Extra hours at work are sometimes inevitable. Whether it’s staying late to meet a deadline or covering a busy period, these additional efforts shouldn’t go unrecognised. That’s where time off in lieu (TOIL) comes in – a practical way for employees to trade overtime for well-earned rest.
In this blog, we’re diving into what TOIL is, why it’s important for both employees and employers, and how HR Planner makes managing it simple and stress-free.
What is TOIL?
TOIL allows employees to take paid time off as compensation for working extra hours. Rather than receiving overtime pay, employees “bank” those hours to use as leave on another day.
For example, an employee who works three extra hours during a busy shift can use those hours later to take a longer weekend or leave early to attend an important appointment. It’s all about balance and ensuring that effort is rewarded with flexibility.
Benefits of TOIL
TOIL benefits everyone involved. For employees, it offers a fair way to manage work-life balance by providing time to recharge after putting in extra effort. For employers, it’s a cost-effective and flexible alternative to overtime pay, ensuring the business can handle peak demands without breaking the budget.
However, it’s important to get TOIL right. Here’s why:
Challenges and risks
- Misuse or inequality: Ensure TOIL is applied consistently to avoid favouritism or conflicts.
- Burnout risk: Employees may overwork themselves to accumulate TOIL. Monitor workloads to avoid excessive stress.
- Operational impact: Managing time off requests can be challenging during peak business periods.
How to manage TOIL effectively
While TOIL isn’t directly governed by UK law, it must comply with the Working Time Regulations 1998. This means employers need to:
- Ensure employees don’t exceed the average 48-hour work week unless they’ve opted out.
- Provide adequate rest periods, including 11 consecutive hours off in every 24-hour period.
- Monitor workloads carefully to avoid overworking staff.
Clear communication is key. Employees should understand how TOIL works, how it’s tracked, and when it can be taken. A transparent, easy-to-use system makes this much simpler. Employers must also ensure that TOIL arrangements are clearly documented to avoid disputes and ensure compliance with legal obligations.
How can HR Planner help?
HR Planner’s Absence Management features allow for full customisation of leave types and rules. TOIL is a common custom leave type that we see our customers adding into their HR Planner system, allowing employees to both request time be added to their TOIL allowance once earned and allowing them to then book time off using their TOIL allowance rather than their Holiday. The flexibility of HR Planner allows you to set TOIL allowances in hours rather than Days, allowing for short periods of absence – perfect for this type of allowance.
Helpfully, there is a complete record of when employees have earned and used their TOIL allowance ensuring both accuracy and transparency.
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