Compensatory leave (or compensatory time off) refers to leave granted to make up for hours of work that have been performed outside the regular schedule (holidays, weekends, overtime, etc.).
How to Calculate Compensatory Leave?
To calculate the compensatory leave depends on the number of hours worked outside normal working hours. To determine the exact number of hours, an employer can refer to their time management software.
Hourly employees typically do not benefit from compensatory leave and are instead paid for their overtime according to the legislation in place.
Can Compensatory Time Off Be Paid?
Compensatory time off typically replaces paid overtime. They are therefore not paid at the same rate.
Is There a Compensatory Leave Law?
There isn’t a law that specifically concerns compensatory leave. Rather, the terms of compensatory time off are set out in the employment contract between an employee and an employer.
What Is the Difference Between Compensatory Time Off and Overtime?
Compensatory leave refers to a paid leave which benefits an employee who has worked more hours than what is provided for in their employment contract. An employee is typically entitled to compensatory time off when their contract does not provide for overtime pay.
Overtime refers to working time that exceeds the maximum number of hours per week or day provided for by the legislation in place.