Region: This article is for all Deputy customers except those with Australian accounts. If your account URL ends in .au, see AU Leave, or if you use Deputy Payroll (AU), see Deputy Payroll (AU) Leave.

Features: Some of the features described in this article may not be available on your current Deputy plan or may require an add-on. See Introduction to Leave Management for a breakdown of available features by plan.

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.

Before you read

Target audience: This article is for users with System Administrator, Payroll Administrator, or Advisor access.

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 3 steps for setting up and managing TOIL

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

Deputy already includes 10 leave policies for the US and 13 for the UK, including a Time Off In Lieu policy. 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 on setting up leave policies.

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

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.

Note: By default, TOIL will not be exported to your payroll provider. This can be edited on the individual pay rules and by configuring your custom payroll exports. Not all payroll providers and integrations support TOIL.