How Does Time Off in Lieu Work?

Croner
May 21
3 min read

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.

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.