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time in lieu

Time in lieu is an arrangement where employees receive paid time off instead of overtime pay. This option is available under certain awards and registered agreements.

Under a time in lieu arrangement, if an employee works beyond their usual hours, instead of receiving overtime pay they can take equivalent time off work at a later date. For example, if an employee works two extra hours, they can take two hours off at another time, paid as if they worked. This is often an agreement between the employer and the employee and is subject to the terms of their employment contract or award.

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