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Compensatory off literally as well as legally refers to availing of leave or off by the employee on another day for having been required by the employer to work on a holiday. It can not be applied to the cases of over time work. Your educational institution will come under the purview of the Minimum Wages Act,1948. Section 14 of the MW Act,1948 provides for payment of over time wages as fixed under the Act or any other Act applicable to the establishment whichever is higher. For instance Rule 25 (1)(b) of the MW(Central)Rules,1950 mandates that the overtime rate shall be double the rate of normal wages. Therefore, the policy of your institution can not run counter to the provisions of the Act and Rules applicable to it.