What TOIL means
TOIL stands for time off in lieu (“in lieu” simply means “instead of”). When an employee works extra hours beyond their contract, TOIL lets them take that time back as paid leave later, rather than receiving overtime pay for it. It is a common, flexible way to recognise extra effort without adding to the wage bill.
Common accrual rates
The rate is whatever you agree and put in writing. The usual options are:
- 1:1 — one hour worked earns one hour off. The most common arrangement.
- 1.5:1 — one hour worked earns 90 minutes off, often used for evening or weekend work.
- 2:1 — one hour worked earns two hours off, sometimes used for unsocial hours such as bank holidays or nights.
Whichever you choose, apply it consistently. Our TOIL calculator works out how much time off a given rate earns so you are not doing it on the back of an envelope.
Is TOIL legal — and is it required?
TOIL is perfectly legal, but it is not legally required. There is no statutory right to time off in lieu; it is a contractual matter between employer and worker. Two things still apply, though:
- The Working Time Regulations 1998 rest breaks and the 48-hour average working week still apply — TOIL does not let you work people beyond those limits.
- TOIL is separate from statutory holiday. It sits on top of the 5.6 weeks of annual leave and cannot be used to reduce it.
TOIL vs overtime vs annual leave
| How it is earned | How it is repaid | |
|---|---|---|
| TOIL | Working extra hours | Paid time off, at an agreed rate |
| Overtime | Working extra hours | Extra pay in money |
| Annual leave | Statutory entitlement (5.6 weeks) | Paid time off |
Tracking TOIL properly
The biggest risk with TOIL is losing track of it — balances that drift, hours that never get taken, and disputes about what was owed. Keep a clear running record for each person. Our free TOIL tracker (Excel) gives you a ready-made ledger, or Rotaleave’s balance reports keep TOIL alongside holiday so nothing slips through the cracks.
A simple TOIL policy outline
A workable policy does not need to be long. Cover these points in writing:
- Who can earn TOIL and for what kind of extra hours.
- The accrual rate (for example 1:1, or 1.5:1 for weekend work).
- Approval — extra hours must be agreed in advance by a manager.
- Expiry — the window to take TOIL, for example within the same quarter.
- What happens on leaving — whether unused TOIL is paid out or lost.
For carrying leave between years, see our guide on carrying over annual leave. As always, this is general guidance, not legal advice — check gov.uk and Acas for your circumstances.