flat rate overtime v's time off in lieu

[8till8]

What are the pro's and con's of the paying an employee flat rate overtime (/hr) or giving time off in lieu instead? Situation is for employee who's normal 35hr week would go upto 40-42hrs every few weeks.

 

[Mpsox]

Big risk is that they accumulate a lot of time in lieu, don't take it and then ask for a lot of time off that you cannot give because it does not suit you operationally.

 

[Domo]

If you give them time off in lieu - it is not taxable income and therefore you avoid employer's PRSI on the gross income - a good saving

 

[8till8]

Accumulated time off is often tricky to give and employees often feel its got far less currency than money in their pocket but then there is the surcharge of ER prsi, am I correct is assuming its still 10.75%?
If employers want flexibility in work times, then isn't 11% a small cost on the added overtime if customers get satisfied? (assuming the overtime never becomes part of basic terms)