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Peninsula Team, Peninsula Team
(Last updated )
Peninsula Team, Peninsula Team
(Last updated )
In this guide, we'll discuss what TOIL is, how it works, and the benefits it can bring to your business.
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As an employer, your business might go through busy periods where you require staff to work overtime. It can sometimes be difficult to persuade them to work extra hours, but you could get around this by offering them time off in lieu (TOIL).
It’s vitally important you understand how TOIL works, and how to manage it successfully in your company. Otherwise, you may end up relying on TOIL too much, which could cause staffing issues down the line.
In this guide, we'll discuss what TOIL is, how it works, and the benefits it can bring to your business.
Find the safest and easiest way to resolve your workplace issue
Time off in lieu, or TOIL - is when an employee works extra hours, but instead of being paid overtime; they receive extra time off - whether this is hours or a whole day. Staff may wish to take this leave at a later date when they need time off, for example to attend medical appointments with family members.
You might agree in your employment contracts that staff will work a certain number of bank holidays in the year. Having worked these holidays, they can then take time off in lieu at another point in the year - or within a certain period.
Under UK employment law, there's no legal requirement for you to offer time off in lieu. So as an employer, it's up to you to decide whether it’s an appropriate option in your company moving forward.
You can't force an employee to work overtime in exchange for TOIL, or assume they'll take it without a prior agreement. Under the Working Time Regulations 1998, employees cannot work more than 48 hours a week without written agreement, including any overtime.
No, employees aren't paid for TOIL. Instead of receiving money, the employee would work in excess of their contractual hours, and then receive paid leave.
However, you must ensure your National Minimum Wage requirements when working out the average number of hours worked per employee. Not doing so can lead to claims being raised against you, with potentially heavy fines to pay.
Not all companies offer TOIL, but those that do will likely operate in a similar way.
Typically, any employees who work overtime are eligible for TOIL, including full-time, part-time or, temporary workers. Under TOIL, if an employee works an extra two hours with their manager's sign off - the two hours can be "banked" to take off at a later agreed date.
These days can be used for whatever the employee wants to do with their time off. Typically, these details are agreed upon by both parties and included in the employee handbook.
Employers can experience many benefits when offering staff TOIL. For example, employees might enjoy the agreement so much it encourages them to stay with your company.
Let’s discuss them all in more detail:
Taking time away from work can help increase your employees' productivity when they return. This is because they can spend a day or two to rest, spend time with loved ones, and come back feeling refreshed.
Not allowing your staff time away from the business could increase the chances of them becoming stressed, burnt out, and unmotivated.
TOIL can provide your employees with flexibility and is seen as a reward after they work extra hours.
Offering flexibility to your employees' working lives can allow them to spend more time with their families, which in turn will lead to them feeling more satisfied both inside and outside of work.
Offering TOIL to your employees can help to build a stronger workplace culture in your business. If your employees know their hard work is rewarded with extra time away from the company, they're more likely to feel valued and happier - leading to a positive culture being created.
On the flip side, overworking your staff could result in your employees becoming stressed at work. Which will make it more difficult to build a positive place to work. It also helps to increase work life balance as employees can manage time easier, as well as improving the relationship between employer and employee.
As well as the above positives that come from offering TOIL, there are also negatives that you need to be aware of.
The use of toil can highlight staff issues if used too often, which may make your employees stressed or anxious about coming to work. You shouldn't take this option to cover shortfalls with your staffing, a better solution would be to hire more employees.
If you don't manage TOIL effectively in your business, it could cause chaos at the end of the year. For example, too many employees might want to take their TOIL around the same time, such as in the festive period.
To ensure you manage TOIL properly in your business, you should ensure you’re keeping track of what TOIL is owed, and when employees are using their time off. This helps with managing staff and rotas, especially during busy periods.
Using HR software ensures you're tracking TOIL correctly. Software can help you to keep accurate records of which employees have worked overtime, ensuring they're compensated correctly. Not doing so could lead to claims being raised against you in the future.
Having a time off in lieu policy is a great way of managing TOIL in your business correctly. So it's important you know what elements you should have in yours.
TOIL policies should include the following:
Once you have a TOIL policy, make sure all your employees read and sign it. This includes any new starters and existing staff.
There may be a time when an employee hands their notice in to start new employment elsewhere, but has remaining TOIL to take. If this is the case, it's important you know how to handle the situation correctly.
You have a legal obligation to pay them the equivalent in overtime pay, at their standard rate of pay. Failure to do so can lead to them raising a claim against you to an employment tribunal. Which can result in both reputational and financial damages.
When running a business, there will be times when you're extremely busy – such as during the festive period. When this occurs, you may ask your employees to work overtime.
This might not be ideal for them, but one way they might agree to work longer is by offering them time off in lieu. But, you must ensure you understand how to offer TOIL, as it can cause staffing issues within your company.
Peninsula offers you expert 24/7 HR advice and support, to help you manage TOIL in your company. Contact us today on 0800 0282 420.
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