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A Compressed Hours Employment Contract allows an employee to work their total contracted hours over fewer working days. For example, a full-time employee might work 37.5 hours across four longer days instead of five standard days. This arrangement provides greater flexibility while maintaining the same total weekly working hours and pay. The contract outlines the agreed schedule, start and finish times, rest breaks, and any arrangements for flexibility or overtime.

Under a Compressed Hours Employment Contract, the employee’s pay and annual leave entitlement remain the same as those of a full-time employee working standard hours. However, because the working days are longer, a single day’s absence or annual leave will usually count as a full day rather than part of a day. Overtime is typically payable only when the employee works beyond the total contracted weekly hours, not merely beyond a longer daily shift. The agreement should make these conditions clear to ensure fairness and compliance with working time regulations.

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