What is time off in lieu?
When employers give employees paid time off instead of paying them for overtime, it’s known as ‘time off in lieu’. There is no statutory or legal right to TOIL being made available to workers. Rather, they agree the terms of it with their employer, and it usually has to be approved by a manager.
TOIL helps organisations to reward their people for hard work, while providing better work-life balance, reduced burnout and greater flexibility.
Things to know
- Time off in lieu is an arrangement where an employee takes paid time off work instead of receiving overtime pay for extra hours or days they’ve worked
- Time off in lieu is not a legal right for workers, it’s agreed with employers
- Generally, all employees who work overtime can be eligible for and benefit from TOIL, whether full-time, part-time or temporary
- It makes sense for time off in lieu policies to include the date by which it needs to be taken (the end of the year, for example) and times it shouldn’t be taken, (busy periods, such as Christmas)
FAQs
Do workers have a right to time off in lieu?
No, TOIL is an agreement between employers and employees.
Can all employees benefit from time off in lieu?
Yes, with the agreement of their employer, full-time, part-time and temporary staff who work overtime can take TOIL.
What are the benefits of time off in lieu?
Workers get to enjoy a better work/life balance, greater flexibility and reduced burnout while employers create a more engaged, motivated and loyal team.
Can issues arise with time off in lieu?
Like overtime and leave in general, time off in lieu can be difficult to apportion fairly, record and track if done manually. It can be much easier to manage with the right HR software.
