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The Global Insight

What lieu days means?

Author

James Williams

Updated on March 25, 2026

Answers to common TOIL questions “What are lieu days?”: Paid days off on the condition the staff member has worked the same amount of hours above their regular contracted hours. “Can I be forced to work overtime?”: The employee and employer must have a written agreement for the employee to work overtime.

How does a lieu day work?

Time in lieu is time off from work which an employee is granted for having worked outside of normal working hours. Lieu means “instead”. So when an employee is taking time in lieu, they are taking extra time off work instead of being paid for working overtime.

What does work in lieu mean?

Time off in lieu (TOIL) Some employers give you time off instead of paying for overtime. This is known as ‘time off in lieu’. You agree the terms (for example, when it can be taken) with your employer. Previous Part-time workers.

Can I get a day in lieu?

An alternative holiday is a day an employee is entitled to take off as paid leave in return for having worked on a public holiday. If your employee works a public holiday and it’s a day they would not otherwise work, then they are not entitled to an alternative holiday. …

Can lieu days be denied?

This is what is referred to as “lieu days.” In neither situation is there any cost to the employer. However, under the terms of the collective agreement the employer must not unreasonably deny a leave.

Is time off in lieu legal?

Under the new provisions passed by the Fair Work Commission, employers and employees can agree to take time off in lieu (TOIL) for overtime. This means that where an employee works overtime, they can request to have their overtime hours given to them as time off, rather than having it paid as overtime.

How is pay in lieu of notice calculated?

Otherwise, PILON is calculated by working out what the employee would have earned during their notice period. This means that you’ll have to deduct the usual Income Tax and National Insurance contributions from the payments in the same way you would’ve done if the employee had continued to work.

Is time in lieu paid out on termination?

When an employee is terminated (either at the direction of the employee or employer), they are to be paid out any time in lieu which has not been taken. For example, if you had an employee who had worked 8 hours of overtime and then resigned, you need to compensate your employee for those 8 hours of overtime worked.

Is off in lieu mandatory?

Currently when a public holiday falls on a Sunday, the following Monday will be, by law, a holiday. But if the public holiday falls on a Saturday, which is the rest day for many employees who work five-day weeks now, a day off-in-lieu is not mandatory.

When do you get paid time in lieu?

If an employee does request to be paid overtime instead, they must be paid the amount owed their next pay cycle. When an employee is terminated (either at the direction of the employee or employer), they are to be paid out any time in lieu which has not been taken.

When to use time off in lieu of annual leave?

Time Off In Lieu is a good alternative for salaried employees as it allows the employer to set the boundaries while rewarding employees for their extra effort and commitment. TOIL is earned and taken by the employee in addition to their contractual annual leave entitlement.

When to take a day in lieu holiday?

You can choose when you want to take your day in lieu (alternative holiday), but it needs to be taken on a day you’d usually work. If you can’t agree on a day, your employer can choose one for you, but they have to tell you at least 14 days before the day. They can’t take your day in lieu (alternative holiday) away.

When to use time in lieu ( toil )?

You’ll most commonly use time off in lieu (TOIL) when you require employees to work extra hours or days. TOIL is useful in environments that encourage flexible working. It allows employees and your business to negotiate working hours. This post explains how it functions in an organisation and how you can utilise it. What is time in lieu?