India's Largest HR Virtual Summit
23rd July, 2026 Register for FREE

Compensatory Off Policy

Published: Jan 13, 2024 |
Last modified: Jan 15, 2026

Compensatory off also known as Comp off, is a type of leave granted by an employer when an employee works on a holiday or for an extra working hour over and above their normal working shift. An employee can work on Sunday or any other non-working day and get compensated for it in the form of leave. Compensatory off leave is provided to reward the employee for the extra effort they put in, for the organization’s growth. It motivates employees to maximize their efforts and even enjoy their personal time whenever needed

Comp off leave policy sample

Purpose

The purpose of this policy is to establish clear guidelines for recognizing and compensating employees who work beyond their regular schedules or on designated holidays. The aim is to ensure that their commitment and contribution to work are fairly acknowledged. 

Scope

This policy applies to all regular, full-time, and part-time employees of [Company Name] 

Eligibility Criteria

Any employee who works on a day off, holidays, or extra hours beyond their regular shift is eligible for availing comp off. Accrued comp offs are reflected in the employee’s existing leave balance. 

Accrual and Calculation

 The method to compute the accrual is based on the number of extra hours worked beyond the regular work hours. A simplified formula for this calculation is as follows: 

Comp off accrual = (Number of extra hours worked/Total regular working hours in a day) × Accrual rate 

For example, if an employee works for 4 extra hours beyond their regular shift of 8 hours, and the accrual rate is 1.5 

The comp off leave accrual will be 4/8 × 1.5 = 0.75 

The standard accrual rate for comp off leaves at [Company Name] is [Rate]. 

Request and Approval Process

  • A formal request must be submitted by employees seeking compensatory off to their immediate supervisor. 
  • The request should include details such as the reason for the request, the date and duration of the extra hours worked, and the preferred dates for utilizing the compensatory time off. 
  • It is advisable to request leave well in advance to allow for proper planning. 
  • Post request the supervisors will be responsible for reviewing compensatory off leave requests promptly. 
  • If the request is approved, the supervisor will communicate the approval to the employee and ensure that both parties are in agreement on the dates for utilizing the compensatory time off.

Record Keeping and Documentation

 The supervisor will be responsible for documenting the approved compensatory off leave requests, which should then be sent to the Human Resources Department for record-keeping. To ensure transparency and compliance, accurate records of the compensatory time off accrued, approvals, and utilization must be maintained.  

Communication to the Employees

 The communication to employees regarding the compensatory off policy is designed to ensure a clear and comprehensive understanding of the policy guidelines. This will include: 

  • Utilizing the company portal to provide a detailed overview of the policy. 
  • Sending initial and periodic emails to employees. 
  • Integrating the policy into the updated Employee Handbook. 
  • Incorporating a specific module on the Compensatory Off Policy during employee orientation and training sessions. 

 Our Compensatory Off Policy ensures a balanced work environment by compensating dedicated employees. The policy guidelines are available on the portal and employee handbook. We communicate updates through emails and posters to ensure cooperation and understanding. Our success depends on open communication and following procedures, which fosters a culture of work-life balance. We appreciate our employees’ commitment to making this policy an integral part of our workplace. 

Thank you 

[Your Company Name] 

Human Resources Department 

We use cookies to ensure you get the best experience. Check our "cookie policy