Time off in lieu (TOIL)

Time off in lieu (TOIL) is paid time off taken instead of being paid for overtime. Most modern awards allow it — but only by genuine agreement between employer and employee, made in writing, for each occasion of overtime worked. It can't be a blanket policy or a condition of the job.

The rules that keep TOIL fair

• Written, per occasion: each agreement records the overtime worked and the time off owed.
• The exchange rate matters: most awards work "time for time" — an hour of overtime earns an hour off — but some calculate TOIL at the overtime-equivalent rate, so check yours before assuming.
• Use it or pay it: awards typically require TOIL to be taken within a set window (commonly six months); if it isn't — or if the employee asks, or employment ends — the overtime must be paid out at overtime rates.
• No pressure: it's a contravention to force or unduly influence someone into TOIL instead of pay.
• Record it: TOIL agreements and balances are employee records, kept like any other.

Making TOIL work on a roster

TOIL suits the natural rhythm of shift businesses — a heavy week now, a quiet Friday off later — and many employees genuinely prefer time to money. It only goes wrong when balances pile up untracked. Treat TOIL hours like leave: visible, scheduled, and actually taken.

TOIL clauses of the applicable modern award under the Fair Work Act 2009 (Cth) — model terms and guidance via the Fair Work Ombudsman.

Related terms

• Overtime
• Public holidays
• Record-keeping obligations