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TOIL ticks into time for time

TOIL ticks into time for time

Time off in lieu could start to replace overtime payments for employers. Instead of paying staff for hours worked in overtime there may soon be the flexibility for employers to offer staff time off instead. For each overtime hour worked, an employee can take the same amount of hours as time off in lieu (TOIL), which is also being referred to as ‘time for time’.

This change could impact 113 modern awards, offering the choice to many thousands of workers who do not currently have access to time off. The proposed TOIL option has impressed a large group of employees, many whom value time off more than additional remuneration.

A decision should be issued in September 2015. Until then, no changes will be made to the awards.

Those awards which already have TOIL provisions will not be amended.

The following limitations will be put into play:

  • An employer cannot exert undue influence or undue pressure on an employee to take TOIL instead of overtime pay
  •  Within four weeks of the overtime worked, the employer and employee will have to agree on when the TOIL will be taken
  •  The TOIL must be taken within 12 weeks of the overtime being worked
  •  If the TOIL cannot be decided upon within 4 weeks, or taken within 12 weeks, the overtime remuneration must be paid in the next pay package

 

If implemented, the TOIL change will affect a significant number of awards, including;

  •  Banking, Finance and Insurance Award 2010
  •  Black Coal Mining Industry Award 2010
  •  Cleaning Services Award 2010
  •  Real Estate Industry Award 2010
  •  Restaurant Industry Award 2010
  •  Hospitality Industry (General) Award 2010

 

The proposed change will exclude the following awards:

  •  Building and Construction General On-Site Award 2010
  •  Joinery and Building Trades Award 2010
  •  Seagoing Industry Award 2010
  •  Any awards which currently contain TOIL provisions

 

If you are an employer and would like to look into offering TOIL to your employees once the change is implemented, you may need to update your current employment documentation, putting processes in place to ensure the conditions you offer are compliant with the Fair Work Act. Call Employsure on 1300 651 415 for advice and support in implement this change.

Sourced: The Australian Financial Review and HC online.

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