RDO (Rostered Days Off), TOIL (Time Off In Lieu) and Flexitime are forms of time banking where employees accrue leave based on hours worked, which can later be taken as paid time off.
Understanding the concepts
RDO (Rostered Days Off)
Time banked from working longer hours or extra days, typically taken as full days off.
TOIL (Time Off In Lieu)
Time banked from working overtime or outside standard hours, can be taken in hours, days or other increments.
Flexitime
A flexible working arrangement where employees can vary their working hours, banking extra hours worked for later use.
Taking banked time
When an employee wants to use their banked time:
In the payrun screen, select the employee.
Navigate to the Leave Taken tab.
Select the RDO/TOIL/Flexitime leave code.
Enter the amount of leave being taken.
The system will pay the employee and reduce their banked balance.
Viewing balances
Employees' banked time balances can be viewed:
On their payslip (if enabled in leave code settings).
In the Staff screen under Leave → Entitlement.
In leave balance reports.
Payment rates
When taking banked time:
The employee is usually paid at their ordinary rate.
The specific rate depends on the leave code classification.
Some arrangements may use the rate at which the time was banked.
Expiry and limits
Consider setting rules for banked time:
Maximum balance (cap)
Limit how much time can be accrued to prevent unlimited accumulation and encourage regular use of banked time.
Expiry periods
Require time to be used within a timeframe (for example, time must be used within 12 months). Note: This may need to be managed manually as expiry is not automated in all jurisdictions.
Termination handling
When an employee terminates, banked RDO/TOIL/Flexitime may need to be paid out. This depends on your jurisdiction and employment agreements.
Configure the leave code to pay out on termination if required.
Common scenarios
Scenario 1: Weekly RDO accrual
Employee works a compressed week (4 × 10-hour days instead of 5 × 8-hour days).
Each week, 8 hours accrue to RDO.
After 5 weeks, employee has a full day (8 hours) of RDO to take.
Scenario 2: Overtime TOIL
Employee works 2 hours overtime.
Instead of being paid overtime rates, 2 hours accrue to TOIL.
Employee takes 2 hours TOIL leave the following week.
Scenario 3: Flexitime arrangement
Employee can work between 7am-7pm within core hours.
Hours worked are tracked.
Excess hours bank to flexitime.
Deficit hours reduce flexitime balance.