Overtime Overload: Can Extra Hours Be Turned into Compensatory Leave or Cash?

If overtime hours are more than 8 hours, can we consider it as compensatory leave? Can we encash this?

If overtime hours exceed 8 hours, can we consider it as compensatory leave or can we encash it? Are these OT hours accumulated over a certain period or are they at a stretch? Whether to encash or provide compensation will be a management decision.

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Mode of payment depends upon management, either encashment or compensation. In my opinion, if overtime is for physical work, then it should be compensated through encashment only. The main question that arises here is whether this practice violates the provisions of overtime working hours in labor laws.

Compensation is represented in the form of C-Off in the above message.

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