Time off in lieu
Time off in lieu is overtime taken as leave rather than as money. It accrues with a factor set in the collective agreement, often so that one overtime hour gives more than one hour of leave, and is taken later as compensatory leave.
Updated
- Category
Working time and pay
- Also known as
komptid · kompensationsledighet · ÖK
- Sources
Collective agreement, for the factor and the rules on taking it
Time off in lieu is popular because it gives both sides flexibility, but it is awkward to administer because it lives in two directions: it accrues on one occasion and is taken on another, often months later.
That means a balance has to be held per employee, and the balance has to be right both when leave is granted and at a year end if the agreement requires remaining time to be paid out.
In PAXml, accrued time off in lieu is booked as ÖK1 and leave taken as KOM.
How Timply handles it
In Timply the employee chooses between payment and time off in lieu as the overtime is recorded. Accrued time off is booked as ÖK1 and leave taken as the absence code KOM. The balance is calculated per employee, in hours and in that employee's own working days.
Related terms
Overtime
Overtime is working time beyond ordinary working time, meaning beyond the full-time measure. The Swedish Working Hours Act caps how much overtime may be taken in a year, while what it is paid is set by a collective agreement or an employment contract.
Additional hours
Additional hours are the time a part-time employee works beyond their schedule but up to the full-time measure. They differ from overtime, which is time beyond the full-time measure, and most Swedish collective agreements pay them at a lower rate.
Collective agreement
A collective agreement is a written agreement between an employers' organisation or employer and a trade union on pay and terms of employment. In practice it decides premium levels, overtime pay, the number of holiday days and departures from the Working Hours Act.
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