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Compensatory time-off plan (also, “time off in lieu”)

HR Glossary

Compensatory time-off plan (also, “time off in lieu”)

The concept of time off in lieu (TOIL) is an alternative to paying overtime for work done in addition to regular hours. For example, a worker contracted to do 8 hours in a day may be required to work an extra 3 hours. Rather than paying overtime rates, the business may offer the employee to have 3 hours off on another day while still getting paid for the full day. The Australian award does not prescribe rules for TOIL, however many enterprise agreements or employment contracts may provide a guidance clause.

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