What is time off in lieu (TOIL)?

Time off in lieu (TOIL) means taking paid time off instead of being paid for overtime you have worked. In the Australian Fair Work system, TOIL is only available where your modern award, enterprise agreement or contract allows it, and it must be agreed in writing between you and your employer for each period of overtime.

How is time in lieu calculated?

There are two common methods. Hour-for-hour banks one hour off for each overtime hour worked, regardless of the overtime penalty — so 5 hours of overtime banks 5 hours of TOIL. The penalty-equivalent method banks time at the overtime rate, so 2 hours worked at time-and-a-half (1.5x) banks 3 hours of TOIL, and 2 hours at double time (2.0x) banks 4 hours. Most modern award TOIL clauses use the hour-for-hour method.

Does my employer have to pay out unused time in lieu?

Most modern award TOIL clauses require the time off to be taken within a set period after the overtime is worked. If it is not taken by that deadline, the employer generally must pay out the banked overtime at the overtime rate that applied when it was worked. On termination, any untaken TOIL is usually paid out at the applicable overtime rate. Check the TOIL clause in your award or agreement for the exact deadline.

Can my employer force me to take time off in lieu instead of overtime pay?

No. Under the Fair Work system, TOIL must be agreed between you and your employer — an employer cannot require you to take time off instead of being paid overtime. Most award TOIL clauses require a written agreement for each occasion of overtime, and you retain the right to be paid overtime if no agreement is reached.

Time in Lieu (TOIL) Calculator

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Last verified: 2 August 2026

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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.

Time in Lieu (TOIL) Calculator

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