HR Duo’s New Time Off in Lieu (TOIL) Feature

At HR Duo, we’re constantly striving to improve workforce management for businesses. Our latest platform update will enhance the Time Off in Lieu (TOIL) feature, making it more transparent, efficient, and user-friendly for managers and employees alike. But what exactly is TOIL, and why should your business consider offering it? This blog will walk you through TOIL, its benefits and challenges, and how our latest feature update makes managing it a breeze.

What Is Time Off in Lieu (TOIL)?

Time Off in Lieu, commonly referred to as TOIL, is both a system and a policy that allows employees to take time off instead of receiving overtime pay when they work additional hours. For example, if an employee works 2 hours beyond their contracted hours on a busy workday, instead of receiving overtime payment, they could agree with their employer to take 2 hours off at a later date.

This arrangement can benefit both employers and employees, as it provides flexibility for staff and can help businesses manage budgets.

System: TOIL is a system that allows employees to take extra time off instead of being paid overtime. 

Policy: A TOIL policy is a set of rules and procedures that outline how TOIL is accrued, taken, and carried over. 

Is Time Off in Lieu a Legal Requirement?

In the UK & Ireland, offering TOIL is not a legal obligation for employers. Employment law does not mandate that businesses must offer TOIL as an alternative to overtime pay. However, employers are free to include TOIL as part of their employment contracts, provided that clear documentation outlines how TOIL is earned and taken.

It’s essential for businesses offering TOIL to remain compliant with Working Time Regulations. This means ensuring that an employee’s total working hours (including overtime) do not exceed the legal limits and that their TOIL leave doesn’t interfere with the statutory minimum rest periods.

The Pros and Cons of Offering Time Off in Lieu (TOIL)

Pros of Offering TOIL 👍

1. Flexibility: Employees gain more control over their work-life balance by choosing to take time off instead of being paid for overtime.
2. Cost Savings: Offering TOIL instead of paying overtime can help businesses reduce payroll costs, especially during peak periods.
3. Employee Satisfaction: Providing TOIL as an option can improve staff morale and retention, as employees feel valued and recognised for their extra efforts.
4. Reduces Burnout: TOIL is only accrued when employees are working over their normal hours, giving these hours back as leave gives employees a chance to recuperate and destress.
5. Operational Efficiency: During less busy periods, businesses can manage staffing levels better by encouraging TOIL leave.
6. Highlight Pinchpoints: Seeing large levels of TOIL regularly in certain departments/positions, can help identify productivity issues or demonstrate the need for a new hire.

Cons of Offering TOIL 👎

1. Tracking and Management: Without proper systems in place, TOIL can be difficult to manage, leading to errors and potential disputes over accrued hours.
2. Workload Imbalance: If TOIL is not effectively managed, employees may end up taking too much leave during crucial business times.
3. Cost Delays: Although TOIL may save costs upfront, accrued time off can create future labour shortages if not balanced well.

How to Manage Time Off in Lieu (TOIL) Effectively

Effectively managing TOIL requires clear policies, communication, and robust tools. Here are some tips to manage TOIL smoothly:

• Set clear guidelines and ensure employees and managers understand how TOIL is accrued and used. This should be documented in employment contracts and company policies.
• Track TOIL accurately using scheduling software like HR Duo. Tracking and managing TOIL balances will prevent errors in staff rotas, attendance management, and payroll reporting.
• Implement limits on how much TOIL can be accrued and set expiry dates to prevent TOIL from becoming a long-term liability.
• Managers should monitor and review TOIL regularly to ensure employees take their leave within reasonable time frames.

HR Duo’s Enhanced TOIL Feature

Managing TOIL can be complex, but HR Duo's latest update makes it easier than ever. Here’s how we’ve revolutionised TOIL management:

1. Employee Transparency: Employees can view their full TOIL history, including accrued, used hours, and expiry dates - empowering them to track their time off independently.
2. Real-Time Balance Insights: When applying for or approving TOIL leave, both employees and managers can see existing and projected TOIL balances, ensuring transparency.
3. Integration with Contracts: TOIL now connects fully with contract details, meaning changes to contracted hours automatically adjust TOIL accrual rates.
4. TOIL Cap and Expiry Date: Our system can automatically set caps on how much TOIL an employee can accrue, and expiry dates ensure TOIL is taken within a set period, avoiding the buildup of unused leave.
5. Quick Approval and Colour-Coding: Managers can quickly approve TOIL requests in bulk, and colour-coded timecards make it easy to see which hours have been confirmed or need adjustment.
6. TOIL Overview Report: A new report shows how much TOIL is being accrued and taken over time, allowing HR teams to monitor patterns and take action if necessary.
7. TOIL Log and Audit Trail: Every TOIL adjustment now has an audit trail, showing who approved changes and what was altered, improving accountability.

With HR Duo's enhanced TOIL management feature, businesses can now streamline how they manage overtime and time off, reduce human error, and provide greater clarity for both managers and employees. Our improvements ensure that TOIL remains a flexible yet manageable option for companies looking to maintain compliance and operational efficiency.

Discover how HR Duo’s enhanced TOIL management can benefit your business. Stay ahead of the curve with our smart, transparent, and compliant workforce management tools that will give your team the flexibility they need without adding extra burdens on management.