Academies are part of the state sector, but are funded directly from Central Government rather than via an LEA.
Academies are free to set their own terms and conditions, and pay scales for teachers. Many academies adopt a policy of matching existing terms and conditions based on the School Teachers' Pay & Conditions Document and Burgundy Book agreement. However, it should be noted that service in academies need not be recognised in other maintained schools when calculating sickness pay, maternity pay, etc.
Under the standard TUPE (Transfer of Undertakings (Protection of Employment)) Regulations, staff transferring from an existing school to an equivalent post in an academy will have their existing terms and conditions protected. However, where an employee applies for and accepts a new post in an academy, their service will transfer to the academy's terms and conditions.
Almost all academies are members of the Teachers' Pension Scheme, although there is no requirement for them to be so.