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Set up and process TOIL in Sage HR

How to process and manage Time Off In Lieu (TOIL) in Sage HR. Add overtime balances to a time off policy manually or automatically via Timesheets settings.

Written by Oliver Cook

Time Off In Lieu (TOIL) lets employees turn extra hours worked into time off. For example, if they work an extra hour, they can take that hour off later.

Some businesses let employees build up TOIL over time. They can then use it later, for example, to take a full day off.


How to process TOIL in Sage HR

You can add TOIL in two ways:

  • Add hours manually using Change balance. Use this if you don’t have Timesheets

  • Use Timesheets to automatically add overtime to a time off policy. Employees choose how much overtime goes to TOIL

We recommend creating a separate TOIL time off policy. This keeps TOIL balances separate from annual leave.


Create a TOIL time off policy

  1. Select your name in the top‑right corner.

  2. Select Settings.

  3. Select Time off, then Policies.

  4. Select Add new policy.

  5. Enter a name, for example TOIL.

  6. Set the policy to allocate:

    • 0 hours

    • once at the start date

  7. Select Save.

  8. Assign employees or update eligibility later.

📌TIP: For more details about setting up a time off policy, see Set up time off policies.


Add TOIL manually

Use this option if you don’t use Timesheets.

  1. Open the employee profile.

  2. Click Time off.

  3. Click Change balance.

  4. Select the TOIL policy.

  5. Enter the number of hours worked.

  6. Click Increase.

  7. Click Record transaction.

Understand the change time off balance option.


Allocate TOIL automatically

Use this if you use Timesheets.

Set overtime rules to add approved overtime to the TOIL policy. The system updates balances automatically.


Using TOIL

  • Employees request time off using the TOIL policy

  • The system deducts hours from their TOIL balance

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