Compensatory Time-Off (Comp-Off)

Meaning & Definition 

Comp-Off, also known as Compensatory Time-Off, provides employees additional time-off instead of overtime pay when they work extra hours or holidays or weekly days off. It must be used according to the policies of the organisation and obeying labour laws of the company.

Why Compensatory Time-Off Matters?

• Promotes balance between family life and job responsibilities for employees that work additional hours.
• Enables businesses to effectively manage wages associated with overtime for their employees.
• Provides fair payment to employees for working during holidays and on a day when they would not ordinarily have to work.
• Allows transparency in tracking leave entitlement through the Human Resources Management System (HRMS).
• Enhances employee confidence and satisfaction with the company.

Applicable Regulations & Policies

• Factories Act 1948, provides for compensatory leave if an employee works on their normal day off.
• Shops and Establishments Acts, state specific; regulates compensatory off for retail or commercial type establishments.
• Leave and Attendance Policies define eligibility, validity and use of compensatory time off.

Applicability will vary between each state, the type of employee and also by type of commercial establishment.