What is time off in lieu?
Time off in lieu (TOIL) is paid time off taken instead of being paid for overtime, by agreement under many modern awards.
Time off in lieu, usually shortened to TOIL, is an arrangement where an employee takes paid time off work instead of receiving payment for overtime they have worked. It is allowed under many Modern Awards and enterprise agreements, and generally needs to be agreed in writing between the employee and employer.
Most awards require the time off to be taken within a set period, and if it is not taken in time the employer must pay out the overtime at the applicable rate. The amount of time off is usually equivalent to the overtime hours worked, though some awards set out how it is calculated.
Key facts
- •Lets an employee take paid time off instead of overtime pay
- •Permitted under many Modern Awards and enterprise agreements
- •Usually requires a written agreement for each period of overtime
- •If the time off is not taken within the set period, the overtime must be paid out
- •Check your award for how TOIL is calculated and when it must be taken
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Award FinderFrequently asked questions
Can my employer make me take time off in lieu instead of overtime pay?
Generally no. Under most awards, TOIL must be agreed between you and your employer, usually in writing. You can't be forced to accept time off instead of payment unless your award or agreement specifically allows it.
What happens if I don't use my time off in lieu?
Most awards require TOIL to be taken within a set period. If it isn't, your employer must pay you for the overtime at the rate that would have applied when you worked it.
General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.