Setting up time in lieu

"Time-in-Lieu" is a leave type that is not specifically covered by the Holidays Act 2003. Prior to the Holidays Act 2003, days accrued for working on a public holiday were known as "Day in Lieu" or "Lieu Time" but since the implementation of the Holidays Act 2003 they are now known as Alternative Leave.

When an employee works extra hours, they may be paid overtime or can take the equivalent time off at a later date, often depending on company policy. Sometimes this is done on a casual and informal basis in a company while at other times it is managed quite formally. Some employers find using "Time in Lieu" to be a useful strategy and needs to be managed carefully.

The following steps will enable Time in Lieu to be setup and applied to an employee.

Step 1: Set up an Entitlement as per the image below.

The next step is to setup 3 different pay items:

• TOIL Accrual - Needs to be Accrued Pro Rata
  
• TOIL Taken
  
• TOIL Calculation - this pay item will ensure that this is not paid in the pay that TOIL is accrued and that it doesn't show on the payslip.
  
  

Update the "Accrued from" field in the TOIL entitlement and set it to accrue from TOIL Calculation.

Add all 3 items to the employee's standard pay details.

Enter the Hours of Time in Lieu the employee has accumulated in the Quantity column against the TOIL Calculation pay item in the Current Pay.

The balance is shown in the Entitlement Balances report and can be paid at a later date using the TOIL Taken pay item in the current pay.