Amazon has recently announced that working parents and grandparents will have the choice to work on term-time only contracts under a new policy. 

It's a great headline and in lots of ways a great opportunity for Amazon employees. I have the privilege of being employed on a term-time contract here at Anthony Collins and am very grateful for the flexibility that affords me during holiday times. That said, it's always good to look behind the headlines and take the idea out for a spin. To carry on this rather alarming Top Gear analogy, where does it corner well and where are the bumps in the road?

Great cornering

• Following the pandemic, more employees are looking for flexible options and are willing to shop around until they find them. Some organisations are looking at flexible working as part of their ESG offering and others as a way to retain valuable staff. It's good to stay ahead of the game and think about such a policy before others do and tempt your staff away. As a recruitment tool, it could also place you ahead of the pack in a marketplace where employees are increasingly looking at working practices when assessing new roles.
• A term-time contract for working parents who cannot work from home and/or flex their hours could be hugely attractive. The cost of childcare, especially holiday clubs for school-age children, has increased above the rate of wage increases and so holiday provision makes a real dent in annual incomes.
• Holiday cover often becomes a problem when children reach school age as full-year nursery provision falls away. Organisations can lose key staff at that stage when the cost and hassle of holiday cover means they need to seek other employment which gives the necessary flexibility. A term-time only policy avoids this and gives continuity.

Potential bumps

• Annual salaries for term-time only workers will need to be 'smoothed' over the full 12 months in most cases. If not, this leads to patchy payments and can add to financial difficulties. For organisations not used to term-time working, this can take some time to calculate and set up.
• In light of the Harpur case and whilst we wait for any government announcements following their consultation on the case, it's worth remembering that term-time workers are part-year workers and so accrue holiday even when not working; there is not a pro-rata mechanism in the Working Time Regulations 1998 for part-year workers. It's also worth thinking about when holidays can be taken; most term-time only contracts expressly prevent holidays from being taken during working time. Holiday pay is rolled up as part of their monthly salary.
• As with any policy which offers something to one set of employees, it is worth addressing the impact on others who are not included. With parents working term time only, what does this mean for cover during Christmas and the summer? Will it mean that staff who do not have children or haven't requested term-time only contracts always need to cover for them? Obviously, this will depend on the number of staff who work term time only and the impact it has on your workforce. However, it is worth considering as can cause resentment and issues amongst staff so affecting morale.

Term-time only offering is only part of the picture when looking to see what package your organisation is offering to future and present employees. It is just not going to be an option for some roles and so other initiatives such as the four-day week model might be useful. Alternatively, some staff may not be able to afford the hit to their pay packet and so again other perks, such as childcare vouchers, may be more beneficial. Other staff, such as the striking ones at Amazon, might prefer a recognised Trade Union and/or an increased hourly rate. It doesn’t always have to be shiny new policies!

If you would like to address any of the implications of term-time only policy or discuss other ways in which you may be able to make your working practices more attractive for your colleagues, please do contact any member of the team.