TOIL
TOIL (Time Off In Lieu) is time off granted to employees as compensation for overtime worked, instead of receiving overtime pay.
leave-types
Category
intermediate
Difficulty
4 min read
Read time
2025-01-15
Updated
Definition
Short definition
TOIL (Time Off In Lieu) is time off granted to employees as compensation for overtime worked, instead of receiving overtime pay.
Detailed explanation
Time Off In Lieu (TOIL) is an arrangement where employees receive equivalent time off instead of overtime pay for extra hours worked. For example, working 4 hours overtime might entitle the employee to 4 hours off at a later date.
TOIL is particularly common for salaried employees who are not eligible for overtime pay. It provides flexibility for both employers and employees, allowing overtime to be compensated without additional payroll costs.
Some organizations offer TOIL at enhanced rates (e.g., 1.5x for weekend work), similar to overtime pay rates. Clear policies on accrual, usage, and expiry of TOIL are essential to prevent abuse and ensure fairness.
Practical guidance
How it works
Employee works overtime with manager approval. TOIL hours are recorded. Employee requests to use TOIL like other leave. Hours typically must be used within a set period.
Best practices
Require pre-approval for overtime
Set maximum accrual limits
Define expiry periods
Track TOIL balances accurately
Frequently asked questions
Can my employer refuse to let me take TOIL?
Yes, like other leave requests, employers can refuse TOIL at specific times for business reasons. However, they should provide reasonable opportunity to use accrued TOIL before it expires.
Related glossary terms
Annual Leave
Annual leave is paid time off from work that employees are entitled to take each year for rest, relaxation, and personal activities.
Flexible Working
Flexible working is working arrangements different from standard patterns, including remote work, part-time, compressed hours, or flexitime. UK employees can request changes from day one.