Search topics

Compensatory Time Off

What is Compensatory Time Off?

For those employees who work overtime, the organization pays them in the form of Compensatory Time Off, which means they get off from work instead of getting paid for the overtime. Thus, employees can get time off for vacations or holidays instead of getting overtime wages. Generally, Compensatory Time Off is given as Paid Time off (PTO) against the number of hours the employee has worked. So, the organization must have a specific way to record it, or else the company can get into the trouble of not giving PTO properly as these are the accrued hours.