.
Because the working pattern is usually agreed in advance (often via a published rota some weeks or months ahead), annualised hours workers with a regular, if uneven, pattern typically accrue standard statutory holiday of 5.6 weeks calculated as normal. If hours are genuinely unpredictable rather than merely uneven, the same irregular-hours holiday accrual rules used for TTO staff may apply instead.