I would like to tell you that, about the compensatory off companies has different policy which must be mentioned in their policy and authorized by management representative and some companies are includes the policy about compensatory off in their Standing Order.
Legally Employee must get a weekly off 7 days or company needs him on seventh day, he/she need to get that off within in next 3 days.
Hence you need to prepare a policy about compensatory off and get authorized by Labour Officer & Management.
It is similarly like paying double payment of the wages for working employees on any festival holiday. Last but not the least the wages should be calculated on Gross and not on basic.
If you are talking about workmen, services of them are governed strictly under Labour LAWS. According to provisions under Factories Act,weekly off if not given, then comensatory off is to be given 3 days before or 3 days later also from original offday. If it is C/Off for management staff, then such items with other groceries addressed as per companies' HR Policies. Different policies and no similarity found because they have internal and external factors like you have. I had experience in dealing this complex issue. The encashment of C/Off if allowed then it was observed that facility got gainfully misused by staff in concert . Secondly, the very encashment facilty allowed accumulation of C/ff as it allowed encashment any time during year and at times more than one employees were observed away from work . So instead of c/off giving a practical solution, it stemmed before us with other complex issues. So we decided that C/Off has to be in any case utilized in 4 weeks and if not availed by concerned gentlemen then it will lapse automatically .
Director-Future Instt of Management and Technology
Labour Law Adviser