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  • Recording time off in lieu of overtime

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Some employers allow employees to accrue "Time Off in Lieu" of payment for overtime hours. In the past some users have used the Lieu - Alternative Holidays code to track these balances.

With the Holidays Act 2003 we recommend that the Alternative Holidays (Lieu) pay code is only used for Alternative Holidays as defined by the Act, in other words when employees work on a Statutory Holiday, or exercise their right to an alternative holiday under the act.
We recommend the use of a separate pay code and an accumulator to track other "Time Off in Lieu" balances.


UI Expand
titleAdding an accumulator to employee
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the applicable employee then click OK.
  4. Click the Pay Default/Totals tab.
  5. Enter the employee's agreed normal hours against the ORD pay code and leave the type set as Variable.
  6. Add the TOIL Pay Code to the employee's Pay Defaults by either pressing F4 (to select from the list) or using the New option.
  7. Click the Accumulator tab. You will see that the accumulator for TOIL will have been automatically added.
  8. [Optional] - Select the option Show on Payslip.
  9. Enter the employee's current balance of Time Off in lieu if they have previously accrued hours, in other words 16.00.


  • If the employee owes hours the balance will need to be entered in the negative form, in other words - 16.00.
  • If the Lieu pay code has previously been used to record "Time Off in Lieu" the balance of Alternative Holidays on the employees Leave Details > Other Leave tab should be edited.

TOIL Pay Code

In this example, Megastar Ltd has an agreement that allows employees to accrue time off in lieu when they work overtime hours. Their employee, John, has worked his normal 40 hours plus another 4 hours of overtime which needs to be accrued as time off in lieu.


UI Expand
titleAccruing TOIL

In the employee's Enter Pays window:

  1. Enter 44 hours of ordinary time.
  2. The TOIL pay code will automatically be populated with the additional hours worked. (the negative entry accrues to the accumulator)
  3. Complete the pay as normal.
UI Expand
titleUsing TOIL
In the employee's Enter Pays window:
  1. Enter the hours of Ordinary Time, for example 36.
  2. The TOIL pay code will automatically be populated with the hours taken in lieu. (The accumulator balance will decrease by the lieu hours taken)
  3. Complete the pay as normal.
UI Text Box
The Accumulator Balances Report in Payroll provides a full report of employee's current balances for any accumulators.
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titleRelated topics

Payroll user guide