Time Off in Lieu (TOIL)

A Flexible Solution for Managing Overtime, Ensuring Work-Life Balance, and Complying with Labor Law Article 107

As organizations strive to improve the work environment and enhance employee satisfaction, it has become essential to offer flexible options for managing overtime. One of the most prominent solutions that balances operational efficiency with employee well-being is the Time Off in Lieu (TOIL) system.

This is an organizational option that allows employees, with management approval, to replace monetary compensation for overtime hours with paid leave added to their personal leave balance.

Accordingly, the overtime policy has been updated to allow employees to choose their preferred type of compensation—either monetary or time off. All compensation requests remain subject to HR approval before implementation.
This option is activated based on the company’s policy and becomes available to the employee when logging overtime.

✅ Important Note: The maximum number of days that can be requested as compensation for overtime hours is 30 days per year (in accordance with labor law).

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Setting Up the Overtime Policy (TOIL)

1. Activating the Option in the System

When the TOIL feature is activated, the system administrator can define how leave days are calculated based on overtime hours. The system provides three options for setting the conversion rate:

Conversion Rate Options:

• 1.5 (Default):

• 2x:

• Custom:

You can enter the number of days, and the system will calculate the equivalent overtime hours.

Example:
If you enter 1, this means every 8 overtime hours grant 1 day off.
If you enter 2, it means every 4 hours grant 1 day, and so on.

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🕒 Expiry of TOIL Balance

When a TOIL balance is earned through overtime work, it must be used within a specific timeframe. This section explains how the system manages TOIL balance validity.

✅ Important Notes:

• Validity is calculated individually for each TOIL accrual, and is based on the date of the overtime work, not the request date.
• TOIL balance automatically expires if not used within 60 days from the earning date (per labor law, unless this period is modified).
• Each TOIL accrual is tracked with its date and expires after the defined period.
• Partial usage is allowed:
  You can use part of the TOIL balance before it expires, and the remaining balance will still be subject to expiration.
• Oldest balance is used first:
  When consuming TOIL balance, the system automatically deducts the oldest balance first.

🔗 Click here to read an article explaining how employees can request time off as compensation for overtime.