Rules with Time in Lieu

• 

  MercSal on 12/05/2016 - 12:38

  +1

  Hi,

  Best practice with time in lieu is to let the employee take it as they choose at a mutually agreeable time. What you are describing is more akin to flex time, but either way.

  if a staff worked 40 hours one week. I will paid them 38hrs. Will I add 2 hours to time in lieu? or 2hours*1.5 = 3hours?"

  Correct. They would accrue three hours in this case. TOIL (Time off in lieu) is accrued at overtime rates normally.

  Then the next week they do 36 hours (because they want to leave early) then do I pay them 38 (as contracted) and deduct 2hours from lieu?

  Correct. You would not deduct at overtime rates.

  There are some variations that are reasonably standard, but I'd want to have an idea of the Award/contract/EA before discussing them

• 

  pjetson on 12/05/2016 - 12:38

  +1

  Unless I'm misunderstanding, you seem to have two conflicting rules - firstly that any time worked over 38 hours per week is "banked", and secondly that any time worked over 38 hours is paid as overtime. When you have two conflicting rules, you have problems.

  So, the question is what are you trying to achieve? Do you want your staff to always bank their time, or do you want them to always be paid overtime? Or do you want them to be able to choose on a day by day basis?

  If you've agreed with your staff that any hours worked in excess of 38 hours per week is paid at overtime rates, then the time must be banked at overtime rates. That's probably not what you're trying to achieve.

  I may also be misunderstanding your maximum of 15.2 hours. Do you mean that once that limit is reached, that the employee is then unable to work more than 38 hours in a week? I'm not sure what you mean by them having to take time off after 15.2 hours is reached. Isn't taking time off the whole idea behind banking their time?

  • 

    Donaldouk on 12/05/2016 - 19:16

    Well with the awards, I will have to pay overtime.

    I guess, I am trying to find the most cost effective way.

    I have an agreement with the staff that if they reach 15.2 in banked time, they just have to used it within that month. One of the staff will try everything to stay on to make up the time. Lol.

• 

  altomic on 12/05/2016 - 14:06

  where I work, if you "voluntarily" work extra hours then it goes to bank. but you can't have more than 36.25 hours (5 days at 7.25 hours) in bank. you have to then use some before you can add more. otherwise additional hours can't be banked and you lose.

  if my work asks me to work extra hours then I am paid overtime at 1.5*. i can't "bank those hours" at either the 1.5 or normal rate.

• 

  PVA on 12/05/2016 - 14:14

  +2

  The extra work hours is mutually agreed as time in lieu I hope, not you forcing that any extra hours (OT) is time in lieu and never offer the option to be paid.

  last time you were thinking staff shouldnt be paid sick leave when they went on leave.

  I really think you need to speak to some specialist area about how to pay staff correctly, not only for the staff but so you don't get yourself in big trouble. Much better than asking a random Bargain website, people answering here may be on completely different agreements and it doesnt transfer to your business.

  • 

    Donaldouk on 12/05/2016 - 19:22

    Yes, I must admit I have started this business last October and it has been a learning curve.

    The extra hours have definately been mutually agreed.

    I have recently joint an association in my field of work, and will seek guildance from that. 😉

    • 

      PVA on 12/05/2016 - 19:28

      +1

      That's a great idea. Your business accountant should be able to help you too, as well as your solicitor.

      • 

        Donaldouk on 12/05/2016 - 20:14

        Yes my accountant have been great. But the solicitor charges Everything, lol.

• 

  bobbified on 12/05/2016 - 15:00

  +2

  As far as I've seen, overtime pay is generally valued higher than the TOIL because companies typically pay overtime at a rate of 1.5 or 2.0 times the normal pay, yet TOIL is accrued at on a time-for-time basis.

  For example, if someone's normal working week is 38 hours and they worked 40 hours that week, they would get 2 hours of overtime at either 1.5 or 2.0 times their normal rate (ie, the equivalent of 3 or 4 hours). If they were to take TOIL, they would only be accruing two hours.

  Anyone who's interest can have a read of this article from last year:
  http://www.smh.com.au/national/workers-can-take-time-off-ins…

  I, for this reason, always make sure my overtime is paid instead of simply being accrued as TOIL.