Compensatory leave

What is compensatory leave?

Compensatory leave, commonly known as comp off, is a type of paid leave offered to employees who work beyond their stipulated hours, including on working days, holidays, and weekends.

Why is it essential to offer compensatory leave?

Offering compensatory leave offers several wellness benefits to your employees. The additional paid time off can help them strike a better work-life balance, so they have a period to rest, recover, and complete their personal responsibilities. Comp off can also be useful in keeping burnout and fatigue at bay, ultimately supporting better physical and mental health conditions. Additionally, it gives employees the flexibility to choose when to work and when to rest, which grants them better control over their work schedules. For organizations, compensatory leave ensures adequate staffing during peak workloads while allowing teams to take time off when demands are lower.

Who is eligible for compensatory leave?

Eligibility for compensatory leave depends entirely on the company's policies and state-specific labor laws. Salaried employees who work extra hours or on non-working hours are commonly eligible to receive compensatory leave. Hourly workers may have different eligibility criteria based on their contract terms. Many employees in government roles are also provided compensatory leave by law. However, it can vary across sectors and locations.

What is an example of compensatory leave?

Say an entire team is required to work over the weekend to prepare for a key product release. In this case, each team member will receive compensatory leave for the extra time worked. They can later use this time off within the validity period specified in the company’s policy.

What kind of proof is required to approve compensatory leave?

Employees may have to get their comp off request approved by their reporting manager and the HR team. While submitting the request, they may also be expected to submit their timesheet records or attendance logs as proof of working prolonged hours or on weekends.

Can employees take compensatory leave during their notice period?

The permission to take compensatory leave during the notice period entirely depends on the company's policy. Some organizations may not allow employees to take comp off to ensure that knowledge sharing and handover processes happen without any disruptions. Other organizations may still allow employees to take time off, even when they are involved in key projects.

What is the difference between compensatory leave and paid leave?

Paid leave is something that is offered to employees as part of their annual leave entitlement, which employees can take anytime over the year. On the other hand, compensatory leave is something employees earn by working extra hours or on weekends. Most company policies provide a time frame within which employees can use their compensatory leave.

What necessary details should be included in a compensatory leave policy?

Here are some of the key details that need to be included in your compensatory leave policy:

Purpose of the policy: Explains why compensatory leave is offered and its intent and scope
Eligibility criteria: Specifies which employees are entitled to earn and take compensatory leave
Approval process: Details how employees can apply for comp off, what supporting documents they're required to submit, and who is responsible for approving or rejecting their requests
Conditions: Describes the situations in which employees can earn compensatory leave, such as by working on weekends, holidays, and beyond regular working hours
Validity: Provides information on how long the compensatory leave is valid
Usage guidelines: Details how and when comp off can be taken, and if it can be combined with other leave types