How does time off in lieu work?

This article covers time off in lieu arrangements for employees covered by the Health Professionals and Support Services Award.

What is time off in lieu?

​Time off in lieu, commonly known as TOIL, is when an employee takes paid time off instead of being paid for working overtime.

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What are the rules for taking time off in lieu?

For employees covered by the Health Professionals and Support Services Award, there are a number of rules that apply.

Written agreement

An employee and employer may agree in writing to the employee taking time off instead of being paid for the overtime that has been worked by the employee.

​There must be a separate agreement for each time overtime is worked in a pay period.

What info must be in the agreement?

The written agreement must contain the following information:

• The number of overtime hours and when they were worked.
• The employee and employer agree that the employee can take time off instead of payment for working overtime.
• If the employee requests, at any time, to be paid for any unused TOIL, the employee must pay the employee the overtime in the next pay period at the applicable overtime rate.
  
  

The employer must keep a copy of the agreements as an employee record.

Note: ​The agreement can also be made by an exchange of emails between the employer and employee or by any other electronic means. This electronic exchange must still include the required information as detailed above.

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How much time off is an employee entitled to?

An employee, who is covered by the Health Professionals and Support Services Award, is entitled to take the same time off as the number of overtime hours worked.

For example, an employee who works 2 hours overtime can take 2 hours time off.

When must the time off be taken?

The time off must be taken within 6 months after the overtime has been worked.

​The time off can be taken at a time or times agreed by the employer and employee within the 6-month period.

Under what circumstances would the overtime be paid?

In certain circumstances you may need to pay the overtime worked at the relevant overtime rates even though a TOIL agreement has been signed:

• If the employee requests, at any time, to be paid for any unused TOIL. This must be paid at the applicable overtime rate in the pay period following the request.
• If the TOIL is not taken within the 6-month period. This must be paid at the applicable overtime rate in the pay period following those 6 months.
• If, on the termination of the employee, the employee has unused TOIL. This must be paid at the applicable overtime rate with their termination pay.

Can I force an employee to take time off in lieu?

​No.
An employer must not exert any undue influence or undue pressure on an employee in relation to a decision by the employee to make, or not make, an agreement to take time off instead of payment for overtime.

Need help?

If you need help with employee entitlements, scheduling staff to minimise overtime or general HR support please contact us. We offer a no-obligation consultation to chat about your needs and see how we can help you.