A compensatory off, or "comp off" as it's commonly referred to, is a compensatory leave granted to an employee for having worked on a day or hours that are not part of his/her regular work schedule. This is often the case when an employee has worked overtime, on weekends, or on public holidays.
For example, if an employee works on a weekend which is a holiday for the company, the employer may give them a compensatory off on a weekday, ensuring that the employee still only works the same number of total days in that week.
Here are the common rules followed for compensatory off in Indian companies. Since leave policies are completely drafted by the company, it can vary from one to another.
Employees working on public holidays or their weekly days off are eligible to claim compensatory time off, either the next day or within a designated valid period. The same applies when an employee works genuinely over a weekend.
During business travel, if a weekly day off or public holiday coincides, the employee is granted a half-day compensatory off. However, travel time does not count as working time. The compensatory off is only applicable to the time spent on client meetings or at work sites.
Regarding legality, under Indian labor law, it's unlawful to require employees to work for seven consecutive days without a day off. The Factory Act mandates a 48-hour work week with at least one or two days off. If an employee works over this limit, they're entitled to receive overtime payment at double the regular rate.
It is important that you and your manager along with the HR team are informed about working extra hours/days and taking compensatory off later.
As HRs, it is necessary to set a procedure for employees to apply and take compensatory leave.
Some companies also keep a cap on the period within which you have to use compensatory days off. For example, a leave policy can state that employees should use the comp off provided within one year.
Here is a simple compensatory leave policy that you can include in your leave policy. Edit the details as per your company needs and use it.
The purpose of this policy is to outline the rules and regulations concerning compensatory leave for employees of [Company Name], located in India. This policy aims to ensure that employees are fairly compensated for working outside of their standard working hours and during holidays.
This policy applies to all full-time and part-time employees of [Company Name] who are based in India. Contractual and freelance employees are not eligible for compensatory leave as per this policy.
Accumulation and utilization
It is a type of leave given to employees to compensate an employee for having worked on a day or hours that are not part of his/her regular work schedule.
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