How Does Compensatory Off Affect Your Earned Leave? Let's Discuss Company Policies

Compensatory Off and Earned Leave Calculation

Hi, thank you for your inquiry. In most cases, Compensatory Off can be considered as physical presence when calculating Earned Leave. However, it's essential to check your company's policies or consult with HR to ensure that this practice aligns with the organization's guidelines. Each company may have specific rules regarding the utilization of Compensatory Off in relation to Leave calculations.

If you need further clarification or assistance, please feel free to reach out.

Regards,

In my view, you can include the days on which you availed compensatory off for working on a holiday for the purpose of computing earned leave.

B. Saikumar
HR & Labour Law Advisor

In my view, you can include the days on which you were on compensatory leave, availed by you for working on a holiday, for the purpose of computing earned leave. - B. Saikumar

If you are counting the original weekly off as present when you worked, then the compensatory off should not be counted in the number of days worked. However, if that day was being counted as the weekly off, then the day you are absent for the weekly off will be counted as working.

Compensatory Off and Physical Presence

Not at all. Nobody who is granted compensatory time off will be considered as physically present on that day for any purpose. However, they will be considered as physically present on a declared REST DAY or a HOLIDAY specified under relevant rules and circulars issued by the concerned establishment.

For example, an employee who works on a Sunday will be marked as present on that Sunday or Holiday, but not on the weekdays for which they were given compensatory Rest. If the employee is denied Rest in that week, the Rest should be carried forward for a maximum of 2 calendar months, within which they must be allowed to take the compensatory rest, or they will be entitled to payment at the rate specified in the PW Act, i.e., double the normal salary/wage rate.

Regards,
AK Jain

Compensatory Off and Earned Leave Calculation

The issue is whether the day on which a workman is granted compensatory off shall be counted as a day of actual service for the purpose of computing earned leave/annual leave. The law is well settled on the issue of whether Sundays/holidays on which a workman is paid shall be considered as days on which he is deemed to have actually worked. In Workmen of American Express International Banking Corporation V Management 1985 II LLJ page 539 (Supreme Court), it was held that Sundays and holidays on which a workman is paid shall be considered as days on which a workman is deemed to have actually worked and thus shall be included in computing continuous service within the meaning of Sec.25-B of the Industrial Disputes Act 1947.

Now, the concept of compensatory off arose out of the need to compensate for the day of rest, whether in the form of a paid weekly off or paid holiday permitted to a workman on which he is called up to work by the management. Thus, a compensatory off is a substituted weekly off or holiday. It being so, when the paid weekly off or paid holiday is deemed to be construed as days on which he is deemed to have actually worked, then the substituted weekly off or holiday can have the same attribute under the law. Therefore, the workman, in my view, cannot be denied the benefit of being treated as on duty on a day of compensatory off to which he would have been entitled on a weekly off or holiday, even if he had not been called to work and was enjoying his rest. The law itself grants this fictional service.

Not only this, I have not come across any statutory provision that expressly excludes weekly offs or holidays or compensatory offs from being counted for the purpose of computing earned leave. On the other hand, the explanation to Sec.79 of the Factories Act 1948 clearly and unambiguously excluded only the days on which a factory worker enjoyed leave for computing annual leave, and it nowhere excluded a weekly off or holidays or the compensatory offs that are paid. We cannot exclude what is not excluded by the statute.

Compensatory Off and Earned Leave

Compensatory off can only be provided when an employee works on a week off or a paid holiday in the organization. Secondly, the matter of earned leave is different.

Thanks & Regards,
Sumit