Time in Lieu (TOIL): Meaning & Rules
Time in lieu is paid time off that an employee takes instead of being paid for extra hours they have worked. In Australian workplaces it only applies when an award, enterprise agreement or written agreement allows it, and the hours are taken at the agreed rate, not as a free-for-all.
TOIL stands for time off in lieu, and it is a common way to deal with overtime on busy projects. This guide explains how it works, where it goes wrong and what both sides should record.
How time in lieu works
- The employer and employee agree in writing before the extra hours are worked, and the agreement says how the time off will be calculated.
- The employee works additional hours beyond their ordinary hours, which for a full-time employee means beyond 38 ordinary hours per week.
- The hours are recorded on a timesheet, signed by the supervisor, with the date, start time and finish time.
- The employer credits a TOIL balance, using the rate in the award or agreement rather than a simple one-for-one swap.
- The employee takes the time off at a time both sides agree, and the balance is reduced by the paid hours taken.
- Any balance that is unused, or owed when employment ends, is checked against the award and paid out if the award requires it.
Examples of time in lieu
- A construction labourer works a Saturday shift to meet a pour deadline, then takes the following Tuesday off paid, as the site agreement allows.
- A warehouse picker stays late to unload a delayed container, then finishes early on two later days instead of receiving overtime pay.
- A cleaner covers an extra evening shift at an office tower and takes a longer weekend after the cleaning supervisor approves the roster.
- An office administrator works through a payroll cut-off before a public holiday and arranges a half day off once the run is checked.
- A plant operator works a long day on a weather-delayed job, and the written agreement records the TOIL credit before the next roster is set.
Time in lieu rules and key numbers
The rules come from your award or agreement, not from a single national rate.
| Item | What the rule is | Where to confirm it |
|---|---|---|
| Legal source | Award, enterprise agreement or a written individual agreement, not an automatic right | Fair Work Ombudsman pay guide for the award |
| Ordinary hours | 38 ordinary hours per week for a full-time employee, plus reasonable additional hours | National Employment Standards |
| Overtime rates | Set by the award or agreement, and they decide how much time off you earn | Pay guide, overtime section |
| Casual employees | Check the award, because casuals are paid a loading of 25% in most awards and may be paid overtime instead | Pay guide, casual section |
| Records | Time and wage records kept for 7 years, with payslips within 1 working day of payday | Fair Work Ombudsman records page |
Related terms
- Overtime: work beyond ordinary hours, paid at the rate in the award or agreement.
- Penalty rates: extra pay for evenings, weekends and public holidays, set by the award.
- Ordinary hours: the hours you are normally rostered to work before overtime applies.
- Accrued leave: paid leave that builds up as you work, such as annual leave.
TOIL FAQ
What does TOIL stand for?
TOIL stands for time off in lieu. It describes paid time off taken instead of being paid for overtime. It only applies where your award, agreement or written arrangement allows it.
Can my employer make me take TOIL instead of overtime pay?
Not unless your award or agreement allows it and you have agreed. An employer cannot simply replace overtime pay with time off. Check the pay guide and your written agreement, and call the Fair Work Infoline on 13 13 94 if it is unclear.
Does time in lieu expire?
That depends on the award or agreement, which often sets a window for taking the time. Unused time should not simply disappear, so ask for a written balance and raise it in writing with your employer or the Fair Work Ombudsman.
This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation. For the pay basics, read our guide to minimum wage in Australia, or visit our recruitment page if you want to work with TQN Personnel.