Compensatory Leave For Employees: Meaning And Sample Leave Application

If you want to get compensated for the overtime at work, compensatory leave is something you should know about. See how you can make use of this type of leave.

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Compensatory Leave For Employees: Meaning And Sample Leave Application

Who doesn't like to be compensated for putting in extra hours at work? Employers often acknowledge when their employees go that extra mile for their company by providing various perks and compensatory leave days. Also called a comp off, a compensatory leave is a leave granted as compensation for hours of overtime or for working on holidays. It is a paid time off, which means that compensatory leave allows employees to take time off from work without losing their regular pay.

In this article, we will understand the meaning of compensatory and see how you can apply for it.

Also Read: Understanding the different types of leaves

Compensatory Leave Meaning

Compensatory Leave is a type of leave given to an employee in lieu of the additional time they devote to professional work during busy periods. The employees are compensated with paid-off days instead of extra pay for extra work. The following are the compensatory leave benefits for both employees and employers:

Benefits of compensatory leave

Eligibility for Compensatory Leave

The compensatory leave policies greatly vary from company to company. While public companies have standard rules for their salaried employees with regard to compensatory leave or overtime policy, the rules of private companies may differ from public agencies. Some companies have set maximum hours per week that an employee is expected to devote to the company, and work done beyond that limit is compensated through compensatory leaves.

Hence, grant of compensatory leaves depends on the organization you work for. Generally, comp leaves are provided for the following reasons:

For working on public holidays or national holidays
For working on Sundays
For travel or tour purposes

How to apply for compensatory leave?

To apply for compensatory leave, the employee needs to write a formal compensatory leave application. However, before you do so, here are two points you must keep in mind.

1. Keep your compensatory leave balance updated

Compensatory leaves are not credited to your leaves account, unlike other leaves. Hence, you must keep an account for all the granted compensatory leaves as per your company policy. In case of any confusion, you may take up the issue with the human resources department of your office.

2. Talk to the concerned authority

Before you send your compensatory leave application, it is best to inform your manager in person as well. It will update them about your overtime compensatory leave status, your overtime hours, etc. You can also discuss any issue with regard to your compensatory time as well.

Also Read: What are Casual Leaves?

Compensatory Leave Letter Sample

[Recipient's Name] [Designation] [Company Name] [Company Address]

Dear [Recipient's Name],

I am writing to formally request compensatory leave for the additional hours I have worked at [Company/Organization Name] beyond my regular schedule.

Owing to the narrow project deadlines for some projects of our clients, I had to put in extra hours of work. I truly understand that these additional hours were necessary to ensure the completion of some crucial tasks and projects. In accordance with our company policy and labor laws, I kindly request that these extra hours be converted into compensatory leave.

Here are the details of the additional hours worked:

Date(s) of extra work: [Specify dates]

Total extra hours worked: [Specify total hours]

I understand that the timing of my compensatory leave may be subject to the needs of the department and I am willing to work with you to find suitable dates. I will ensure that my responsibilities are managed efficiently during my absence.

Thank you for considering my request for compensatory leave. I look forward to your positive response and further instructions regarding the scheduling of this leave. If you require any additional information or documentation to process my request, please do not hesitate to contact me.

Sincerely,

Your Name

FAQs Regarding Compensatory Leave

Q1. What is Compensatory Leave?

Compensatory leave is a type of paid time off granted to employees in lieu of overtime pay for extra hours worked beyond their regular schedule. It is typically offered as a benefit to employees to acknowledge and compensate for their additional efforts and time spent on work-related tasks.

Q2. How is Compensatory Leave Calculated?

The calculation of compensatory leave depends on the individual company policy and local labor laws. Generally, compensatory leave is calculated based on the number of extra hours worked beyond an employee's regular work hours. It is often calculated at a rate of 1.5 hours of compensatory leave for every hour worked beyond the regular work schedule. For example, if an employee works 10 extra hours, they may be entitled to 15 hours of compensatory leave. The specific formula and rules may vary, so it's essential to consult your company's policies and applicable labor laws for precise calculations.

Q3. When Can Compensatory Leave Be Taken?

Compensatory leave rules may vary based on company guidelines and work requirements. Typically, employees can request to use their compensatory leave when it is convenient for both them and the employer. However, the approval of compensatory leave requests may depend on factors such as workload, staffing, and operational needs. For this reason, employers often encourage employees to plan their compensatory leave in advance and coordinate with their supervisors to ensure that it does not disrupt workflow.

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Edited by

Shreeya Thakur

Sr. Associate Content Writer at Unstop

I am a biotechnologist-turned-content writer and try to add an element of science in my writings wherever possible. Apart from writing, I like to cook, read and travel.