Use this template to create a clear TOIL policy managing banked hours fairly.

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Time Off In Lieu (TOIL) Policy

[Company Name]

Policy Owner: [HR Director / Operations Manager] Effective Date: [Date] Last Reviewed: [Date] Next Review: [Date]

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1. Purpose and Scope

1.1 Purpose

This policy establishes the framework for Time Off In Lieu (TOIL) at [Company Name]. TOIL allows employees to take paid time off to compensate for additional hours worked beyond their contracted hours, as an alternative to overtime pay.

1.2 Scope

This policy applies to:

• [All employees / Specified grades or roles only]
• [Full-time and part-time employees]
• [Excludes: Senior management / Directors / Employees on annualized hours contracts]

This policy does not apply to:

• [List any exclusions - e.g., zero-hours staff, contractors, senior management]

1.3 What is TOIL?

TOIL (Time Off In Lieu) is paid time off granted to compensate for additional hours worked. It is calculated on a like-for-like basis - one extra hour worked equals one hour of TOIL accrued.

TOIL is not:

• The same as annual leave
• A legal entitlement (it's a company benefit)
• Guaranteed - it's subject to this policy and business needs

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2. Eligibility and Entitlement

2.1 Eligible Employees

TOIL is available to employees who:

• [Have completed probation / Are employed for 3+ months]
• [Are in roles specified in this policy]
• Work additional hours beyond contracted hours with prior approval

2.2 When TOIL Can Be Earned

TOIL may be accrued for:

Approved:

• Additional hours worked beyond contracted weekly hours
• Weekend working (if not contractual)
• Bank holiday working (if not contractual)
• Emergency call-outs outside normal hours
• Attending training/events outside contracted hours
• Project work requiring extended hours (pre-approved)

Not eligible for TOIL:

• Hours already paid as overtime
• Contractual hours (including regular shift patterns)
• Attendance at social events (unless specifically approved)
• Working through lunch breaks by choice
• Catching up on work due to poor time management
• Unauthorized additional hours
• Time spent traveling within normal commute distance

2.3 Approval Required

All TOIL must be pre-approved by your line manager.

Working extra hours without approval does not create automatic entitlement to TOIL. Approval must be obtained before working additional hours, except in genuine emergencies.

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3. Accrual of TOIL

3.1 Calculation Method

TOIL is accrued on a straightforward hour-for-hour basis:

• 1 additional hour worked = 1 hour of TOIL accrued
• [Alternative if enhanced rates apply:] Weekend hours accrue at [1.5x]
• [Alternative if enhanced rates apply:] Bank holiday hours accrue at [2x]

3.2 Minimum Accrual

The minimum period for which TOIL can be accrued is [30 minutes / 1 hour].

Increments shorter than this will not be recorded.

3.3 Maximum Accrual

Employees can accrue a maximum of [10 / 15 / 20] hours of TOIL at any time.

Once this limit is reached, employees must take TOIL before accruing more. This prevents excessive build-up of banked hours.

3.4 Recording TOIL

Responsibility for recording:

• Employees must record additional hours worked using [system/spreadsheet/timesheet]
• Managers must approve and authorize TOIL accrual within [2 working days / 1 week]
• HR will maintain central records

What to record:

• Date additional hours worked
• Start and finish times
• Total additional hours
• Reason for additional hours
• Manager approval

Failure to record TOIL promptly may result in loss of entitlement.

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4. Taking TOIL

4.1 Requesting TOIL

TOIL is taken in the same way as annual leave:

1. Request TOIL through [HR system / email to manager / booking system]
2. Give at least [5 / 10] working days' notice
3. Await manager approval before assuming request is granted
4. Manager will respond within [2 / 3] working days

4.2 Manager Approval

Managers will consider:

• Business needs and workload
• Adequate cover in department
• Fairness to other team members
• Whether employee has accrued TOIL available

Managers may refuse TOIL requests if:

• Insufficient notice given
• Business-critical period (e.g., month-end, busy season)
• Insufficient cover available
• Multiple team members already on leave

Managers should work with employees to find alternative dates where possible.

4.3 Minimum and Maximum Blocks

TOIL can be taken in minimum blocks of [half day / full day / 1 hour].

