Compensatory Off (Comp Off)
Meaning & Definition
The Compensatory Off (Comp Off) program is a form of compensation for employees when they work during their regular weekly day off, public holiday or non-working days. Rather than receiving overtime compensation, employees may take comp-off time during another regular working day in accordance with operational requirements and company policy.
Important aspects of Compensatory Off
- Enough payment for the holiday and weekend work.
- Represents an enhancement of employee confidence and a healthy work-life balance.
- Offers flexibility for employers with respect to excess hours.
- Helps sustain business continuity during periods of peak activity.
- Will reduce an employer’s financial obligation related to overtime pay.
Legal Compliance / Policy / Regulation
Compensatory time off laws are established by individual states through their Shops and Establishments Acts.
For Employees working in the manufacturing companies, it may be applicable through the Factories Act of 1948.
Companies will have their own internal policies in relation to compensatory time off. Therefore, all compensatory time off should be accurately recorded in attendance & leave systems.
It should be noted that there is no federal compensatory time-off law; however, individual states and HR internal policies will determine the applicability of compensatory time off.
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