Is It Fair to Use Comp-Off Before Casual and Annual Leaves? Seeking Legal Insights

Leave Policy and Compensatory Off Usage

I need help regarding leaves used by employees as per the new company policy. Since October 26, 2016, employees working extended hours should first utilize their compensatory off (comp off) leaves. Comp offs are granted to employees to compensate and enable them to have rest days for the extended working hours they had to perform to fulfill project dependencies. Employees should, therefore, utilize their comp off balance as a priority and then use Casual and Annual leave accordingly for the year.

So, is it valid to take comp-off first and then use casual and annual leaves? Is there any law governing this policy?

Understanding Leave Entitlements and Legal Priorities

Legally, there are two parts we need to focus on:

1) What are the leaves that one is entitled to under labor laws?
2) What are the leaves that one is entitled to under contract or agreed terms of service other than (1)?

Generally speaking, Comp Off is a variant of leave that originates from overtime work or work on leave days. It has legal support, with its priority being mandatory, like section 53 of the Factories Act.

Then there are Annual Leaves, such as those outlined in section 78 of the Factories Act. They are also legally supported. However, the intention of the legislation is to first allow Comp Off, then Annual wages.

There is no legal backing for casual leaves; legally, they are considered annual leaves. Therefore, their priority is less because they derive their power from service conditions and not labor law. Hence, their priority is the least.

It is at the discretion of the employee. However, compensatory time off is required to be taken within a specified period, generally one month.