HR Terminology

Compensatory Off

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  7. Compensatory Off: Meaning and Benefits

Compensatory Off or “Comp Off” refers to a compensatory time off granted to an employee for extra/additional hours worked beyond their regular working hours.

In many organisations, employees may be entitled to receive compensatory time off instead of overtime pay for the extra hours they put in, especially if they are exempt from overtime regulations or if the company has a policy supporting compensatory time.

It is important for both employees and employers to be aware of and adhere to the organisation’s policies regarding compensatory time off. Some organisations may have specific rules regarding when comp off can be taken, expiration dates on accrued time, and limitations on how much comp off can be accumulated.

FAQ

While overtime pay compensates employees monetarily for extra hours worked, Comp Off compensates them with additional time off. The choice between the two often depends on company policies and labour laws.

Eligibility for Comp Off varies depending on company policies, employment contracts, and labour regulations. Generally, it is more common for full-time employees, especially those who are not exempt from overtime regulations.

The calculation of Comp Off typically depends on the number of extra hours worked beyond regular working hours or on holidays. Companies may have specific formulas or guidelines for determining Comp Off entitlement.

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