How should TOIL hours be accrued, recorded and taken?

• When offering time-off-in-lieu (TOIL) to employees, it is essential to have a uniform approach to how extra hours worked are accrued, recorded and reclaimed as leave.
• The Working Time Regulations 1998 outline the records that must be kept in accordance with the law.
• Using TOIL tracking software, such as Leave Dates, can help busy managers monitor TOIL balances and ensure records are maintained.

When an employee has worked over their weekly contracted hours, employers must compensate them with overtime pay or TOIL.

The UK has no broad statute regarding TOIL, but overtime hours fall within the Working Time Regulations 1998. The hours earned and taken are primarily determined by the employment contract.

Working hours for any employee must not exceed an average of 48 hours per week, including overtime, unless a written opt-out has been formally agreed upon. There are also limited exceptions for specific industries and types of work.

Whether an employee working extra hours takes overtime pay or is entitled to TOIL as compensation must be agreed upon in their contract and applied consistently. If the employee is entitled to TOIL, the hours worked must be accurately recorded and accessible.

Tip: Remember to include written leave policies in your staff handbook for managing overtime hours. This shows staff that the system is fair and transparent, particularly in the case of a dispute.
 

When an employee works above their contracted hours, these additional hours are accrued as TOIL with manager approval.

Businesses often compensate employees on a like-for-like basis (e.g., the employee earns one TOIL hour for each hour of overtime worked). In some cases, enhanced rates may apply on weekends or bank holidays.

Both parties should define and agree to overtime terms in advance of shifts where it may be required. Defining the circumstances or roles that qualify for TOIL and setting the timeframe for using the accrued hours are crucial. You may allow your team member to bank their holidays in the long term. Still, in most cases, employees are expected to reclaim their TOIL within 3-6 months.

When using a staff holiday planner, such as Leave Dates, employees can submit their overtime hours as they accrue. This means that managers can approve them on the spot, and everything is documented and visible to all.

Keeping accurate records of staff leave is not only about fairness and transparency, it’s about legal compliance.

Employers should be sure to record:

• Dates, times and reasons overtime was worked.
• The number of hours earned.
• When and how TOIL is to be taken.

It’s best not to rely on manual spreadsheets for tracking overtime and TOIL, especially as your team grows. A TOIL tracking system like Leave Dates offers automation, transparency, and instant visibility for both managers and employees.

Businesses often report needing an intuitive holiday planner by the time they have their second or third hire, to keep their admin sustainable. Leave Dates is a great option that is easy to use, affordable, and automatically updates TOIL balances the moment overtime is approved. It is also easy to store communication, generate reports, and allow managers and team members to view their leave balances from desktop or mobile devices.
 

Reclaiming extra hours worked

Managers should encourage employees to take their TOIL hours as soon after accrual as possible to help restore their work-life balance. Ideally, it is not seen as an extension of annual leave, although it may be taken consecutively, but it is a chance to maintain wellbeing.

This isn’t a hard-and-fast rule; depending on circumstances, it might be appropriate to extend the outline’s expiry if it suits all parties.

Set clear rules and communicate them.

Your overtime and TOIL processes should be available for your team in your employee guidelines or handbook. Your staff must be informed of how their hours are earned, recorded, taken and who they can speak to if they have any questions or issues.

Encourage timely use

TOIL should be used to restore balance. Using reporting tools in your staff holiday planner can help you spot employees who have not taken back their overtime and encourage them to do so.

Use a staff holiday planner.

Effective time-off-in-lieu management starts with keeping everything in a single, central, accessible system. A cloud-based tool like Leave Dates simplifies approvals, visibility, and reporting for everyone.

Using Leave Dates, managers can oversee and approve overtime as it accrues, and employees can check their balances 24/7.

Final thought

Healthy, happy workplaces are built on fair and transparent systems, and offering TOIL supports this mission. By defining clear TOIL policies and using a reliable TOIL leave tracker, every extra hour worked can be recognised, recorded, and compensated fairly, creating a culture of balance and trust.

The information in this article is general and may not apply to specific circumstances. It should not be considered legal advice. We strive to provide accurate information, but cannot guarantee its accuracy. We are not responsible for any losses resulting from reliance on the information on this site.