Leave · Glossary

Compensatory Off (Comp Off)

Also called: comp off, compensatory leave, C-off, compensatory holiday

Definition

Compensatory off is a paid day off granted to an employee who worked on a weekly off or a declared holiday, in lieu of that lost rest day. The Factories Act requires compensatory holidays when a worker is deprived of the weekly holiday, to be given within the same month or the two months following. Comp off is distinct from overtime pay, which compensates extra hours with money rather than time.

When comp off is earned

The usual trigger is a full day worked on a weekly off or a paid holiday, for example a technician called in on Sunday for a client shutdown, or a guard covering a colleague on Republic Day. Some policies also grant a half-day comp off for a substantial part-day, and a few grant it for working well beyond shift hours on a normal day, though that is closer to overtime and should be treated as such for statutory purposes.

Under the Factories Act, a worker deprived of the weekly holiday must be allowed compensatory holidays of equal number within the month in which the holidays were due or within the two months immediately following. Shops and Establishments Acts have comparable provisions that vary by state.

Comp off versus overtime pay

Comp off restores rest; overtime pay compensates hours. For a worker covered by the Factories Act or the Code on Wages, hours beyond the daily or weekly limit must be paid at twice the normal rate, and a comp off does not replace that payment. Working a full shift on a weekly off within the 48-hour weekly limit may be compensated by a comp off; working beyond the weekly limit triggers overtime pay regardless.

For salaried staff outside those statutory hour limits, comp off is a matter of company policy and is the common approach for weekend work.

  • Weekly off worked, within 48 hours in the week: comp off is the standard remedy
  • Hours beyond 9 a day or 48 a week: overtime at twice the rate is due
  • Comp off must be granted, not merely credited, within the statutory window
  • Record the date worked, the approval and the date the comp off was taken

Policy points that avoid disputes

Define the minimum hours needed to earn a full or half comp off, the validity period (many companies use 30 to 90 days, but the Factories Act window is the month plus two months for factory workers), whether comp off can be encashed or lapses, whether it needs prior approval before the extra day is worked, and how it appears on the attendance record. Unlimited accumulation of comp off is the most common problem in field teams and ends in a large unpaid liability or a mass leave request.

A Sunday shutdown and its comp off

A maintenance electrician on a ₹24,000 monthly wage works a full 8-hour day on Sunday 6 September for a plant shutdown, in a week where his total hours stay at 48. He earns one comp off, which he must be allowed to take by 30 November under the Factories Act window; he takes it on Friday 25 September as a paid day. Had the shutdown pushed his weekly hours to 56, the 8 extra hours would additionally be paid as overtime at 2 × (₹24,000 ÷ 26 ÷ 8) = ₹230.77 per hour, or ₹1,846.

How Attend Mitra handles this

Attend Mitra can hold comp off as a leave type with a balance that is credited on approval after a day worked on a weekly off or holiday, and the roster builder warns when someone with approved leave is scheduled, so a comp off booked for a day is not silently overwritten by a shift.

Frequently asked questions

What is comp off in HR?
Compensatory off is a paid rest day given to an employee who worked on their weekly off or a declared holiday. It compensates the lost rest day with time off rather than money, and for factory workers the Factories Act requires it to be granted within the month or the following two months.
Is comp off mandatory in India?
For workers covered by the Factories Act, yes: a worker deprived of a weekly holiday must receive compensatory holidays within a defined window. Shops and Establishments Acts have similar rules that vary by state. For other employees it is governed by company policy and the employment contract.
Can comp off be given instead of overtime pay?
Not where statutory overtime is due. Hours beyond the daily or weekly limit must be paid at twice the normal rate under the Factories Act and the Code on Wages. Comp off can compensate a weekly off worked within normal weekly hours, but it does not replace overtime wages.
How long is comp off valid?
Company policies commonly allow 30 to 90 days. For factory workers the Factories Act requires the compensatory holiday within the month the weekly holiday was due or the two months after. Whatever the window, it must be stated in the policy and tracked.

Related terms

Weekly Off
Weekly off is the one day of rest in every seven that Indian labour law guarantees to workers. The Factories Act (s.52) and state Shops and Establishments Acts require it, allow substitution within limits, and prohibit more than ten consecutive working days without a rest day. Whether the day is paid depends on the wage basis: it is built into monthly salary and excluded from daily-rate wages.
Overtime (OT)
Overtime is work performed beyond the legal daily or weekly limit of working hours, which in India is generally 9 hours a day or 48 hours a week. Overtime must be paid at not less than twice the ordinary rate of wages under the Factories Act and the Code on Wages. The hourly rate is usually derived by dividing the monthly wage by 26 days and then by 8 hours.
Earned Leave (EL / Privilege Leave)
Earned leave is paid leave an employee accrues in proportion to days worked, meant for planned time off. Under the Factories Act adults earn one day for every 20 days worked after completing 240 days in a calendar year, with carry-forward up to 30 days. Shops and Establishments Acts set their own EL entitlements, commonly 12 to 18 days a year, and EL is the leave type most often encashed.
Loss of Pay (LOP)
Loss of pay is the salary deduction for days an employee was absent without paid leave to cover them. Payroll counts LOP days from the attendance and leave records and deducts one day's pay for each, using the company's divisor (26 or calendar days). LOP reduces gross, and therefore EPF, ESI and other proportional deductions for the month, and is shown as a separate line on the payslip.
Shift Swap
A shift swap is an employee-initiated exchange of rostered shifts between two colleagues, approved by a supervisor before it takes effect. It lets staff handle personal commitments without leaving a post uncovered. A valid swap keeps the same skill level on the post, does not push either person over legal hours limits, and does not double-book anyone.
Casual Leave (CL)
Casual leave is short-notice paid leave for unforeseen personal matters such as a family emergency, a government appointment or a sudden household need. Entitlements are set by state Shops and Establishments Acts and company policy, commonly up to 12 days a year, and CL is usually granted for one to three days at a time, does not carry forward, and is not encashable.

Go deeper

See how this works inside Attend Mitra

Verified attendance, shift rosters, leave, and payroll-ready reports in one platform built for Indian teams.

Browse all terms