Employer Assist regularly responds to member enquiries about the option of employees accruing time off instead of overtime payments.
Some employers mistakenly assume that the accrual of TOIL is on a time for time basis. Unfortunately, this is not the case under the Vehicle Manufacturing, Repair, Services and Retail Award 2010. Instead, TOIL accrues at the overtime rate. I.e. 1 hour overtime = 1.5 hours TOIL.
Clause 28.3 of the award states:
28.3 Time off instead of payment for overtime may be provided if an employee so elects and is agreed to by the employer.
(a) Time off instead of payment for overtime must be taken at a mutually convenient time within four weeks of the overtime being worked. However, an employee with the agreement of the employer may elect to bank up to eight hours of time off instead of overtime to be taken no later than eight weeks after the overtime was worked.
(b) Any agreement reached in accordance with this subclause should be placed in writing and recorded with the employee’s wage records and for file. Any hours banked and cleared in accordance with this subclause must be recorded in the employees wage records.
(c) Time off instead of payment for overtime must equate to the overtime rate i.e. if the employee works one hour overtime and elects to claim time off instead of payment the time off would be equal to time and a half.
(d) Provided that where an employee’s employment is terminated or the employee resigns or the entitlement has not been taken, the entitlement will be paid out at the rate at which it was accrued.