TOIL or overtime pay: a practical UK employer guide
Understand time off in lieu and overtime pay, agree the relevant terms and keep clear records of extra hours, approvals and time taken. UK guidance.
By The TeamZap Team · · Updated · 3 min read
In this guide
Time off in lieu, usually called TOIL, is agreed time off instead of payment for overtime. Overtime pay compensates extra hours through pay under the applicable arrangements. Decide which treatment applies before the work where possible, and keep the hours and agreement clear.
This guide covers practical record keeping for UK employers. It does not determine an individual employee's contractual entitlement.
Start with the agreed terms
GOV.UK explains that TOIL arrangements, including when the time can be taken, are agreed with the employer. Check the applicable terms instead of inventing a rule after the extra hours have been worked. See GOV.UK on time off in lieu.
The contract will usually describe overtime pay. There is no general requirement for an overtime premium, but average pay for total hours must meet the relevant minimum wage requirements. Check GOV.UK overtime guidance and the actual employment arrangement.
Keep the two records distinct
| Record | Information to keep |
|---|---|
| Extra work | Date, hours, reason and approval or review |
| Pay treatment | Applicable rate and payroll period where relevant |
| TOIL agreement | Agreed credit, conditions and how time is requested |
| Time taken | Date, amount and remaining agreed balance |
| Unresolved query | Owner and next review date |
Do not treat an attendance total as proof of the agreed pay or TOIL treatment. It supplies part of the information needed for the decision.
A fictional TOIL example
An employee works two additional hours under an agreed arrangement that credits one hour of TOIL for each extra hour. The reviewed record therefore adds two hours to the TOIL balance.
If the employee later takes one agreed hour, one hour remains. The arithmetic is simple; the important parts are the underlying agreement, accurate working time and a record of the time taken.
This example does not establish the rate, expiry or leaving treatment for another business.
Avoid unclear defaults
Explain who can authorise extra hours, how unexpected overruns are reviewed and how staff raise a disagreement. State how requests to take accrued time are considered.
Do not describe TOIL as automatically cost free. The business still needs to plan cover when the time is taken, and pay obligations depend on the applicable arrangements.
If a balance cannot realistically be used, resolve the position through the agreed process rather than silently removing it.
Working time still needs review
Recording extra hours as TOIL does not make those hours disappear from working time. Consider the applicable rest and hours rules alongside the pay arrangement. The UK rota guide links to current primary guidance.
Use a separate review for an individual contractual or pay dispute. A general template cannot establish the correct outcome for every case.
Connect attendance with the next decision
TeamZap's attendance and payroll preparation help organise reviewed working time. This article does not currently provide the automatic accrual and redemption workflow described in this general TOIL guide.
Before payroll or a leave decision, reconcile the relevant records and resolve queries. Use the timesheet checklist to keep the period, reviewer and approved version clear.
Frequently asked questions
What does TOIL mean?
Time off in lieu means agreed time off instead of payment for overtime. The terms, including when it can be taken, need to be agreed with the employer.
Is there a universal TOIL expiry period?
No universal period is established by this guide. Check the applicable contract and agreed arrangements, and get appropriate advice if the position is unclear.
