What is Time In Lieu?

By Abhishek Kathpal | Updated 26 July, 2022

An employee receives time in lieu, or time off from work, in exchange for working beyond regular business hours. Lieu means "instead," therefore, Therefore, when an employee requests time off instead of pay, they are foregoing compensation for overtime work.

What is Time In Lieu

Time In Lieu meaning and definition

When a company grants time off to employees who have worked more than their agreed-upon hours, it is referred to as time in lieu, or Lieu. In essence, it acts as a substitute for salary, allowing an employee to use any extra they work toward their yearly leave.

Can an employee be paid for Time In Lieu?

It is up to the company and employee to decide when an employee can take the time off when they have earned a Lieu by working extra. However, it is a specific requirement of UK law that employees use all of their earned yearly leave.

When can workers use their time in lieu days?

Employer and employee come to an agreement on the conditions governing when employees may take the time off in lieu. When an employee uses a day in lieu can be decided by you, the employer.

By keeping an eye on holidays and employee counts, you can quickly determine times when the business will be least disrupted. This will allow workers to continue accruing days off instead of pay and use them during these times. Employers are advised to treat staff fairly when a day off in lieu is used.

How can I offer my staff time in lieu?

If you want to give your employees time off in place of pay, you need to consider each situation specifically. It is best to consult with each employee and team to confirm that time in lieu is the right course of action as it is not enforced. There may be workers who would rather get compensated than take the extra days off.

How much Time in Lieu can an employee accumulate?

Employees can generally accrue as many hours instead of pay as they choose, provided they use the time within six months after accumulation.

To prevent any needless hardship for your company, it could be a good idea to set up your time-in-lieu policy.

What Advantages Come With A Lieu Policy?

Worker vacation is required. They benefit psychologically from it as well as it is a legal necessity. Whatever your working time policies and contracts may state, the truth is that employees who have a better work-life balance are happier both personally and professionally.

About the Author

Abhishek Kathpal

Abhi is the co-founder at Longlist.io. Funded by US based OnDeck, Longlist is currently enabling 50+ businesses to increase their candidate and client reach outs, automating the workflow across stages.