{"id":83080,"date":"2023-06-21T12:47:40","date_gmt":"2023-06-21T12:47:40","guid":{"rendered":"https:\/\/domore.in\/oldworkplus\/?page_id=83080"},"modified":"2026-07-01T16:26:22","modified_gmt":"2026-07-01T16:26:22","slug":"comp","status":"publish","type":"page","link":"https:\/\/domore.in\/oldworkplus\/hr-glossary\/comp\/","title":{"rendered":"Comp Off"},"content":{"rendered":"\t\t
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What is Compensatory Off?<\/span><\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Compensatory off<\/strong> (comp off) is a day of paid leave given to an employee in exchange for working on a day they were entitled to rest, such as a public holiday, a weekend, or a day off they had already been approved for. The employee works an extra day and, in return, gets a future day off at an agreed time.<\/p>\n\n

It is a practical alternative to paying overtime. Many organisations prefer comp off because it manages workload spikes without inflating payroll costs while still being fair to employees. Understanding how comp off works, and how to manage it correctly, matters for HR professionals across the UAE.<\/p>\n\n

Comp Off vs Overtime Pay: What Is the Difference?<\/h2>\n

Both comp off and overtime address the same situation: an employee works beyond their normal hours or on a rest day. But they resolve it differently. Here is a direct comparison:<\/p>\n\n\n
Feature<\/th>Comp Off<\/th>Overtime Pay<\/th><\/tr><\/thead>\n
How the employee is compensated<\/strong><\/td>A paid day off at a future date<\/td>Additional cash payment in the same pay cycle<\/td><\/tr>\n
Cost to the employer<\/strong><\/td>No extra payroll cost. Productivity shifts to another day.<\/td>Direct payroll cost, typically 1.25x to 1.5x the normal hourly rate<\/td><\/tr>\n
Impact on cash flow<\/strong><\/td>None in the short term<\/td>Increases the current month’s payroll<\/td><\/tr>\n
Employee preference<\/strong><\/td>Preferred by employees who value rest and work-life balance<\/td>Preferred by employees who need or want extra income<\/td><\/tr>\n
UAE Labour Law<\/strong><\/td>Permitted as an alternative to overtime pay when both parties agree<\/td>Mandatory when work exceeds daily limits or is on official rest days without agreed comp off<\/td><\/tr>\n
HR administration<\/strong><\/td>Requires tracking comp off balances and expiry dates<\/td>Requires accurate time-tracking and payroll processing<\/td><\/tr>\n<\/tbody>\n<\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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What UAE Labour Law Says About Comp Off<\/h2>\n

The UAE Federal Decree Law No. 33 of 2021 governs working hours and rest entitlements. Article 25 is the core reference for overtime. It states that where an employee is required to work on their weekly rest day, the employer must either pay overtime at a rate of not less than 125% of regular pay, or grant an alternative rest day in lieu.<\/p>\n\n

The law sets the following limits for normal working hours:<\/p>\n