Presented as an alternative to paid overtime, TOIL may be a popular option for employees who want to take time off without eating into their holiday allowance. In this situation, addressing why employees have to continually work extra hours is paramount, as otherwise overwork could lead to burnout and stress-related absence issues. We would recommend that before an employee is eligible for TOIL they have to inform and agree with their manager that there’s a need for them to work the extra hours. Offering time off in lieu to employees is a great way to ensure output doesn’t dip during busier periods. Synonym Discussion of toil. This is known as ‘time off in lieu’. All rights reserved. Minimum TOIL taken at one time – Setting a minimum amount of TOIL that can be taken at once, will not only help you keep track of all the TOIL being taken, it will stop employees just coming in 30 minutes late every day. This can help you to better organise resources for the future to ensure you always have enough people on hand. Annual Leave. This could annoy other employees who just think they … You don’t need to create a new written contract every time the employee wants time in lieu, only upon the initial agreement. Take the stress out of HR with help from our friendly experts and easy to use HR software. When it is used effectively, TOIL offers a logical, fair, and mutually beneficial solution to periodic or seasonal fluctuations in staffing demand, and particularly busy or stressful periods. Keep an eye on work rotas and annual leave requests to determine when is the best time for staff to take time in lieu without disrupting the running of the business. Unfortunately, without careful management TOIL can cause issues, such as: If employees are regularly having to work extra hours, it might be that the employer needs to consider whether they are adequately staffed. Leave and Absence; What is TOIL and how does it work? It can also work well for businesses who don’t want to pay additional overtime payments. TOIL is essentially paid leave granted to an employee who has worked in excess of their contractual hours, or over a public holiday which would otherwise have been treated as annual leave. Our HR software automatically calculates an employee’s TOIL allowance from their submitted timesheets and recorded overtime. Take care that the National Minimum Wage requirements are still met when averaged out over the total number of hours worked. However, managing time off in lieu can present some challenges, which I will examine in this post. Reducing employee stress: a guide for SME managers, TOIL being universal (it may not be appropriate for certain roles), The authorisation process for booking the leave, An expiry date for taking any accumulated TOIL, What happens if the contract ends before all accrued overtime is used. One of the biggest issues employers face when it comes to time off in lieu is the accumulation of owed time and how to record it. If the employee is unable or unwilling to take time off in lieu before they leave your business, you’ll be obliged to pay them the equivalent in overtime pay at their standard rate of pay. When an employment relationship ends, the Fair Work Act and Modern Awards require that employees receive certain entitlements in their final pay. Time off in lieu means that any overtime hours the individual works, they can take off from work in addition to their annual leave. TOIL will be taken within six weeks of the overtime being worked. What should a time off in lieu policy include? How to use toil in a sentence. If it’s a case of you needing to regularly have employees work overtime, then there’s likely a more pressing issue. In this guide to TOIL we’ll answer the following questions: We recommend that you create a transparent TOIL policy with scope to change it as and when needed. All rights reserved. Calculating Time Off In Lieu of Payment. Staff can then request time off in lieu which you’ll be able to accept or reject. You can of course use spreadsheets, but HR software like myhrtoolkit is a great solution for this. The concept of Time Off In Lieu ("TOIL") allows an employee to work overtime, and then instead of being paid additional remuneration for working such overtime, the employee is granted paid time off work by their employer, to the equivalent of the overtime worked. ... Phil is a co-founder of Leave Dates, a staff holiday planner to help companies manage their leave and absence more efficiently. In some cases, this could even lead to claims of discrimination if the rules of your TOIL policy are applied unevenly. An employer also needs to ensure that working additional hours to take the time back at a later date does not take their worker below the National Minimum Wage. TOIL is essentially paid leave granted to an employee who has worked in excess of their contractual hours, or over a public holiday which would otherwise have been treated as annual leave. Holiday managers on the system can record TOIL for the staff they manage in hours or fractions of an hour. Employees can easily see the TOIL they have accrued and can request TOIL using the system (or have it booked by a manager). It is important to examine any underlying causes before agreeing to TOIL leave as a solution, as it might be the case that staff are underperforming and not completing tasks on time, perhaps due to absences, lack of motivation, or poor capability performance management on the company’s part.