TOIL (Time Off in Lieu)
Time off given to an employee instead of paying them overtime, in exchange for extra hours worked.
TOIL — time off in lieu — is when an employee works extra hours (beyond their normal contracted hours) and, instead of being paid overtime for that time, banks it as paid time off to take later.
There's no general statutory right to TOIL in UK law — whether it's offered, how it accrues, and any time limit for using it before it's lost, are all set by the employer's own policy or the individual's contract, not by legislation. Because of that, having a clear, consistently-applied written policy matters: without one, disputes over whether hours were authorised, how they were recorded, or whether unused TOIL should be paid out on leaving, are common.
One thing employers do have to get right regardless of policy: TOIL doesn't exempt anyone from the Working Time Regulations' rest-break and maximum-hours rules. Extra hours that generate TOIL still count towards the 48-hour average weekly limit and the daily/weekly rest requirements.
Key facts
- No general statutory right to TOIL — it exists only where an employer's policy or contract provides for it
- Employers set their own rules for accrual, expiry and whether unused TOIL is paid out on leaving
- Hours worked that generate TOIL still count towards Working Time Regulations limits (48-hour average week, daily/weekly rest)
- A written TOIL policy reduces disputes over authorisation and expiry — informal, verbally-agreed TOIL is a common source of grievances
Checked 2026-08. Rates and thresholds change — always confirm current figures on GOV.UK before relying on them.
Crewkind tracks this for you automatically
Free for a year while you're under five employees — no credit card required.