Comp-off policy addendum template

This page is an illustrative addendum you may attach to a leave handbook after you fill every blank from your real rules. It is not legal advice, not a certified clause, and not a claim that this text is compliant for every Indian office, factory, or state. Extra-work, overtime, and rest rules can depend on employer policy, establishment type, applicable law, and employment terms. Factory and office contexts can differ. Do not treat this outline as permission to replace overtime pay with compensatory off. Pending SME review. This article remains a draft. Do not issue it unchanged.

Meaning — what extra work is, and the earn → approve → credit → use path — stays on compensatory off explained. The broader handbook skeleton stays on the leave policy template. Operational recording of credits and applications is described on Dayzen leave management. Configuration should follow the issued annex, not the reverse. There is no unpublished compensatory-off commercial URL on this site.

How to use this addendum

Copy the section headings into your annex. Replace italic-style placeholders with names, calendars, and clocks you actually run. Do not invent statutory quotes, section numbers, or a nationwide multiplier to look complete. If a binding extra-work rule applies to your establishment, take advice and write the outcome in your words after review. If a heading does not apply (for example you never pay cash), write “not offered” so managers stop inventing it.

Keep sandwich-leave mechanics out of this annex; they belong to the issued leave chapter and the sandwich guide. Keep ordinary earned-leave year-end out of the expiry section unless you truly pool those clocks and say so in one sentence.

1. Purpose

State that this addendum explains how extra work on a published rest occasion may earn later rest (compensatory off) and, if you offer it, how leftover credit is treated. Name the legal entities and locations covered. Name the owner of amendments and the effective date. State that attendance punches, outdoor marks, and regularisation are governed by the attendance policy, not duplicated here. State that this addendum is company policy language, not a restatement of a statute.

Say who this annex is for: employees in named populations. If factory and office staff are both employed, say whether they share this annex or whether factory extra-work is covered by a separate reviewed document. Do not collapse the two with a single casual sentence.

2. Eligibility

Who may earn and use compensatory-off credit: confirmed employees, probationers, trainees, part-time staff, if you include them. Who is out of scope: write “out of scope” in one line if contractors or a named site are excluded. Silence plus a few informal days off creates two classes of extra work with no ledger.

Who may be asked to work a rest day, what notice you try to give, and whether refusal has a consequence are employment-terms and applicable-law questions. Do not invent a legal compulsion sentence in this template. Leave a placeholder for the reviewer. Self-credit is forbidden: people who own the extra-work roster must not be the sole approver of their own rest.

3. Earning occasions

List the occasions that can earn credit, as your list. Typical office patterns — not a legal minimum on this page — include a published public or company holiday, a rostered weekly off, or another named non-working occasion when the person works with approval or under a standing extra-work roster. Working late inside a normal working day is usually not an earning occasion unless you separately named overtime or extra hours. Write the boundary so “stayed till 9 p.m.” does not mint rest.

Restricted holidays, optional working days, and work-from-home or outdoor marks on a rest day need yes-or-no sentences. Split sites: the calendar that applies is the person’s roster calendar, not the building they entered. Travel on a weekly off: extra work, on-duty attendance, or ordinary time — pick one. Half extra days: half credit, full credit, or nothing below a named hour threshold you will actually measure. Do not paste a nationwide hour rule from memory.

Earning requires a visible attendance outcome on an eligible day. Informal “I was in, trust me” is not an occasion.

4. Approval of extra work

Name who may request extra work, who may approve it, and whether HR only records after the fact. A punch on a holiday without pre-approval or a standing roster should not silently mint a credit. Approval should state the intended outcome: rest credit, cash, or hours only with no extra rest.

Write the path:

1. Request or roster before the occasion where practicable; name the exception path if operations cannot pre-approve.
2. Attendance shows the day worked against the same employee identity as leave.
3. Named approver confirms the outcome (rest, cash, or none).
4. Credit posts to the named bucket, or payroll receives the cash flag, not both for the same hours unless a documented split exists.

5. Credit unit and ledger

Pick one unit: full days, half-days, or hours. Most office policies credit one rest day for one eligible extra day; that is a pattern, not a law on this page. Do not claim a nationwide multiplier. Do not attribute an encashment multiplier to Dayzen. Granted or ad-hoc credit is still a ledger line employees can see — not a manual present day next month with no balance.

Name the bucket in the same product you use for other leave. Managers must not keep a side notebook. Configuration in leave management follows this unit once issued.

6. Use

Using credit means applying the named type on a working day through the same approval path as other leave, or a shorter path if you publish one. The attendance calendar should show approved compensatory rest, not casual leave, unless you deliberately convert types — conversion should be rare and named. Notice periods, blackout dates, and half-day use should be written here if they differ from ordinary leave.

Using credit is not regularisation and not a way to dodge intervening-day rules. Sandwich questions stay on the issued leave chapter.

7. Expiry

Write the clock: when it starts (extra-work date, credit-posting date, or a named milestone), how long unused rest remains usable, and how employees are told. Write what happens to applications already in queue if the manager acts after the date. In-service earned-leave carry-forward, lapse, and encashment are a different year-end conversation unless you have written a pooled rule. Do not leave expiry as “the system will handle it.” Do not name imaginary product jobs in the issued PDF.

8. Conversion (rest, cash, lapse)

State the leftover outcome: lapse with no payment, cash alternative, or a documented split. State when the choice is made: at extra-work approval, or only at expiry. Rates, tax treatment, and whether payment is allowed are not filled in this template. They are payroll-design and applicable-rule questions for your reviewer. Keep the record honest: rest used, or cash chosen, not both for the same extra occasion unless the split is written.

Do not write a sentence that factory overtime pay may be replaced by this leave credit. Do not quote factory legislation from memory. If factory populations are in scope, the reviewer fills a separate caveat or a separate annex.

9. Factory and office caveat

Office and services extra-work rest is often a company rule attached to the holiday calendar. Factory overtime and compensatory holiday rules can be a different legal context. This addendum does not quote the Factories Act and does not instruct any employer to substitute compensatory off for overtime pay. Recording a credit does not by itself satisfy every extra-work regime that might apply. Get shop-floor rules reviewed. Verify obligations on official materials and with counsel — do not paste numbers or sections into this skeleton to look finished.

10. Records, freeze, and misuse

For each pay period, list extra-work days still unapproved, credits not yet posted, use applications that overlap the period, and cash flags for payroll. Freeze those with other leave. After freeze, posting credit or converting cash is an exception path you name.

Misuse examples you will act on: self-credited rest, claiming rest without attendance, spending rest and also taking cash for the same hours. Informal extra Saturdays with no ledger are a policy failure, not employee creativity. Acknowledgement of this annex can ride with the parent leave-policy acknowledgement on each material revision.

---

Issue only the filled, reviewed version. Keep meaning on the explainer. Keep the parent handbook on the leave-policy template. Keep sandwich and EL year-end where they belong. Dayzen can record granted credits and applications; that does not make this annex law. This article remains a draft pending SME review. It is not legal advice.

When you train managers, walk one pre-approved holiday, one unapproved punch on a weekly off (should not silently credit), and one unused credit approaching expiry. If the system allows a cash-plus-rest double outcome the PDF forbids, freeze will follow the system. Reconcile codes to this annex on the effective date. A compensatory-off clause that cannot be applied in the leave product will be replaced by WhatsApp, and WhatsApp will not survive payroll close.