Time Off in Lieu (TOIL)
/toɪl/ rhymes with 'boil'
Definition of Time Off in Lieu (TOIL)
Time off in lieu (TOIL) is paid time off you take instead of being paid overtime.
What it means in practice
Time off in lieu (TOIL) gives you the option to take paid time off instead of receiving overtime pay under an award or agreement.
If your award, enterprise agreement or other workplace agreement allows TOIL, you and your employer must agree to it before the overtime is worked or as required by the relevant agreement. The agreement must be in writing.
However, your employer cannot require you to take TOIL if it is not allowed under your workplace agreement or if you have not agreed to it.
How Time Off in Lieu (TOIL) accrues
Under most modern awards, TOIL is accrued on an hour for hour basis, with one hour of overtime worked providing one hour of paid time off. It is generally not accrued based on overtime penalty rates under most modern awards although some modern awards do provide for this more beneficial entitlement, so it is important to check your award or agreement.
Common TOIL traps to watch for
- No written TOIL agreement between you and your employer.
- You are not allowed to take your accrued TOIL within the required time.
- Unused TOIL is paid at your ordinary hourly rate instead of the overtime rate.
Time Off in Lieu (TOIL) versus Rostered Day Off (RDO) and banked hours
Time off in lieu is different from a rostered day off (RDO). An RDO is usually earned by working additional hours under your workplace agreement, while TOIL is earned instead of receiving overtime pay.
TOIL is also different from informally ‘banking’ extra hours. TOIL must be allowed under your workplace agreement and agreed to in writing.
- Read more about Rostered Day Off (RDO)
Example Case: Jane’s TOIL not being honoured
Jane works in a retail shop. During a busy sales period, she works several hours of overtime. Her manager asks if she would like to take time off in lieu (TOIL) instead of overtime pay, and they agree to this in writing.
Over the next few months, Jane asks to take her TOIL. Each time, her manager says the shop is too busy and tells her to wait. Six months pass, but Jane still has not been able to take her TOIL.
If Jane’s award or agreement requires unused TOIL to be paid out after six months, her employer cannot simply leave the hours sitting in her balance. They need to pay her the overtime she earned at the correct overtime rate.
If you are in a similar situation, keep copies of your TOIL agreement and records of the overtime you worked. If your employer does not follow the rules, your union can help you understand your rights and take the next steps.
Go deeper
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