Time Off in Lieu (TOIL) Policy
Every hospitality business that uses overtime needs a clear TOIL policy in its employee handbook. Without one, staff do not know whether extra hours will be paid or banked, what rate applies, or when they need to use their time off. Managers end up making inconsistent decisions, and untracked balances become a financial liability.
This guide helps you create that video. It covers what to include, how to structure your recording, and the questions your team will ask after watching it.
Key Takeaways
- Explain the accrual rate: Open your video by stating whether TOIL in your business accrues hour for hour or at an enhanced rate, and make sure every team member understands how extra hours translate into time off
- Set clear limits and deadlines: Cover the maximum TOIL balance your business allows and the timeframe within which banked time must be used — this prevents balances from growing to unmanageable levels
- Walk through the approval process: Explain how employees get overtime approved in advance, how they request to use their TOIL, and who signs off on both
- Cover what happens when someone leaves: Make clear whether untaken TOIL is paid out on termination and how the payment is calculated, so there are no surprises
- Link to official sources: Direct your team to the government guidance for your location so they can check the rules on overtime compensation themselves
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Why your team needs this policy
TOIL sounds simple in principle: work extra hours now, take time off later. In practice, it raises several questions. At what rate is TOIL accrued \u2014 hour for hour or at an enhanced rate? By when must it be taken? What happens to untaken TOIL if someone leaves? Who approves when it can be taken?
Without clear answers, TOIL balances can accumulate to unmanageable levels, employees and managers can disagree about what was agreed, and the organisation may face financial liabilities for untaken time. The hospitality sector is particularly prone to these issues \u2014 long shifts, seasonal peaks, events that overrun, and short-notice cover requirements all generate overtime.
There is also a well-being dimension. TOIL is meant to compensate employees for extra hours worked by giving them rest. If employees consistently work overtime but never actually take their TOIL, they are working excessive hours without either the financial compensation of overtime pay or the restorative benefit of time off.
What to cover in your policy video
State the accrual rate. Open your video by explaining exactly how TOIL works in your business. Does one hour of overtime earn one hour of time off, or does it earn time at an enhanced rate? Make this unambiguous \u2014 it is the single most important detail in a TOIL policy and the most common source of disputes.
Explain the approval process. Walk through how overtime is approved in advance. Employees should have management sign-off before working extra hours with the expectation of TOIL. This prevents people from unilaterally building up balances that the business cannot accommodate, and ensures the overtime is genuinely needed.
Cover tracking and record-keeping. Explain that every hour of TOIL earned and every hour taken is recorded. Show your team where they can check their TOIL balance. Relying on memory or informal notes leads to disputes \u2014 a system that logs the date, the extra hours worked, and when they are subsequently taken protects everyone.
Set a maximum balance and deadline. Explain the cap on how much TOIL can be accumulated and the timeframe within which it must be used. When the cap is reached, explain whether further overtime is paid out at the applicable rate instead. This keeps balances manageable and ensures employees actually take their rest.
Explain what happens on termination. State clearly whether untaken TOIL is paid out when someone leaves and how that payment is calculated. If your business does pay out TOIL, explain when the payment will appear. If it does not, make this clear from the outset to avoid surprises.
Encourage timely use. Use your video to set the expectation that TOIL should be taken regularly, not saved up. Explain that TOIL exists to give people rest after working extra hours, and that letting it accumulate defeats the purpose. Some businesses build this into their approval process \u2014 no further overtime is approved until the existing TOIL balance is below a certain threshold.
Review TOIL data regularly. Let your team know that aggregate TOIL data is reviewed across the business. If one department is consistently generating large TOIL balances, that may indicate understaffing or poor workload management rather than genuine occasional overtime.
How to structure your video
Keep it under five minutes. TOIL is a straightforward topic once the rules are clear. Cover the accrual rate, the approval process, the cap, and what happens when someone leaves. Three to five minutes is enough.
Have the right person present. This should come from whoever approves overtime and manages the rota \u2014 usually the general manager or operations manager. Hearing the policy from the person who will actually sign off on TOIL gives it authority.
Use a concrete example. Walk through a realistic scenario: \u201CYou stay two hours late to cover a busy service on Saturday. Here\u2019s how that overtime gets logged, what it translates to in time off, and how you request to take it.\u201D A specific story is far more effective than abstract rules.
Show the tracking system. If your business uses an app or spreadsheet to track TOIL, screen-record it. Show how overtime is logged, how the balance updates, and how to submit a request to use banked time.
Address the pay-vs-time-off question directly. Many employees want to know whether they can choose overtime pay instead of TOIL. If your policy allows a choice, explain how. If it does not, say so clearly. This is the question most people will have in their head while watching.
Common questions your team will ask
After watching your video, these are the questions that will come up. Anticipate them in your recording or be ready to answer them via messaging:
- \u201CDo I get time off at the same rate, or is it enhanced?\u201D \u2014 State your accrual rate clearly. If different rates apply at different times, explain the distinction.
- \u201CCan I choose overtime pay instead of TOIL?\u201D \u2014 Explain whether your policy offers a choice and, if so, how to indicate a preference.
- \u201CHow long do I have to use my TOIL?\u201D \u2014 State the deadline and explain what happens if the time is not taken within that period.
- \u201CIs there a limit on how much TOIL I can bank?\u201D \u2014 Explain the maximum balance and what happens when it is reached.
- \u201CDo I get paid for untaken TOIL if I leave?\u201D \u2014 State your policy on termination payouts clearly so there are no surprises.
- \u201CDo I need approval before working overtime?\u201D \u2014 Explain the advance approval process and what happens if overtime is worked without prior sign-off.
- \u201CWhere can I see my TOIL balance?\u201D \u2014 Show them the tracking system or explain where to find their current balance.
- \u201CWhat if I\u2019m asked to work overtime but I don\u2019t want TOIL?\u201D \u2014 Explain the options available and how the conversation should happen with their manager.
Official guidance
The rules on overtime compensation and time off in lieu vary by location. Before recording your video, check the official guidance for your jurisdiction:
| Location | Source |
|---|---|
| United Kingdom | Maximum weekly working hours \u2014 GOV.UK |
| European Union | Working Time Directive 2003/88/EC \u2014 EUR-Lex |
| United States | Overtime Pay \u2014 U.S. Department of Labor |
| Canada | Hours of work \u2014 Canada.ca |
| Australia | Overtime and penalty rates \u2014 Fair Work Ombudsman |
How Pilla helps
Pilla turns your TOIL policy into a living part of your employee handbook:
- Record your policy video — Film a short video explaining your TOIL policy, what employees need to know, and how it works in your organisation. Staff watch on their phone, and you track who has seen it.
- Onboarding integration — Include the TOIL policy as part of your onboarding checklist, so every new starter acknowledges it during induction.
- Policy updates — When your policy changes, push the updated video to all staff and track who has watched the new version.
- Audit trail — Every video view, policy acknowledgement, and onboarding completion is recorded with timestamps, ready for any compliance review.
- Messaging — Use in-app messaging to answer questions about TOIL directly, keeping sensitive conversations out of group chats.