Time off in Lieu has been extended by the Fair Work commission into the Modern Awards. It is not uncommon for workers to want to enjoy the rewards of their hard work with something other than cash. For many, time off in lieu for overtime worked (TOIL) can be put towards creating a long weekend or used for family and personal activities.    This can be a greater motivator than money. For business it can be a win-win arrangement as it can save a owner money and also good workers will use this time for person reasons, rather than taking a “sickie”. 83 of the 122 modern awards already provide for (TOIL).   Of those, 60 provide the TOIL is calculated at the ordinary rate and the remaining 23 modern awards provide TOIL at the overtime rate. The Fair Work Commission has ruled that the TOIL should be inserted into the remaining awards. What steps do you need to take in implementing a TOIL arrangement?
- You may agree in writing to the employee taking time off instead of being paid for a particular amount of overtime that has been worked by the employee.
- A TOIL agreement can also be made by an exchange of email or SMS messages with you.
- The period of time off that an employee is entitled to take is the same as the number of overtime hours worked e.g. three overtime hours = 3 hours of TOIL.
- TOIL must be taken within the period of six months after the overtime is worked at times agreed by the employee and employer.
- Copies of any TOIL agreements must be kept as an employee record.
- No undue influence or undue pressure is to be exerted onto an employee to make or not make a TOIL agreement.
- An employee may request a TOIL agreement as a flexible working arrangement. You cannot refuse the agreement except on reasonable business grounds.
- A policy outlining the TOIL and how it works should be developed and all employees made aware of what the agreement will include.
- You must pay out the overtime if:
- TOIL is not taken within six months;
- The employee requests it to be paid out; or
- The employee’s employment ends
You must not knowingly or recklessly make a false or misleading representation about an employee’s entitlements under a TOIL agreement. You should know what the modern award that applies to your business has in terms of a TOIL arrangement. Help is available End2end can help a business get ahead of their competitors with tailored staff management strategies, call us on 02 8977 4002 to see how we can help you.