How Soon Should Employees Use Their Compensatory Off Before It Expires?

I need some support on the following point relating to Compensatory Off: Is there a period within which an employee needs to utilize his/her compensatory off? For example, if an employee works on, say, 19th January 2013 (a Saturday holiday), do they have to utilize that before a certain time period? If they do not utilize it during the said period, are they eligible to get paid for that day, or does it expire?

Regards,
Sunil Subbramaniyam

I can tell you about our organization. We generally provide compensatory offs until the completion of one month. This means if there is a leave on 15th March, then the employee applying for compensatory off can avail the same before 1st April (30 days); otherwise, it expires. It is to be noted that national holidays' compensatory offs are to be given at the earliest.

Thank you.

To the best of my knowledge, there's nothing "hard and fast" about when an employee can or needs to utilize Compensatory Time Off (CompOff). It all depends on the CompOff policy of the company.

I have observed companies where the CompOff validity ranges from "within 30 days" to "6 months." However, it also relies on the number of CompOffs the HR department in your company manages on a monthly basis. If it's an occasional occurrence, then a broader time frame for utilization can be permitted. If such situations are frequent, then a shorter window for utilization would be more practical, or else the concerned department or HR would have to keep track of a large number of CompOffs until they are used. In this case, perhaps it's time to establish a formal and clear CompOff policy.

Regarding your other query about being "eligible to get paid for that day," payments in lieu of CompOffs typically apply only to workers. For executives, companies usually require them to take the CompOff; otherwise, the CompOffs expire.

Best regards,

TS

As per the Factories Act, an employee availing compensatory time off (comp off) should take it within 10 days of working. For example, if he works from Monday to Saturday and continues on Sunday, then he is supposed to take the comp off on Thursday.

However, many of these regulations are not followed in the industry, as it depends on the practices within the specific firm. Compensatory time off usually expires and is not converted into monetary value.

Thanks,

Compensatory Off Usage Guidelines

The Factory Act and many Shop and Establishment Acts provide that compensatory off has to be taken 3 days before or after the weekly off when the employee has worked. No person is allowed to work for 10 days without a day off (6 weekdays and 3 for the compensatory off). There is no question of paying extra or lapsing. It is mandatory to use it within 3 days.

Many factories we work with have automated systems to prevent employees from signing in to work on the 3rd day.

For workers category employees, follow what Saswatabanerjee has advised; for executives, lay down your own company policy and apply it uniformly to all.

Just a point of view:

Compensatory Time Off Under the Factories Act

Under the Factories Act, everyone is considered a worker. Therefore, the rules on taking compensatory time off within three days will apply to officers and staff as well. The only exception is for those who are covered under the category of employees holding a confidential position under Section 64. Everyone else must follow the rules.

Dear Subbaram & others,

Factory Working and Compensatory Off Guidelines

Presuming that your query refers to factory working, the position is as follows:

1. Since you stated that you had worked on 19th Jan, a substituted weekly off has to be given on 20/21/22, or it could have been 16/17/18 without seeking any approval from the Factory Inspector.

2. Compensatory Holiday Requirements

As regards your query regarding Compensatory Holiday, as per Section 53(1), the compensatory holiday has to be provided within the next two months, i.e., up to March 2013. But this requires approval of the Chief Inspector of Factories as per Section 65 of the Factories Act 1948.

3. Compensation and Overtime Payment

As regards compensation, if you are giving a compensatory holiday, then no extra compensation is called for, including OT payment for the week starting from the 19th. However, in case you are unable to provide a compensatory holiday, then you have to pay OT for that week.

Hope the above clarifies.

Regards,
KK

As per government rules, compensatory time off (comp off) is to be availed within a month, provided you obtain written permission for the same.

Regards, Shashi