At its simplest, the annualised hours contract is illustrated in the diagram below:

 

Annual Hours Calculation - example based on an average 40 hour week, with 8 Bank Holidays and 25 days Annual leave:

The Committed Annual Hours - which are the maximum hours which an employee is contracted work in a scheme year - are often divided into Rostered Hours - those which are listed on the deployment roster - and Reserve Hours - which may be used (typically) to cover for the short-term absence of colleagues.

Assuming Rostered Hours of 1,760 hours and Reserve Hours of 63 hours per year, this can be represented as:

In some cases contracts also include other categories of hours - by sub-dividing the Committed Hours - to include, for example, hours for training and/or personal development.

Assuming 40 hours p.a. are dedicated to training/development, this can be represented as:

The hours allocated for training/development, although shown as being "owned" by the individual, are more often available to be deployed across the workforce.  Thus the hours shown may be used to cover either the training and development needs of the individual or of a colleague by covering the shift to which the colleague had been deployed.

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