Time off in Lieu - New Rules

19 March 2017

A surprise decision by the Fair Work Commission now requires employers to calculate time off in lieu (TOIL) at a rate of 1.5 hours for each hour of overtime worked for employees being paid at the Award rates.

The ACA wishes to advise that in December 2016 the Fair Work Commission handed down a surprise decision, advising that time off in lieu (TOIL) is now to be accumulated at the rate of 1.5 hours for each hour of overtime worked.

It should be noted that Awards other than the Architects Award 2010 were included in this Award variation, and it is a change to the previous custom and practice as detailed in the current Architects Award.

We were particularly surprised at this decision, of which we were made aware only recently, as the ACA is currently before the Fair Work Commission with an Award review at which this very matter is to be determined. The date of the hearing is yet to be advised.

Our submission on 30 June 2016, which followed an earlier Exposure Draft, confirmed our long-standing position of TOIL for time worked, except when paid out after 6 months accrual, when it becomes 1.5 hours TOIL for each hour of overtime worked.

The ACA will keep you advised of further developments, however, in the meantime, it is a requirement for payments to be made at a rate of 1.5 hours TOIL for each hour of overtime worked.

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