Skip to main content
Zamcalc Explainer

Overtime vs Time Off in Lieu in Zambia - Your Rights Under the Employment Code

Zamcalc Editorial May 2, 2026 3 min read
Employment Labour Law Payroll Overtime

Some employers offer time off in lieu (TOIL) instead of cash payment for overtime worked. But can your employer force this arrangement? This guide explains your rights and helps you decide which option works best for your situation.

What Is Time Off in Lieu (TOIL)?

Time off in lieu means receiving paid time off instead of cash payment for overtime hours worked. The time off is calculated at the same multiplier as the overtime rate - so you receive more time off than the hours you actually worked.

When TOIL Is Permitted

Under the Employment Code Act No. 3 of 2019, compensatory time off in lieu of overtime payment is permitted only when mutually agreed between the employer and employee. Neither party can impose it unilaterally.

How TOIL Is Calculated

TOIL follows the same multipliers as overtime cash payments:

Overtime Type

Cash Rate

TOIL Equivalent

Ordinary day (Mon-Sat)

1.5x hourly rate

1.5 hours off per 1 hour worked

Rest day (Sunday)

2x hourly rate

2 hours off per 1 hour worked

Public holiday

2x hourly rate

2 hours off per 1 hour worked

For example, if you work 8 hours of overtime on a rest day, you would be entitled to 16 hours (2 full working days) of paid time off.

Can Your Employer Force TOIL Instead of Payment?

No. The Employment Code Act requires mutual agreement. Your employer cannot unilaterally decide to give you time off instead of paying overtime. If you prefer cash payment, you have the right to insist on it.

Practical Considerations

When Cash Is Better

  • You need the income to cover monthly expenses

  • You are uncertain whether you will actually get to take the time off

  • Your employer has a history of not honouring TOIL agreements

When TOIL Is Better

  • You value time off more than additional income

  • You are in a higher PAYE bracket and overtime cash would be heavily taxed

  • You have upcoming personal commitments that require time away from work

What to Do If Your Employer Refuses to Pay Overtime or Offer TOIL

If your employer neither pays overtime nor offers compensatory time off, you can:

  1. Raise the matter in writing with your employer or HR department

  2. Contact your trade union representative (if applicable)

  3. File a complaint with the Labour Commissioner at the Ministry of Labour and Social Security

The Labour Commissioner has the power to investigate and order compliance with the Employment Code Act.


Calculate your exact overtime entitlement with our overtime calculator. Planning leave? Try the leave days calculator.

Frequently asked questions

Can my employer force time off instead of overtime pay in Zambia?

No. Under the Employment Code Act, compensatory time off in lieu of overtime payment requires mutual agreement between employer and employee. Your employer cannot unilaterally decide to give you time off instead of paying overtime.

How long do I have to use my time off in lieu?

The Employment Code Act does not specify an expiry period for time off in lieu. However, it is good practice to agree on a timeframe with your employer when accepting TOIL. If TOIL is not taken within a reasonable period, you may have grounds to request cash payment instead.

Sources

Try our Overtime calculator

Share

Get Zamcalc updates delivered to your inbox.

Free newsletter. No spam, unsubscribe anytime.

Related Tools