Maximum consecutive TOIL that can be taken: [5 days / 10 days / no limit].

4.4 Priority of Use

TOIL should generally be taken before annual leave to prevent excessive accrual. However, the timing is subject to business needs and manager approval.

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5. Expiry and Carry-Forward

5.1 Expiry Period

TOIL must be used within [3 months / 6 months / 12 months] of being accrued.

TOIL accrued on [date] must be taken by [date + expiry period] or it will be forfeited.

Example: TOIL accrued in January must be taken by 31 March (if 3-month expiry).

5.2 Reminders

Managers will:

• Monitor TOIL balances monthly
• Remind employees when TOIL is approaching expiry
• Encourage employees to plan TOIL in advance

5.3 Forfeiture

TOIL not taken within the expiry period will be lost. The Company will not make payment in lieu of expired TOIL.

Exception: If the Company has prevented an employee from taking TOIL (e.g., operational reasons, sickness), the expiry may be extended at manager's discretion.

5.4 Annual Carry-Forward

TOIL [does / does not] carry forward across calendar years.

[If no carry-forward:] All TOIL must be taken by 31 December. Any balance at year-end is forfeited.

[If limited carry-forward:] Maximum [X] hours can be carried forward into the new year.

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6. TOIL and Employment Changes

6.1 Long-Term Absence

Sickness absence:

• TOIL continues to expire during sickness absence
• Consider taking TOIL before extended sick leave starts
• Managers may extend expiry in exceptional circumstances

Maternity/Paternity Leave:

• Take TOIL before leave starts
• TOIL accrued continues to expire during leave
• Cannot be added to maternity/paternity leave

6.2 Leaving Employment

Notice Period:

• Employees should take accrued TOIL during notice period where possible
• Manager may require TOIL to be taken during notice

Payment on Termination:

[Option A - No payment:] TOIL will not be paid out on termination of employment. Employees should ensure TOIL is taken before their leaving date.

[Option B - Payment if prevented:] TOIL will only be paid out if the Company prevented the employee from taking it (e.g., rejected requests, insufficient notice period).

[Option C - Always paid:] Outstanding TOIL will be paid at the employee's basic hourly rate on termination of employment.

6.3 Transfer or Promotion

TOIL balances [transfer with the employee / are reset to zero] on internal transfer or promotion.

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7. Working Time Regulations Compliance

7.1 Maximum Hours

Even with TOIL arrangements, the Company must comply with Working Time Regulations 1998.

Limits:

• Maximum 48 hours per week (averaged over 17 weeks) unless you've opted out
• Minimum 11 hours rest between shifts
• Minimum 24 hours rest per week (or 48 hours per fortnight)

Employees must not regularly work excessive hours, even if accruing TOIL.

7.2 Monitoring

Managers will monitor hours worked to ensure compliance. If an employee is regularly working excessive hours:

• Discuss workload and priorities
• Consider redistribution of work
• Address time management if appropriate
• Restrict TOIL accrual if necessary

7.3 Rest Breaks

TOIL does not compensate for missed rest breaks. Employees must take required breaks:

• 20-minute break if working 6+ hours
• Daily and weekly rest periods as required

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8. TOIL vs Overtime Pay

8.1 Default Position

At [Company Name], additional hours are compensated by TOIL, not overtime pay, unless:

• Your contract specifies overtime pay
• Your role is excluded from TOIL (senior management, etc.)
• Specific agreements are in place for certain roles/projects

8.2 Employee Choice

[Option A:] Employees [do not have a choice] - TOIL is the default compensation method.

[Option B:] Employees may choose between TOIL or overtime pay (at [1x / 1.5x] rate) when working pre-approved additional hours, subject to manager approval.

8.3 Casual Overtime Workers

Employees who regularly work paid overtime should continue to receive overtime pay. TOIL is intended for occasional additional hours in roles where overtime is not the norm.

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9. Public Holidays

9.1 Bank Holiday Working

If you work on a bank holiday (and it's not part of your normal shift pattern):

[Option A - Enhanced TOIL:] Accrue TOIL at [1.5x / 2x] rate, plus receive your normal day's pay.

