Term Time Working

Term Time Working Arrangements In SMEs

Term time working can be an effective way of supporting employees with school age children. However, grandparents involved in childcare may also wish to scale back their working time to have the school holidays as time off. Term time working arrangements might also appeal to some employees without childcare responsibilities (for example the spouse of a teacher looking to enjoy more time off with their partner). However, for small and medium-sized businesses, they can present operational, resourcing, and cost challenges if not managed carefully.

Your business model may also require term time working arrangements, for instance if your employees work in an education environment you will only want them to work and be paid during term time.

This guidance explains what term-time working is, how requests should be handled, and the key legal and practical issues SME owner-managers need to consider before agreeing to such arrangements.

What Is Term Time Working?

Term time working is a form of flexible working where an employee works only during school term times and does not work during some or all school holidays. It is most commonly associated with parents, but requests may also come from:

Term time working is not an automatic right. It is a request that must be considered properly, rather than something employers are required to grant.

Who Can Request Term Time Working?

A request for term time working is treated as a statutory flexible working request.

To be eligible, the employee must:

Dealing With A Term-time Working Request

An application to work term-time only is essentially a request for flexible working and can therefore be made by any employee from day one of employment.

When in receipt of a flexible working request you, as the employer, you must:

Best Practice for SMEs

If the request is approved, it will usually result in a contractual change, meaning the employee’s contract should be updated or varied in writing.

When Can a Term-Time Working Request Be Refused?

Employers may refuse a request for one or more of the statutory business reasons, including:

For SME owner-managers, it is important to clearly explain:

Employment Rights Act
SMEs should be aware that the Employment Rights Act will introduce a requirement for the employer to explain, in writing, why their refusal is reasonable i.e. justify the reason(s) they are relying on for refusal. The change is scheduled to be introduced during 2027.

Appeals

Although there is no strict legal requirement to offer an appeal, ACAS guidance recommends allowing one. Offering an appeal:

Any appeal should be handled reasonably and within the overall statutory timeframe.

Avoiding Discrimination Risks

From the employee point of view the right is simply to be able to request flexible working and the employer has a duty to consider the request fairly. The legislation, as already outlined, provides reasons an employer can rely on to refuse a request. It is generally women who have responsibility for childcare arrangement and therefore most requests for term time working are likely to come from women who want to find a compromise between work and childcare arrangements. Therefore, refusing a request can sometimes give rise to indirect sex discrimination claims.

To ensure there is no risk of discrimination a decision to refuse a request for term time working should not be rushed:

Indirect discrimination may be justified, but only where the decision is a proportionate means of achieving a legitimate business aim.

Practical Considerations for Term Time Working in SMEs

Term time working arrangements can take different forms, such as:

Any agreed arrangement should be clearly documented, including:

Many SMEs require employees who have a term time working arrangement to notify them of term dates for the next academic year before the end of the current academic year to support planning.

Hours of Work and Annualised Hours

Term time workers often work full-time hours during term time, but where you and your employee have agreed a more fluid working pattern you may consider using an annualised hours arrangement, where:

Employers must still comply with Working Time Regulations, including the 48-hour weekly limit unless the employee opts out.

Pay Arrangements for Term-Time Workers

The most common and practical approach is for term time workers to be paid in equal monthly instalments. This approach provides a consistent income throughout the year, including school holidays for the employee and simplifies payroll administration for the employer.

Holiday Entitlement and Term-Time Working

Holiday entitlement for a term time worker is pro-rated based on hours and weeks worked in the year. The 12.07% accrual method is regularly used for these workers.

In practice holiday entitlement is usually taken during school holidays with any additional time off beyond holiday entitlement taken as unpaid leave. The statutory holiday entitlement of 5.6 weeks accrues during the paid weeks. You may choose to limit the entitlement to the 5.6 weeks but can top that up to continue to accrue during the unpaid weeks. If you do that the additional entitlement would be regarded as company rather than statutory entitlement and can be dealt with outside the statutory rules.

Most term time working arrangements involve working during term time and taking holiday entitlement or unpaid leave during non term weeks. Therefore the majority of arrangements prevent holiday being taken during term time. Whether you will allow holiday to be taken during term time or not there should be clear agreement in advance of the working arrangement starting to avoid disputes later.

Key Tips for SME Owner-Managers

Need Support?

Term-time working arrangements can be difficult to structure, particularly in small businesses where cover and flexibility are limited. Taking advice before agreeing terms can help you avoid disputes, ensure compliance, and protect your business.

If you have a question about reviewing or implementing a term time working arrangement Speak directly with our CIPD-qualified HR expert with 30+ years’ experience.

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