TOIL Policy Template UK

TIME OFF IN LIEU (TOIL) POLICY [Company Name] Effective date: [Date] Review date: [Date] Policy owner: [HR / Name] ───────────────────────────────────────── 1. PURPOSE This policy explains how Time Off In Lieu (TOIL) operates at [Company Name]. TOIL is granted to eligible employees who are required to work additional hours beyond their contracted hours, as an alternative to (or in addition to) overtime pay. ───────────────────────────────────────── 2. SCOPE AND ELIGIBILITY 2.1 This policy applies to [all employees / salaried employees / the following roles: [list]]. 2.2 Employees on [annualised hours / flexitime / alternative arrangements] should refer to [separate policy / their line manager] for how additional hours are managed. 2.3 TOIL is not available to employees who are contractually entitled to overtime pay for the hours in question, unless otherwise agreed in writing. ───────────────────────────────────────── 3. WHEN TOIL IS EARNED 3.1 TOIL is earned when an employee works authorised additional hours beyond their contracted working hours. 3.2 Additional hours only qualify for TOIL when they have been: (a) approved in advance by the employee's line manager, OR (b) agreed as necessary due to exceptional operational circumstances and confirmed by the line manager promptly afterwards. 3.3 Ad hoc extra time worked without prior authorisation does not automatically qualify for TOIL. Employees should not assume that working late entitles them to TOIL unless authorised. ───────────────────────────────────────── 4. TOIL ACCRUAL RATE 4.1 TOIL is accrued at the following rate: [OPTION A — Standard rate] 1 hour of TOIL for every 1 hour of authorised overtime worked. [OPTION B — Enhanced rate] [1.25 / 1.5] hours of TOIL for every 1 hour of authorised overtime worked. [OPTION C — Tiered rate] Monday–Saturday, standard hours: 1 hour TOIL per 1 overtime hour Evenings (after 8pm) and Sundays: 1.25 hours TOIL per 1 overtime hour Bank holidays: 1.5 hours TOIL per 1 overtime hour 4.2 Minimum qualifying period: TOIL is only accrued in increments of [15 / 30] minutes. Overtime of less than [15 / 30] minutes does not qualify. ───────────────────────────────────────── 5. RECORDING TOIL 5.1 Overtime hours must be recorded in [TimeTally / the time tracking system / a TOIL log approved by your manager] at the time they are worked or as soon as practicable thereafter. 5.2 It is the employee's responsibility to keep their TOIL balance up to date. Disputes regarding TOIL balances must be raised with the line manager within [4 weeks] of the overtime being worked. 5.3 Employees can view their current TOIL balance at any time via [TimeTally / the HR system]. ───────────────────────────────────────── 6. MAXIMUM TOIL BALANCE 6.1 The maximum TOIL balance an employee may accrue at any time is [X] hours / [X] days. 6.2 Once the maximum balance is reached, additional overtime will be [paid at the standard overtime rate / not accrued] until the balance falls below the maximum. ───────────────────────────────────────── 7. TAKING TOIL 7.1 Employees may request to take TOIL in the same way as annual leave — via [TimeTally / line manager / HR system]. TOIL requests are subject to management approval based on operational requirements. 7.2 TOIL may be taken in blocks of [minimum 30 minutes / half a day / full days]. Smaller increments are [not permitted / permitted with line manager agreement]. 7.3 TOIL should be taken as soon as is reasonably practicable following the overtime worked. Employees are encouraged to take TOIL within [4–6 weeks] of accruing it. ───────────────────────────────────────── 8. TOIL EXPIRY 8.1 TOIL must be taken within [3 months / 6 months] of being accrued. TOIL that is not taken within this window will: [OPTION A] Expire and be forfeited. [OPTION B] Be converted to a payment at the employee's basic hourly rate, at [Company Name]'s discretion. 8.2 If an employee is unable to take TOIL before it expires due to operational reasons (e.g., the company declined their TOIL request), the expiry may be extended at the line manager's discretion, with HR approval. 8.3 Illness: If an employee is unable to take accrued TOIL due to sickness absence, the TOIL expiry date will be extended by the duration of the sickness absence. ───────────────────────────────────────── 9. TOIL AND HOLIDAY PAY 9.1 TOIL is separate from annual leave. Taking TOIL does not reduce an employee's annual leave entitlement. 9.2 TOIL days taken are not counted as sick days, even if the employee is unwell on a day when TOIL was pre-booked. 9.3 Overtime worked (and converted to TOIL) may need to be included in holiday pay calculations if it forms a regular part of pay. [Company Name] will review holiday pay calculations annually to ensure compliance. ───────────────────────────────────────── 10. TOIL ON TERMINATION 10.1 On termination of employment, any accrued and unused TOIL will be: [OPTION A] Paid out at the employee's basic hourly rate as part of final pay. [OPTION B] Expected to be taken during the notice period. Any remaining TOIL balance at the end of the notice period will be forfeited. [OPTION C] Reviewed on a case-by-case basis at management discretion. 10.2 If an employee has taken more TOIL than they have accrued at the date of termination, [Company Name] reserves the right to deduct the equivalent value from final pay. ───────────────────────────────────────── 11. NATIONAL MINIMUM WAGE 11.1 TOIL arrangements must not result in any employee receiving less than the National Minimum Wage for any pay reference period. Where TOIL is offered in lieu of overtime pay, [Company Name] will ensure that NMW compliance is maintained. 11.2 If a TOIL arrangement would cause NMW non-compliance in a given pay period, the employee will receive a top-up payment to ensure the NMW is met. ───────────────────────────────────────── 12. RESPONSIBILITIES Employees are responsible for: • Obtaining advance authorisation for overtime • Recording overtime accurately and promptly • Monitoring and using their TOIL balance within the expiry window Line managers are responsible for: • Approving or declining overtime in advance where possible • Ensuring TOIL records are accurate • Approving TOIL requests within [5 working days] • Monitoring team TOIL balances and encouraging timely use HR is responsible for: • Maintaining the TOIL tracking system • Conducting annual NMW compliance review • Reviewing and updating this policy ───────────────────────────────────────── This policy will be reviewed annually. It does not form part of employees' contracts of employment. [Company Name] | HR Department | [Date]