SmoothPay supports automatic conversion of excess time into TOIL (Time Off in Lieu) or RDO (Rostered Days Off).
This article explains how to configure TOIL/RDO thresholds, select eligible paycodes, and understand how the system generates banked time.
Important Rule
Automatic TOIL/RDO and automatic overtime cannot operate together.
Only one can be active for any employee.
Initial Setup (Company-wide Defaults)
Go to Settings
Select the Options tab
Locate TOIL (Flexi-time) options
Configure:
TOIL basis
Select whether the TOIL threshold is daily, weekly, or per pay period.
TOIL cutoff
Enter the number of hours allowed before excess hours are banked.
RDO on termination paid as overtime
If enabled, the remaining TOIL balance will be automatically paid out as overtime on termination.
Once TOIL basis, TOIL cutoff & RDO on termination paid as overtime have been correctly configured click Save.
Applying TOIL Settings to All Staff
In Settings
Select the Options tab,
Click the spanner icon next to TOIL basis
Select Apply RDO settings to all staff
New employees will inherit these settings automatically.
Determine Which Paycodes Count Toward TOIL or RDO
SmoothPay needs to know which paycodes should be included in the automatic calculation.
To configure this:
Go to Codes
Select the Work codes category
Select the paycode
Click the Edit button at the bottom of the code list
Tick Counts towards TOIL/flexi-time
Click Save
Repeat for any other paycodes that should contribute to automatic TOIL/RDO calculations
Notes:
This can be applied to certain leave codes if required
Most employers include ordinary hours only
Per-Employee Settings
Where TOIL/RDO differs for individual employees:
Go to Staff
Select the Contract tab
Select the Overtime/TOIL tab
Adjust TOIL basis or TOIL cutoff
Click Save
How Automatic TOIL/RDO Works
When timesheet hours exceed the configured threshold:
SmoothPay maintains ordinary hours exactly as entered
Excess hours are converted into TOIL/RDO
A negative leave transaction is generated in the payrun
These hours become part of the employee’s TOIL/RDO leave balance
TOIL/RDO is stored as time, not as pay.
Automatic TOIL/RDO Example
Threshold: 8 hours per day
Paycodes included: Ordinary
Timesheet entries:
Tuesday: 9 hours
Thursday: 9.5 hours
After saving:
Ordinary remains 42.5 hours total
TOIL generated: 2.5 hours
A negative leave transaction for 2.5 hours is created
Effect on the pay:
The employee is paid for 40 hours
2.5 hours are banked as TOIL/RDO
This ensures the correct reduction from pay while accruing time for later use.