A complete Time Off In Lieu policy for UK businesses — covering accrual rates, maximum balances, approval processes, and expiry rules. Editable Word format, ready to customise for your team.
TimeTally SoftwareA policy template tells you what the rules should be. TimeTally enforces those rules automatically — tracking TOIL accrual when timesheets are approved and letting employees book TOIL leave through the same workflow as annual leave.
A complete policy covering every aspect of TOIL — customise the bracketed sections to match your business rules.
Which employees are eligible for TOIL, and whether it applies to all overtime or only pre-authorised overtime
Configurable TOIL accrual rates — 1:1, 1.5:1, or 2:1 — with options for different rates at evenings, weekends, and bank holidays
How overtime must be pre-approved, and how TOIL accrual is confirmed — preventing unauthorised TOIL disputes
Cap on how many TOIL hours can be accrued, and expiry rules for TOIL not taken within a specified period
The process for employees to book TOIL leave, minimum notice periods, and manager approval workflow
Whether unused TOIL is paid out on termination, forfeited, or subject to a deduction
Informal TOIL arrangements are the source of most disputes. A clear written policy prevents all of the most common problems.
Without a written policy, employees and managers often disagree about how much TOIL has been accrued. A clear accrual rate and authorisation process eliminates ambiguity.
Uncapped TOIL balances represent a real financial liability. A maximum balance cap — defined in the policy — keeps exposure manageable and predictable.
If TOIL is used inconsistently (some employees can bank indefinitely, others can't), you risk discrimination claims. A written policy ensures consistency.
The Working Time Regulations require adequate records of working time. A TOIL policy that includes record-keeping obligations helps demonstrate WTR compliance.
The template sets out your TOIL rules. TimeTally enforces them — accruing TOIL automatically from approved overtime, maintaining live balances, and handling TOIL leave requests through the same approval workflow as annual leave. From £2/employee/month.
When a timesheet is approved and it includes overtime, TimeTally accrues the correct TOIL balance automatically — no manual calculation, no spreadsheet lookup, no disputes about how much was earned.
Employees submit their overtime hours via the iOS app. Once a manager approves, the TOIL balance updates immediately. When employees want to use their TOIL, they submit a leave request through the same workflow as holiday.
TOIL leave appears alongside annual leave and shifts in the team calendar. Managers approve TOIL requests with full visibility of team coverage — and can see how much TOIL each employee has accrued before deciding.
Approved overtime hours and any paid-out TOIL balances flow directly to Xero, QuickBooks, or CSV. No manual adjustments, no reconciliation at month-end — just clean data ready for payroll.
A policy template tells you what the rules should be. TimeTally enforces those rules automatically — tracking TOIL accrual when timesheets are approved, maintaining accurate balances, and letting employees book TOIL leave through the same approval workflow as annual leave.
TOIL accrues when overtime timesheets are approved — no manual calculation needed
Employees and managers always see the current TOIL balance — no spreadsheet lookup
Every overtime hour and TOIL booking is recorded — perfect for WTR compliance
£2/employee/month · All features included · No credit card required
Real reviews from TimeTally customers
“Setup was dead simple and the team just got on with it. Got everyone up and running in an afternoon with no help needed. Does everything we need for timesheets and holidays without the faff.”
S.M.
“Has completely changed how I handle timesheets. Used to dread it every week — now it takes me minutes. Really easy to get around and my staff picked it up straight away.”
J.T.
“Started using it just for rotas but quickly realised it does loads more. The timesheets and leave management are great, and it even handles TOIL and overtime which I wasn't expecting. Use it for everything now.”
R.K.
No — TOIL is not a statutory right in the UK. There is no legal requirement to offer TOIL. However, if you agree to TOIL with an employee (verbally, in writing, or through policy), it becomes contractually binding. The Working Time Regulations 1998 apply to TOIL arrangements — employees cannot waive minimum rest requirements through TOIL.
The most common UK rate is 1:1 (hour for hour). Some employers offer 1.5:1 for evening or weekend overtime, or 2:1 for bank holidays. There is no statutory requirement — the rate is a matter of contract or policy. Be consistent: applying different rates to different employees without clear justification can create discrimination risk.
Unlike statutory annual leave, there is no legal requirement to pay out unused TOIL on termination — unless your policy or contract specifically says you will. If your policy is silent on this point, state it explicitly to avoid disputes.
Yes, and it is strongly recommended. An uncapped TOIL balance creates operational risk (the employee takes all their TOIL at once) and accounting liability. A maximum balance of 16–24 hours (2–3 days) is common. Once the cap is reached, overtime is either paid or not worked until the balance reduces.
This is entirely up to your policy. Common approaches are: TOIL must be taken within 3 months of accrual; TOIL expires at the end of the leave year if not taken; or TOIL can be carried indefinitely but is subject to a balance cap. Document your approach clearly and apply it consistently.
The same process as annual leave is usually recommended — employees submit a request, a manager approves or declines based on operational cover. Some employers require TOIL requests to be made with a minimum notice period (e.g., 2 days for a half-day of TOIL, 5 days for a full day). This prevents employees taking TOIL leave at operationally inconvenient times.