TOIL (Time Off in Lieu)
Also known as: time off in lieu, lieu time, time in lieu
TOIL (time off in lieu) is paid time off given to employees in exchange for extra hours worked, instead of overtime pay.
TOIL — time off in lieu — is leave granted to an employee in return for hours worked beyond their normal schedule, as an alternative to paying overtime. An employee who works three extra hours might bank three hours of TOIL to take later.
TOIL is popular because it costs the employer nothing in extra wages and gives staff flexibility. It works best with a clear policy on how TOIL is accrued, approved, capped, and how long it can be carried before it expires.
TOIL vs. overtime
Overtime pays cash (often at a premium rate) for extra hours. TOIL pays in time off instead. The two can coexist — some hours paid, some banked — but the policy should be explicit so balances and expiry are tracked and extra hours don't quietly accumulate unpaid.
Example
An employee works 5 hours on a weekend project. Under a 1:1 TOIL policy they bank 5 hours of lieu time to take as a half-day plus an hour later in the month.
Frequently asked questions
- Does TOIL expire?
- Usually yes. Most policies require banked TOIL to be used within a set window (for example the same quarter or within three months) so balances don't build up indefinitely. The expiry rule should be written into the policy.
Related terms
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