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The Flevy Blog covers Business Strategies, Business Theories, & Business Stories.
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Editor's Note: Take a look at our featured best practice, Training Needs Analysis (TNA) (72-slide PowerPoint presentation). Training Needs Analysis (TNA) goes beyond mere employee preferences or superficial surveys. It's a strategic process focused on aligning training with business objectives and bridging performance gaps. This training PowerPoint will provide you with a comprehensive understanding of TNA, [read more]
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When you’re talking about working hours, we very much don’t all have the same 24 hours in a day. Anyone responsible for staff scheduling, payroll accuracy or working time regs compliance will know that it’s a bit more complicated than this.
We don’t work all day. And we can’t all work the same days. So working out how many working hours in a year for yourself, or your team in the UK, is far from simple. But it’s necessary, because that total needs to be both legally compliant and contractually correct. It’s a number that underpins everything from annual leave entitlement to hourly pay rates and pro-rata calculations for part-timers. Get it right, and your workload planning will be smooth sailing, your leave calendar beautifully balanced and your forecasts spot on. But get it wrong, and you tip the first domino on a run of payroll errors, staff disputes and admin headaches…
According to the Working Time Regulations 1998, a “working hour” is any time the worker is at the employer’s disposal and carrying out work duties.
Assuming 261 working days in a year (365 days minus 104 weekend days – in a leap year you’ll need to add a day) and a standard full-time employment contract with 37.5 hours a week with 28 days’ statutory leave, the total gross number of working hours is 1,957.5. Take off 210 hours for annual leave, and you have a grand total of 1,747.5 net working hours.
You’ve also got to factor in bank holidays, which is potentially another 75 hours. Some employers include these within annual leave entitlement, others offer them on top. Using an annual leave software like Leave Dates can help you easily account for all leave and bank holidays.
The reality for most companies is a bit more complex. Using 1,745.5 hours as your full-time gold standard, the total working hours for any other type of contract will be a percentage of that figure. For example, a part-time worker doing 60% of full-time hours would be working 1,048.5 hours per year (1,747.5 x 0.60 = 1,048.5).
Getting your net working hours figure is the backbone of HR, payroll and compliance for your business. Small business owners/managers, HR teams and payroll admin all need to know this number so that they can effectively:
How many working hours in a year? There is a simple answer – 1747.5 net working hours – but the world of work is never simple. For small business managers, manually tracking variations, managing accruals, and ensuring WTR compliance across a mix of full-time, part-time, flexi-time and even zero-hour contracts is… a lot. Fortunately, Leave Dates can help you to automate everything, so you can put your calculators and spreadsheets away, freeing up time to focus on people instead.
Phil is the co-founder of Leave Dates, the employee annual leave planner. He loves problem-solving and making life easier for small businesses. If you book a Leave Dates demo, he will give you a warm welcome and show you everything that you need to know.
You can download in-depth presentations on Employee Training and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.
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