Calculate Time Off In Lieu instantly

Time Off In Lieu (TOIL) is compensatory time off given to employees in exchange for overtime they have worked. Instead of receiving extra pay for overtime hours, the employee accrues equivalent paid time to take as leave at a later date. The term 'in lieu' means 'instead of' — so TOIL is time off instead of overtime pay.

No. There is no UK legislation that gives employees a statutory right to TOIL. It is a contractual arrangement between employer and employee. It must be agreed in writing — either in the employment contract or a separate TOIL policy. However, even with TOIL arrangements in place, the Working Time Regulations 1998 still apply and average weekly hours must not exceed 48 (unless the employee has opted out in writing).

The accrual rate determines how much TOIL an employee earns for each overtime hour worked. At 1:1 (hour for hour), 2 overtime hours earns 2 hours of TOIL. At 1.5:1 (time and a half), 2 overtime hours earns 3 hours. At 2:1 (double time), 2 overtime hours earns 4 hours. Enhanced rates are often used for weekends, bank holidays, or unsociable hours to recognise the inconvenience.

TOIL expiry depends entirely on the terms agreed between employer and employee. Many employers set a deadline — typically 3 to 6 months from when the TOIL was accrued — after which unused TOIL is forfeited. There is no legal requirement for TOIL to carry over (unlike statutory annual leave). Any expiry terms must be clearly set out in the TOIL policy or contract.

Yes. Even when an employee takes TOIL instead of overtime pay, the overall pay package must still meet NMW requirements. If giving TOIL rather than pay means the employee's effective hourly rate drops below the applicable NMW rate for the hours actually worked, the employer is in breach. Accurate timesheet records are essential to demonstrate compliance.

Overtime pay gives the employee extra money for overtime hours — typically at a premium rate such as 1.5x or 2x their normal hourly rate. TOIL gives the employee extra time off instead. Both are alternatives for compensating overtime. The choice between them depends on what is agreed in the employment contract. Neither is a statutory right — both must be contractually agreed.

Yes, in principle. Zero-hours workers can accrue TOIL if their contract allows for it and if an overtime threshold is defined. However, defining 'overtime' for zero-hours workers can be tricky since there are no guaranteed hours. Any TOIL arrangement for zero-hours staff should be carefully worded in the contract to avoid ambiguity about when TOIL is triggered.

Best practice is to include TOIL arrangements in the employment contract or a separate written TOIL policy. This should cover: whether TOIL is available, the accrual rate, any cap on how much can be banked, the expiry window, and how TOIL requests are made and approved. Without written terms, disputes about TOIL entitlement are difficult to resolve.

Employees request TOIL time off the same way they would request annual leave — usually by submitting a request to their manager in advance. The employer can set reasonable notice requirements and refuse requests during busy periods, provided this is stated in the TOIL policy. TOIL should be deducted from the employee's balance at the point of taking it, not at the point of requesting it.

Employers should keep records of: overtime hours worked (with dates and duration), TOIL accrued per employee, TOIL taken and remaining balances, and any requests and approvals. These records should be kept for at least 2 years (the statutory minimum for pay records). Timesheet software like TimeTally creates this audit trail automatically as part of the normal approval workflow.