How Does Time in Lieu Work?

As an employer you’ll most commonly use time off in lieu (TOIL) when you require employees to work extra hours or days. It essentially operates as an incentive where there is the demand for extra hours, giving employees additional time off as compensation for the additional hours worked. TOIL is useful in environments that encourage flexible working as it allows employees and your business to negotiate working hours.

For more advice on the function of time in lieu in an organisation and how you can best utilise it, talk to a member of Croner's expert HR advisory team on 01455 858 132.

• What is time in lieu?
• How does time off in lieu work?
• Creating a time off in lieu policy (UK)
• Compensatory time off in lieu of overtime pay
• Answers to common TOIL questions
• Need guidance on TOIL (time off in lieu)?

What is time in lieu?

The meaning of time off in “In lieu” essentially means time off “instead”. Some of the confusion created by TOIL is that it’s a term half-written in Middle English. British law provides the following time in lieu meaning: “Time off instead of paying for overtime.

That sums TOIL up accurately but doesn’t explain the complexities of how it works through restrictions, pay, and the working time directive. TOIL may also impact National Minimum Wage regulations.

How does time off in lieu work?

Employers should include a policy of how time off in lieu works in the business, if at all. This should be included in staff handbook.

Things to include in TOIL policies include (but are not limited to):

• How employees request TOIL.
• Can the employer request TOIL?
• How employees should track their time worked. Are any systems in place that employees should use?
• How employees take the time back, do they need to provide notice, if so, how much.
• The date when the employee must use their time off in lieu.

TOIL is subject to the UK Working Time Regulations, which means no employee can work more than 48 hours (limit calculated on an average over a 17 week period.) a week unless they sign a written opt-out agreement. That total includes overtime, which limits the amount of extra work employees can do.

Creating a time off in lieu policy (UK)

Whilst the is no requirement to have a policy it aids in consistency and transparency, so it is highly recommended to have one in place.

To avoid workers taking excessive time off and accruing weeks’ worth of you should include a clause that clearly states how much time off they can accrue. This should be coupled with a deadline of when they need to take any accrued time off by.

As an employer, it is at your discretion how strict or lenient you wish to be with these parameters. Whatever you decide, remember you and the employee need to agree to the policies put in place.

Answers to common TOIL questions

TOIL is a useful option for employers but can easily become a point of tension between management and employees if handled incorrectly. Some common questions from employees and businesses, are:

What are lieu days?

• Paid days off on the condition the staff member has worked the same amount of hours above their regular contracted hours.

Can I be forced to work overtime?

• This must be explicitly stated in the employees’ contract for the employee to be forced  work overtime.

Is time in lieu legal?

• So long as you’re not forcing employees to work time in lieu against their will, it’s legal. However, employers should remember, staff are still bound by the UK Working Time Regulations and National Minimum Wage regulations.

Need guidance on TOIL (time off in lieu)?

Croner was established 80 years ago to help businesses of all sizes with their legal compliance needs. Today we serve 14,000 plus clients, protecting their businesses by keeping them compliant with the latest Employment Law and Health and Safety legislation.

Talk to a member of our expert HR advisory team today for further guidance on time in lieu. Call Croner today on 01455 858 132.