How to create a TOIL policy

Create a Time off in lieu (TOIL) policy that you can apply to your employees to calculate their overtime or undertime hours.

Saad Saeed avatar
Written by Saad Saeed
Updated over a week ago

🎯 For admins looking to set up TOIL policies.

  • Disclaimer: It is your responsibility to ensure compliance with the relevant rules for leave and to configure Planday to be suitable for the particular circumstances of your organisation and employees. If you are unsure, please obtain professional legal advice.

  • See Planday's TOIL management to find out which set-up fits your needs.

  • Are you an employee? See How to apply for leave.

Planday enables you to monitor your employees' overtime hours and provides the option to compensate them with time off for their extra work.

This guide outlines the process of creating a TOIL policy and explains what each option means when setting up.

Create a TOIL policy

Go to Settings > Leave & Overtime (or Absence, Overtime, Vacation) > Policies > press the Create policy button. screenshot.001.png

Next, select Time off in lieu policy. screenshot.003.png

You can then set the details for your TOIL policy.

Configure policy details

  • Name: Choose a name for your TOIL policy, such as "Compensatory time off" or "TOIL". It's recommended to use names without years for reusability.

  • Payment: Here, you can select Depending on the balance unless the hours are always company-paid or deductible.

  • Billing mode: Set this to Hours.

  • Initial value: This represents the starting balance of hours on the account at the creation date.

    • It should be set to zero "0" if the employee begins with no hours.

    • You can manually adjust the initial balance for each employee even after the TOIL account has been applied.

  • Reset day: Choose the date when the account should reset. It's recommended not to set a reset day and use the TOIL account like a balance accumulating hours. This allows the account to increase and decrease with hours transferred as overtime or undertime. Additionally, there are other reasons to avoid setting a reset day, such as:

    • The remaining hours are not automatically transferred to the new account.

    • If adjustments are made by a manager to TOIL after the reset date, the adjustments will apply to the new account instead of the correct one.

  • Renew automatically: It's advisable not to select this checkbox as enabling it would require setting a reset day for the account.

  • Create automatically: If selected, the policy will automatically create TOIL accounts for all new and existing employees who match the selected options. Leave this unchecked for manual control over which employees receive an account and manually apply the policy in the next steps.

    • Please note: The initial value will automatically apply to matching employees, but you can edit it manually per employee if needed in the future or to delete allocations.

  • Allow negative balance: Check this box if the account can have a negative balance. Not checking it will not allow a negative value. For example, if an employee has a balance of 2 hours and you deduct 5 hours from their account, the policy won't allow it as the balance becomes negative. It's recommended to allow for a negative balance.

  • Departments, Employee groups, and Employee types: If this policy is applied automatically, use these options to limit which employees can use this specific TOIL policy.

  • Settings Availability group: This setting determines which leave accounts should take priority, but it's not applicable for setting up TOIL. Leave it on "No priority" (always available).

  • Settings Payroll: Set up Salary codes for this leave account here. These salary codes will be used in your payroll reports to display detailed leave information and help your Payroll integration modules understand the type of leave being reported.

Once you've configured your desired settings, press Save.

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