Based on the compensatory off policy of the company where I am working, I can shed some light so that you can devise your own policy suitable for your company.
What is a Compensatory Off?
A compensatory off is nothing but an "off" in lieu of his/her working on a weekly off day or on a holiday declared by the company. The weekly off can differ; it is not necessary that it should always be Sunday. If a person, after working for six days, instead of availing the off day, attends duty on the seventh day, then he is entitled to a compensatory off day. Some employees accumulate such compensatory off days and avail them at a stretch—this is often seen in employees who are coming from another state/district.
Eligibility Criteria for Compensatory Off
In our case, an employee must attend Sunday or another weekly off day and work for a minimum of seven hours to be entitled to a compensatory off. They cannot claim any other expenses like food or conveyance. The concerned employee needs to avail such compensatory off (comp. off or c/off) within two months; otherwise, it will lapse.
Exceptions for Factory Workers
An exception is given to factory workers from Odisha, Assam, or Bihar/Jharkhand, where they are allowed to accumulate compensatory offs and avail them when they go to their native place once a year. This practice helps them receive their full salary.