Compensatory Off (Comp Off)
Last updated: 13 July 2026. General explainer, not legal or tax advice.
What compensatory off is
Compensatory off, or comp off, is a day off given in return for working on a weekly off, a declared holiday, or beyond normal hours. It is time back rather than extra pay. It exists so that an employee who gives up a rest day still gets the rest, just on a different date.
Comp off versus overtime
These are two ways to settle extra work. Overtime pays cash, at twice the ordinary wage rate for the extra hours. Comp off gives a substitute day of rest instead. Company policy decides which applies to a given situation, and sometimes both do, for example overtime pay for extra hours plus a comp off for working the weekly off.
The rules that apply
Most policies set a window within which the comp off must be taken, after which it may lapse, and they require the same approval as any leave. This keeps comp off from turning into an open ended balance and protects the point of it, which is timely rest.
Why it matters for rest and records
The weekly off exists for a reason, and comp off is how the law's intent is honoured when someone has to work it. Recording both the worked rest day and the comp off that balances it keeps the leave ledger and the muster roll consistent.
Comp off policy, what to spell out
Comp off works cleanly only if the policy answers three things, when it is earned, how long the employee has to take it, and whether it lapses if unused. Leaving any of these open turns comp off into a running argument, with employees carrying balances for months and managers unsure whether to honour them.
It also helps to say how comp off sits next to overtime, since both can arise from the same extra work. A line that explains when the employee gets a day back and when they get paid removes the most common source of confusion.
Worked example
An employee works on a Sunday, their weekly off, to meet a deadline. Instead of paying for the extra day, the company grants a compensatory off to be taken within the policy window, so the employee gets the rest day back later in the month.
Related terms
Frequently asked questions
What is compensatory off?
A day off granted in return for working on a weekly off, a holiday, or extra hours. It gives time back rather than cash.
Is comp off the same as overtime?
No. Overtime is extra pay for extra hours. Comp off is a substitute day of rest. Company policy decides which applies, and sometimes both do.
Does comp off expire?
Often yes. Many policies require the comp off to be taken within a set window, after which it may lapse. Check your company rule.
Is comp off paid?
Comp off is time, not cash. The employee takes a paid day of rest later instead of extra pay for the day worked.
Who approves comp off?
Usually the reporting manager, in the same way as any other leave, and within the window the policy sets.
What should a comp off policy spell out?
When comp off is earned, how long the employee has to take it, whether it lapses if unused, and how it sits alongside overtime.
Can an employee carry a comp off balance for months?
Only if the policy allows it. Most set a window within which comp off must be taken, after which it lapses, to keep it timely.
Sources and official references
The rules and figures on this page trace to the official sources below. Statutory amounts and dates change, so confirm the current number on the source before you act on it.
How Offrd helps
Offrd records work on off days and the comp off that balances it, so the leave ledger stays accurate.