Time Off in Lieu (TOIL): What It Means and How to Track It
Updated May 31, 2026
Time off in lieu (TOIL) — also called time in lieu or comp time — is paid time off given instead of overtime pay for extra hours worked. "In lieu" is French for "instead of." Here's how it works and how to track it without a side spreadsheet.
What TOIL means
When an employee works beyond their contracted hours, you can compensate them two ways: pay overtime, or give equivalent paid time off later. The second option is TOIL — they bank the extra time and take it as leave instead of cash.
Because the time off replaces pay for hours already worked, TOIL is always paid leave, not unpaid.
Accrual rates: 1:1, 1.5×, and double time
The simplest rate is 1:1 — one extra hour worked earns one hour off. Many employers offer a premium for unsocial hours, mirroring overtime multipliers.
TOIL vs. paid overtime
TOIL helps with cash flow and gives employees flexibility, but it needs clear rules: how it's approved, the rate, and an expiry so balances don't pile up indefinitely. Without tracking, banked hours get forgotten or disputed.
Keep TOIL on the same system as the rest of your leave so a manager can see banked time next to PTO and approve usage in one place.
Orvella's banked-time feature logs overtime and travel with a multiplier, routes it for approval, and converts it into a leave balance employees can book — no separate TOIL spreadsheet.
Frequently asked questions
What does time off in lieu (TOIL) mean?
TOIL is paid time off given instead of overtime pay for extra hours an employee has already worked. "In lieu" means "instead of."
How is TOIL calculated?
Usually 1:1 — one hour of overtime earns one hour off — but employers often apply a premium such as 1.5× for evenings or 2× for weekends and public holidays.
Is time off in lieu paid?
Yes. TOIL is paid leave, because it replaces pay for hours the employee has already worked.