The way people work is evolving in the modern world.
New and changing methods of working, leading teams, and operating a business have been brought about by information technology. As the number of people working typical “9 to 5” hours declines, businesses have forced to change to become more appealing and forward-thinking employers in 2023.
Your personnel may occasionally need to put in extra hours or days due to people’s erratic schedules. Unpaid overtime is rarely well-received, even while there is no legal obligation to compensate for time beyond what is contracted (as long as the minimum wage is paid). Regular and unappreciated work does not result in contented employees.
Employees should ideally be paid for overtime, but budgets don’t always permit this, particularly if the extra occurred during a difficult cash flow period. This problem isn’t intractable or unduly complicated, and it doesn’t have to cause anxiety or confusion.
Offering time off in lieu, or TOIL, is one technique to guarantee that employees who put in extra hours are adequately compensated without placing a financial burden on the business.
‘In lieu’ implies ‘instead of’.
It alludes to paid time off “instead of” extra compensation for working more hours than specified in an employee’s contract. In essence, it is an extra holiday allowance. An employee who worked five days a week under a four-day contract would be entitled to one day off “in lieu” under such a policy. They could claim 5 hours if they worked 40 hours a week, even though they were under contract for 35.
Advantages of taking lieu days
Offering TOIL instead of paying overtime has a number of benefits.
Gives you time back
Time is becoming a more valuable resource in today’s hectic, demanding, and frequently stressful workplace, and many workers would find that taking a lieu day is more beneficial than receiving extra money.
Additionally, it’s advantageous to both parties and valued in high-paying positions when time away from the office may be more motivating than money. This is especially true if it comes after a really taxing time.
In fact, accrued “lieu days” at the end of a project could be a strong motivator for some people to put in extra or longer hours in order to fulfill important deadlines.
Keeps costs under control
Time off in lieu of overtime allows businesses to avoid a cost they might not be able to cover without upsetting their employees or sowing the seeds of resentment that could cause workplace conflicts or challenges with employee retention.
This is especially important if the circumstance that led to the requirement for more staffing coincides with a period of financial or professional difficulty when management’s attention may need to be diverted.
Disadvantages
However, there are a few restrictions and drawbacks to a TOIL policy that should be taken into account.
Tough to implement consistently
First of all, it cannot be implemented as a top-down substitute for overtime. Employees in certain industries, especially those in lower-paying positions, might object to internal promotion of such a policy since they would rather be paid overtime.
Most certainly, not every member of your crew will like it equally. Additional compensation may be more appealing to part-time employees than time. Therefore, it is crucial to take into account the demands, circumstances, and demographics of your staff. In this instance, individual choices must be honored and respected, and these must come before the demands and circumstances of the business.
Difficult to measure indirect costs
Offering TOIL has costs, even though they are not immediate or direct. The employee’s time will eventually be reimbursed by the company, though it might not be convenient. However, we would contend that rather than highlighting a flaw in time in lieu rules, if the company is frequently depending on employees to put in extra hours and cannot afford to pay for overtime or time in lieu, there is a bigger business problem that needs to be addressed.
Another thing to think about is that time will need to be spent developing and approving a policy that outlines the procedures for allocating and using time in lieu. This is necessary to prevent a situation where employees must work extra hours to cover those who are taking time off.
Even if you could believe that the advantages of the policy outweigh this, this adds another administrative load.
and remember…
Never substitute Lieu days for a transparent, equitable yearly leave policy.
It is crucial to stress that a “time in lieu” policy cannot be imposed or taken for granted, and it should never be abused to coerce workers into putting in excessive or antisocial hours.
Here, a lot depends on how the policy is communicated. It is likely to be more well-received than a “take it or leave it” strategy if management makes it plain that paid overtime is not an option but that employees must work more hours and that the company can provide time in lieu.
In conclusion
In conclusion, the appropriateness of a time off in lieu policy for your business rests on how well it aligns with your employees’ beliefs and priorities.
We advise being open and honest; consult your staff to learn about their opinions. You can encourage this internally if they are amenable to such a policy or if they do welcome the chance for more paid time off.
When properly implemented, TOIL provides a rational, equitable, and win-win solution to seasonal or periodic variations in employment needs as well as very hectic or stressful times.
Although it has drawbacks, the majority of the risk can be reduced with good management, and a number of online tools, including Leave Dates, which can assist you in scheduling and approving time taken in lieu, can lessen the administrative load.
Additionally, keep in mind that any non-enforceable regulation must respect and honor the individual preferences of people who choose to opt out in order to be successful.
A time off in lieu policy could significantly improve your workplace and the wellbeing of your employees if you listen to them and understand their needs and motivations.
