A Time Off in Lieu (TOIL) policy allows employees to accrue time off for extra hours worked, providing flexibility while ensuring fair treatment and compliance with employment law.

Key Takeaways

  • TOIL accrues for extra hours worked
  • Clear accrual and usage rules essential
  • No statutory requirement but common practice
  • Documentation protects employer position
  • Regular monitoring prevents abuse

Policy Template

1. Purpose

This policy outlines the arrangements for Time Off in Lieu
(TOIL) at [Company Name]. TOIL allows employees to accrue
time off for extra hours worked, providing flexibility while
maintaining fair treatment.

2. Eligibility

All Employees:
- Permanent employees
- Fixed-term employees (pro-rata)
- Subject to manager approval

Excluded:
- Contractors and agency workers
- Employees on probation (unless otherwise agreed)
- Senior management (unless otherwise agreed)

3. Accrual Rules

What Accrues TOIL:
- Extra hours worked outside normal hours
- Weekend working (if not part of normal pattern)
- Bank holiday working (if not part of normal pattern)
- Overtime working

What Does Not Accrue TOIL:
- Normal working hours
- On-call allowances
- Travel time
- Training time

4. Accrual Calculation

Rate:
- 1 hour TOIL for 1 hour worked extra
- Pro-rata for part-time employees
- Rounded to nearest [15 minutes/30 minutes/1 hour]

Example:
- Work 2 extra hours on Saturday
- Accrue 2 hours TOIL

5. Usage Rules

Taking TOIL:
- Must be taken within [X] months of accrual
- Subject to manager approval
- Notice required: [X] days/weeks
- Cannot be used to extend holidays

Booking Process:
1. Request through leave management system
2. Manager approval required
3. Record in system
4. Taken on agreed date

6. Payment

Unused TOIL:
- May be paid on termination (if agreed in contract)
- Or may be lost if not used within timeframe
- [Specify company policy]

Payment Rate:
- Normal hourly rate
- Or average hourly rate (if variable hours)
- Tax and National Insurance deducted

7. Expiry

TOIL Expires:
- [X] months after accrual
- On termination of employment
- If not used within timeframe

Expired TOIL:
- Lost if not used within timeframe
- No payment for expired TOIL
- Employee responsibility to use

8. Special Circumstances

Long-Term Absence:
- TOIL continues to accrue
- Usage may be delayed
- Manager discretion

Redundancy:
- Unused TOIL paid on termination
- Or taken during notice period
- By agreement with employer

Termination:
- Unused TOIL paid on termination
- Or taken during notice period
- By agreement with employer

Implementation Checklist

Policy Development

  • Accrual rules defined
  • Usage rules established
  • Expiry policy set
  • Policy documented
  • Legal review completed
  • Management approval obtained

Communication

  • Policy document prepared
  • Employee handbook updated
  • Manager training scheduled
  • Employee communication plan
  • Q&A session planned

System Setup

  • TOIL tracking configured
  • Accrual calculations set up
  • Usage tracking configured
  • Expiry alerts set up
  • Integration with payroll

Ongoing Management

  • Regular policy review scheduled
  • Employee feedback gathered
  • Usage monitored
  • Training refreshed
  • Compliance audits scheduled

Employment Rights Act 1996

  • No statutory right to TOIL
  • Discretionary - employer decides
  • Contract terms - may include TOIL
  • Company policy - provides guidance

Working Time Regulations 1998

  • Regulation 4 - maximum weekly working hours
  • Regulation 5 - rest breaks
  • Regulation 6 - rest periods
  • TOIL - may be used to comply with regulations

Compliance Checklist

  • Policy documented and communicated
  • Accrual rules defined
  • Usage rules established
  • Expiry policy set
  • Tracking system configured
  • Manager training completed
  • Employee communication done
  • Regular review scheduled
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