Example: Work 8 hours on bank holiday = Accrue 16 hours TOIL

[Option B - Day in lieu:] Take another day off in lieu (in addition to normal pay), to be taken within [X] weeks.

[Option C - Standard TOIL:] Accrue standard hour-for-hour TOIL.

9.2 Requesting Bank Holiday Work

Bank holiday working must be approved in advance. It should only occur when business-critical.

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10. Responsibilities

10.1 Employee Responsibilities

Employees must:

• Seek prior approval before working additional hours
• Accurately record all TOIL accrued
• Request TOIL in line with this policy
• Monitor their own TOIL balance
• Use TOIL within expiry period
• Not regularly work excessive hours

10.2 Manager Responsibilities

Managers must:

• Only approve additional hours when business need exists
• Authorize TOIL accrual promptly
• Monitor team TOIL balances
• Approve/refuse TOIL requests fairly and promptly
• Ensure employees take TOIL before expiry
• Ensure compliance with Working Time Regulations
• Prevent abuse or excessive accrual

10.3 HR Responsibilities

HR will:

• Maintain central TOIL records
• Monitor policy compliance
• Advise managers on policy interpretation
• Review policy effectiveness annually

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11. Abuse and Misuse

11.1 Unauthorized Hours

Working additional hours without approval does not create TOIL entitlement.

Repeatedly working unauthorized hours may result in:

• Refusal to grant TOIL
• Performance management discussion (time management)
• Disciplinary action if after warnings

11.2 Falsifying Records

Falsifying TOIL records (claiming for hours not worked) is gross misconduct and may result in dismissal.

11.3 Managers Pressuring Staff

Managers must not:

• Pressure staff to work unpaid additional hours
• Refuse reasonable TOIL requests without good reason
• Fail to approve legitimately accrued TOIL

Such conduct may be subject to disciplinary action.

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12. Monitoring and Review

12.1 Policy Review

This policy will be reviewed annually to ensure it remains fair, compliant, and effective.

12.2 Data Monitoring

HR will monitor:

• TOIL accrual levels by department
• Expiry and forfeiture rates
• Working Time Regulations compliance
• Policy effectiveness

12.3 Feedback

Employees and managers are encouraged to provide feedback on this policy to [HR].

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13. Related Policies

• Annual Leave Policy
• Working Time Regulations Opt-Out Policy
• Overtime Policy (if applicable)
• Flexible Working Policy
• Time and Attendance Policy

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14. Queries and Interpretation

Questions about this policy should be directed to:

[HR Manager Name] Email: [email] Phone: [phone]

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Appendix A: TOIL Request Form

TOIL Request Form

Detail	Information
Employee Name
Department
Manager
Date of Request

TOIL Details:

TOIL Date Requested	Hours/Days Requested	Current TOIL Balance	Reason

I confirm I have [X] hours of TOIL accrued and request the above time off.

Employee signature: _________________ Date: _________

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Manager Approval:

• Approved - TOIL authorized as requested
• Refused - Reason: _________________
• Alternative dates proposed: _________________

Manager signature: _________________ Date: _________

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Appendix B: TOIL Accrual Form

TOIL Accrual Record

Detail	Information
Employee Name
Week Ending

Additional Hours Worked:

Date	Day	Start Time	Finish Time	Break	Total Additional Hours	Reason	Manager Approval

Total TOIL accrued this week: [X] hours

Employee signature: _________________ Date: _________

Manager authorization: _________________ Date: _________

TOIL added to employee record by HR: [Date]

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Key Points Summary

For Employees:

• Get approval BEFORE working extra hours
• Record TOIL promptly and accurately
• Take TOIL within [X] months or lose it
• Give adequate notice when requesting TOIL
• Don't let TOIL build up excessively

For Managers:

• Only approve genuinely needed additional hours
• Authorize TOIL claims promptly
• Monitor team TOIL balances monthly
• Approve TOIL requests fairly
• Ensure staff take TOIL before expiry
• Watch for Working Time Regulations breaches

Common Mistakes:

• Working extra hours without approval
• Letting TOIL expire (poor planning)
• Recording inaccurate hours
• Treating TOIL as annual leave
• Assuming TOIL is an entitlement (it's discretionary)
• Not understanding the expiry period