Time off in
Lieu has been extended by the Fair Work commission into the Modern Awards.
It is not
uncommon for workers to want to enjoy the rewards of their hard work with
something other than cash.
For many,
time off in lieu for overtime worked (TOIL) can be put towards creating a long
weekend or used for family and personal activities. This can be a greater motivator than
money.
For business
it can be a win-win arrangement as it can save a owner money and also good
workers will use this time for person reasons, rather than taking a “sickie”.
83 of the
122 modern awards already provide for (TOIL).
Of those, 60 provide the TOIL is calculated at the ordinary rate and the
remaining 23 modern awards provide TOIL at the overtime rate.
The Fair
Work Commission has ruled that the TOIL should be inserted into the remaining
awards.
What steps do you need to take in
implementing a TOIL arrangement?
1) You may agree in writing to the
employee taking time off instead of being paid for a particular amount of
overtime that has been worked by the employee.
2) A TOIL agreement can also be made by
an exchange of email or SMS messages with you.
3) The period of time off that an
employee is entitled to take is the same as the number of overtime hours worked
e.g. three overtime hours = 3 hours of TOIL.
4) TOIL must be taken within the period
of six months after the overtime is worked at times agreed by the employee and
employer.
5) Copies of any TOIL agreements must be
kept as an employee record.
6) No undue influence or undue pressure
is to be exerted onto an employee to make or not make a TOIL agreement.
7) An employee may request a TOIL
agreement as a flexible working arrangement. You cannot refuse the agreement except on
reasonable business grounds.
8) A policy outlining the TOIL and how
it works should be developed and all employees made aware of what the agreement
will include.
9) You must pay out the overtime if:
(a) TOIL is not taken within six months;
(b) The employee requests it to be paid
out; or
(c) The employee’s employment ends
You must not
knowingly or recklessly make a false or misleading representation about an
employee’s entitlements under a TOIL agreement.
You should
know what the modern award that applies to your business has in terms of a
TOIL arrangement.
TOIL arrangement.
Help is available
End2end can
help a business get ahead of their competitors with tailored staff management
strategies, call us on 02 8977 4002 to see how we can help you.