What is time off in lieu (TOIL)?

Time off in lieu (TOIL) is when an employee is granted leave instead of overtime pay for working beyond regular working hours. In the UAE, many organizations apply TOIL when employees work on weekends, public holidays, or outside regular office hours, as per their internal HR policies. TOIL should always be pre-approved and clearly recorded within an HR management system to maintain clarity and alignment between employees and management.

What is compensatory time off policy in UAE?

In the UAE, if an employee is required to work on a public holiday or during approved leave, they are entitled to one of the following:

• A compensatory day off in lieu of the holiday worked, or
• Payment for that day at their normal daily wage plus at least 50% of their basic salary.

The method of compensation is usually outlined in the employment contract or the organization’s leave policy, with TOIL often used in sectors where flexible scheduling is common.

What are the types of compensatory leaves?

Common types of compensatory leave offered by companies in the UAE include:

• Time off in lieu (TOIL) : For extra hours beyond the standard workday.
• Public holiday in lieu : When work is performed on national or religious holidays.
• Weekend or off-day compensatory leave : For shifts during designated off days.
• Field duty compensatory leave : Common in roles requiring irregular schedules or travel.

What are the benefits of offering time off in lieu?

Offering time off in lieu (TOIL) provides several benefits to both employees and employers:

• Cost-effective : Reduces the financial burden of overtime payments.
• Employee well-being : Provides rest periods, promoting work-life balance.
• Flexibility : Allows for adaptable scheduling during peak work periods.
• Compliance : Ensures adherence to UAE Labour Laws regarding employee compensation.

What is the difference between time in lieu vs overtime pay?

The primary distinction between the two lies in the form of employee compensation:

• Time in lieu (TOIL) : Employees receive equivalent time off for extra hours worked.
• Overtime pay : Employees are compensated financially, typically at premium rates.

In the UAE, the Labour Law stipulates that employees working beyond normal working hours are entitled to additional pay. However, employers may offer TOIL as an alternative, provided it is mutually agreed upon and documented.

Frequently Asked Questions

How can I ask my employer for time in lieu?

Requesting time in lieu is a standard process that follows your company’s internal policy on paid time off. Typically, employees record any extra hours worked, which are then submitted for managerial approval. Once verified, these hours can be converted into compensatory leave. In the UAE, this process should also align with labour law requirements to ensure compliance and fairness.

What does compensatory leave mean?

Compensatory leave or comp time is leave granted in exchange for extra hours worked beyond normal working hours. Using infithra, HR managers can easily track overtime and automatically allocate compensatory time off to employees. The system ensures calculations align with UAE labour law, giving employees fair paid time off while helping employers manage workforce flexibility.

How to calculate time off in lieu?

infithra automates the time off in lieu calculation based on hours worked beyond standard working time. The HR system applies custom rules that comply with UAE labour laws, considering overtime pay rates and internal company policies. It ensures accuracy and consistency when managing comp time, simplifying HR processes and reducing errors.

Can employers in UAE limit time in lieu?

Yes, under UAE labour law, employers may set policies regarding limits or expiration of day off in lieu. infithra helps enforce these policies by allowing HR teams to configure thresholds, expiry dates, and approval workflows for compensatory time off. This ensures legal compliance while maintaining a flexible workforce structure.