An annualised hours system refers to an arrangement between an employer and their employees, in which working hours are calculated per year as opposed to per week or month. This arrangement allows employers to allocate more working hours to periods where demand is high, and fewer hours where demand is low. This method allows organisations to efficiently handle variations in demand throughout the year. Usually, the core of the arrangement is a set of regular shifts, with some hours left unallocated and subsequently used on an as-needed basis.