Understanding Time Off In Lieu (TOIL)

In some Australian organizations, employees are allowed to bank their overtime hours rather than receive payment for those hours. For every hour of overtime that an employee banks, an equivalent number of leave hours is made available to the employee. This type of leave is known as TOIL. The employee can then take TOIL leave at a time that is mutually acceptable to the employer and the employee. For example, assume that an employee had used all of his annual leave time, but needed to take additional time off from work, he could work overtime to create TOIL leave.

To calculate TOIL leave, you must:

Verify that UDC 06/SV includes code T for TOIL accruals.
If you are using self-service time entry, code T is not available on this form. To enable employees to enter TOIL time using self-service, use code L.
Set up a pay type that you use to enter TOIL hours worked.
Set up a pay type for TOIL leave hours taken.
Set up a TOIL accrual that is based on the TOIL hours worked pay type.

When employees work overtime hours that they want to bank for TOIL leave, rather than entering overtime information on their timecard, they would use the TOIL pay type for hours worked, and enter the time as a negative number. For example, if an employee worked four hours of overtime during the pay period, and wanted to bank the hours for TOIL leave, he would enter –4 hours for the TOIL pay type.

The system automatically calculates the TOIL accrual based on the TOIL hours worked pay type. This accrual is set up as a negative amount, and because the pay type was also entered as a negative number, the system calculates a positive number of TOIL leave time. Finally, when the employee wants to take the leave time, you can enter a timecard using the TOIL leave hours taken pay type, which you associate with the TOIL accrual, so that the number of leave hours available is reduced by the number of hours taken.