What is time in lieu?

Time in lieu, also referred to as time off in lieu or TOIL, is when a person takes time off as an alternative to pay for overtime hours. It is a specific type of benefit employers can offer, creating a more flexible workforce.

Why should HR leaders care about time in lieu?

People often want time in lieu, which is why it’s worth considering as a way to attract job candidates. It’s also advantageous for the organization. 

The benefits of a time off in lieu policy include:

  • Offering people more free time, something today’s professionals often value as much or more than additional compensation
  • Serving as a motivator that encourages people to work harder toward a tight deadline because they’ll receive time off afterward
  • Giving people more time to relax and unwind, reducing burnout and improving performance
  • Decreasing the amount of overtime the organization has to pay for

What can HR leaders do to manage time in lieu?

Offering time in lieu can significantly benefit the business. To make the program a success, it’s important to consider the following:

How to calculate time off in lieu 

Calculating time off in lieu is simple. For any number of hours or days someone works overtime, they will be entitled to that amount of time off in lieu. So if they work 50 hours in a week instead of the 40 their contract stipulates, they would be granted an additional 10 hours of time off. 

Time off in lieu agreements 

If you choose to offer time off in lieu to your people, it’s important to include a policy for how it works in your employee agreement. In this policy, you may want to include guidelines for:

  • How much TOIL team members can accumulate
  • When people can take their TOIL
  • For how long TOIL days remain valid 

Managing the time off in lieu process with time and attendance tracking software

Naturally, it’s important to accurately record both overtime and time taken in lieu. This can be done through standard Excel spreadsheets, timesheets, or–more easily–with time and attendance tracking software

Attendance tracking software can automate all facets of time management, including time in lieu. Employees and managers will be able to input overtime hours, indicate that they will be compensated with time in lieu, and the hours will automatically be calculated and added to their available time off. 

<<Explore how Bob simplifies and streamlines time-off management.>>

Why should time in lieu be a part of the modern HR strategy?

In a world where work-life balance is as significant a part of the appeal of a position as a salary, a time in lieu policy is well worth considering. Offering time in lieu can help businesses attract more candidates, improve the employee experience, boost performance, and even reduce costs.