IMPORTANT NOTICE

Information provided by Deputy is intended for general guidance purposes only and is not a substitute for professional legal or financial advice. Deputy does not accept liability for actions taken based on this information.
Employers are responsible for ensuring their employees are paid correctly in line with the applicable legislation, award/s, industrial instrument/s and relevant employment agreements.
For specific issues or if you are unsure about your employee/s’ entitlements, please consult a legal, financial or employment relations specialist. Deputy does not offer advice on employment law or taxation matters, including payroll specifics.

Time Off in Lieu (TOIL) is a way for team members to accrue leave for overtime hours worked, instead of receiving a cash payment for those hours.

This article summarises how Time Off in Lieu (TOIL) works in Deputy when you’re using Deputy Payroll.

Before you read

You must have System Administrator, Payroll Administrator or Advisor access in Deputy.
This feature is currently only available as part of the Deputy Payroll (AU) product.

This article covers

Understanding TOIL Accrual
The 4 steps for setting up and managing TOIL

Understanding TOIL Accrual

Time Off in Lieu (TOIL) accrual happens when your overtime pay rules are configured to record the overtime hours worked as accrued leave, rather than paying them out as overtime wages.

A key feature in Deputy is the ability to decouple the pay rate multiplier from the TOIL accrual rate.

Pay Rate Multiplier: This is the rate at which the pay would have been calculated (e.g., 1.5x or 2x the regular rate).
TOIL Accrual Rate: This is the rate at which leave hours are accrued (e.g., 1.5 hours of TOIL for every 1 hour of overtime worked).

This means you can configure your system to reflect award conditions where, for example, overtime is paid at 1.5x the regular rate, but team members can instead choose to accrue TOIL at 1.5x their overtime hours.

The 4 steps for setting up and managing TOIL

Step 1: Check the set-up of your TOIL leave policy

Deputy already comes with 10 leave policies, including Time Off In Lieu. In most cases, this default Time Off in Lieu leave policy will be sufficient as it is, but if you want to check or edit the details of this policy, check out our guide for setting up leave policies in Deputy Payroll.

You’ll also need to make sure you’ve assigned the TOIL leave policy to relevant team members.

Step 2: Add TOIL rules to your chosen overtime pay rules

In Deputy, managing TOIL starts with the pay rate. You can add TOIL rules to any overtime pay rule, using Pay Rate Builder. You can also choose whether you want to automatically apply TOIL to all overtime hours, or instead allow your team members to choose for themselves whether to take their overtime as TOIL or payment.

For step-by-step instructions, follow our guide for adding TOIL rules to pay rates.

Step 3: TOIL leave accrues and deducts based on timesheets

Your team members can now accrue TOIL hours on your chosen overtime pay rules. When your team members apply for leave via the Deputy app, they’ll be able to select TOIL as the leave type, and these hours will be automatically deducted from their TOIL leave balance. Any overtime taken as TOIL will reflect on the timesheet, just the same as other types of leave.

Step 4: TOIL leave balance figures are pulled into Deputy Payroll and reflected on payslips.

You’ll be able to view any leave balance changes on the team member’s payslip.