Can We Set Our Own Rules for Compensatory Time Off in a Private IT Company?

We are a private limited IT services company.

Compensatory Time Off Policy

Regarding compensatory time off, currently, we have a policy where if an employee works on a holiday for 4 hours or 8 hours, they can avail of 0.5 (half) or 1 day off respectively. We have also stated that it can be taken anytime during the year (Jan-Dec).

Timeframe for Using Compensatory Time Off

I wanted to know if there is a rule specifying the timeframe within which the compensatory time off needs to be used. I would like to implement a rule where employees must utilize it within 3 months, or it will expire. Can I enforce this policy?

Limitations on Compensatory Time Off

Additionally, can the time off be taken all at once, or can we set a limit on the number of compensatory days they can take at a time, perhaps only allowing 2 at a time?

Company Policy Autonomy

Since we are a private limited company, are we allowed to establish our own rules regarding the above?

Hi, the time limit for availing compensatory time off will vary from company to company. There is no statutory time frame. Many companies provide a sufficient time frame, such as the end of the financial year or calendar year (depending on the industry). If employees are unable to avail of compensatory time off due to project work, companies will typically offer a reasonable time frame. Even a three-month time frame is acceptable, provided it is feasible for employees to take compensatory time off.

Hi, yes, if you are working on your scheduled weekly off, you must avail of compensatory time off within three days after your scheduled weekly day off. For example, if your day off is on Sunday, then you need to take your compensatory time off on or before Wednesday.

Secondly, if you have worked on a factory holiday, you can take compensatory time off within the month, depending on the company's policy, but not exceeding three months.

Regards,
Rajvir