Flexi leave is time off taken from credit hours an employee has already worked under a flexitime scheme. Work longer than your contracted hours in one week, bank the surplus, and take it later as a half-day or a full day off.

The term is standard in the UK, Ireland, Australia and much of Europe, and far less common in North America — where the same idea appears as flex time and runs into a legal wall covered below. 

However, it is close to Flexible Time Off (FTO).

Three things the term is used for

• Flexitime credit leave — the main meaning: time off drawn from banked hours. Also called a flexi day or flex day.
• A discretionary leave pool — in parts of Asia, “flexi leave” sometimes means a block of days employees can use for any purpose, closer to a US floating holiday than to banked time.
• Loose shorthand for flexible working — which is a different thing entirely, and worth keeping separate.

The rest of this entry covers the first meaning.

See also: What is a Flexible Schedule and How Can It Benefit Your Team?

How a flexitime scheme works

Four components, and most schemes have all of them:

Bandwidth — the window during which hours can be worked and counted, often 7:30am to 7:00pm.

Core hours — periods when everyone must be present, usually mid-morning to mid-afternoon. Some schemes drop core hours and rely on coverage rules instead.

Settlement period — the accounting cycle, commonly a calendar month, at the end of which hours are reconciled against contracted hours.

Credit and debit limits — a cap on the surplus that carries to the next period, and a cap on how far an employee can run behind. A typical policy allows around 15 hours of credit to carry forward, caps debit at about 10 hours, and permits up to two flexi days or four half-days per month. Part-time staff get all four limits prorated.

Flexi leave is repaid work, not granted entitlement

This is the distinction that drives everything else, and it’s where flexi leave diverges sharply from vacation.

Annual leave is an entitlement granted for being employed. Flexi credit is hours the employee has already worked, being repaid as time. That has three consequences:

• It usually expires. Credit above the cap at the end of a settlement period is typically lost. Nobody does that with vacation
• It’s usually not paid out on exit. Most schemes require balances cleared before departure and pay nothing for leftover credit
• It shouldn’t be deducted from the leave balance. Flexi leave and annual leave are separate ledgers, and a policy that confuses them charges employees twice

Expiry only works cleanly for salaried staff whose hours are averaged across the period. For hourly or non-exempt employees, hours worked are hours that must be paid — you cannot expire them.

The North American problem

In the US, a flexitime scheme that banks hours across weeks collides with the Fair Labor Standards Act.

For non-exempt employees, overtime is calculated per workweek and must be paid in cash in the period it was earned. Hours worked above 40 in one week cannot be carried into the next as time off. Only public agencies may offer comp time in lieu, within limits.

What is permitted is flexing inside a single workweek — shifting hours between days so the week never exceeds 40. That’s the US version of flexi leave, and the workweek boundary is hard.

For exempt employees the FLSA doesn’t regulate hours, so a flexi scheme is a matter of policy — though building it as an explicit hours-in, hours-out ledger can weaken an exemption argument.

Canada offers a middle path. Several provinces permit averaging agreements: in Ontario, employer and employee may agree in writing to average hours over two, three or four weeks for overtime purposes, with a defined start and expiry date, generally lasting no more than two years. That makes a genuine multi-week flexitime scheme workable in a way it isn’t south of the border.

Flexi leave is not the right to request flexible working

Easily conflated, legally distinct. In the UK, employees have a statutory right to request flexible working — since 6 April 2024 a day-one right, allowing two requests in any 12-month period, with the employer required to consult before refusing and to decide within two months.

That right concerns a permanent change to how and when you work. Flexi leave is a day off drawn from banked hours. An employee can have one without the other.

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This entry is general information, not legal advice. Hours-of-work and overtime rules vary by US state, Canadian province and applicable award.