Vendion
    Staff & Scheduling

    Compensatory Time Off (Comp Time)

    4 min read#16

    Comp time is overtime hours saved in a time bank instead of being paid out in salary. The employee can then take the hours as time off. It's a popular solution in restaurants where peak periods (Christmas, summer, events) generate lots of overtime that can be balanced against quieter times.


    Legal basis and guidelines:

    Comp time is governed by collective agreement (Visita-HRF in Sweden) or individual employment contract, not by law. Common principles:

    • Voluntary – employer and employee must agree
    • Cap per employee – often 40–80 hours max in the bank
    • Expiration – comp time not taken within a certain time (typically 12 months) is paid out as salary
    • At end of employment – remaining comp time must be paid out in cash

    Vendion supports both models: with or without cap, with or without expiration.


    Relationship to OB and overtime:

    An important distinction here:

    ConceptWhat it isWhere it shows
    Overtime hoursWork over 40 h/weekTime report, payroll data
    OB supplementCompensation for evenings, weekends, holidaysPayroll data (SEK)
    Comp timeSaved overtime hours taken as time offComp time tab

    Can you get both OB and comp time for the same hours? Yes – OB supplement is paid as cash, while the time itself is saved as comp time. Example: 3 h overtime Saturday evening → 3 h into the time bank + OB2 supplement (typically 50%) paid in salary.

    Can you get both overtime pay and comp time? No – you choose one. Either overtime hours are paid in cash with overtime supplement (often 50%), or saved as comp time (1:1 or 1:1.5 depending on agreement).


    Manage comp time in Vendion:

    View balance:

    1. Go to the employee's detail page
    2. Click the Comp time tab
    3. You see:
      • Current balance (hours left to take)
      • Earned this year
      • Taken this year
      • Paid out this year
      • History – list of all transactions

    Transaction types:

    TypeSourceEffect
    EarnedApproved overtime (manually or automatically)Increases balance
    TakenApproved time off deducted from comp timeDecreases balance
    Paid outConverted to cash salaryDecreases balance, added to next payroll
    ExpiredForfeited (exceeds expiration time)Disappears without compensation (if policy allows)

    Add comp time manually:

    1. Open the comp time tab
    2. Click Add transaction
    3. Choose type, enter hours, date and note
    4. Save

    Automatic earning: If enabled in settings, approved overtime (> 40 h/w) is automatically converted to comp time instead of overtime pay.


    Take comp time (employee):

    The employee applies for comp time off via the staff portal:

    1. Go to Absence in the portal
    2. Click New absence request
    3. Choose type: Comp time
    4. Choose dates and scope
    5. The system checks that the balance is sufficient
    6. Submit request

    The manager approves as a regular absence request. Approved time off automatically deducts from balance.


    Payout of comp time:

    Voluntary payout:

    • Employee can request all or part of the balance to be paid in cash
    • Manager approves in comp time tab: Pay out
    • Amount added to next payroll
    • Hourly rate × number of hours (without OB, since OB is already paid)

    Mandatory payout at end of employment:

    • When an employee leaves, remaining comp time is automatically paid out
    • Happens in the final payroll
    • Note in comp time tab: "Final payout"

    Payout at expiration:

    • If you set an expiration time (e.g. 12 months), the system warns 30 days before expiration
    • You can choose to pay out or let expiration occur

    Comp time settings:

    Go to Staff → Settings → Comp time:

    SettingOptionsDefault
    Enable comp timeOn/offOff
    Conversion factor1:1, 1:1.5, 1:21:1
    Max balance per personNo limit / 40 / 80 / 120 hNo limit
    Expiration timeNone / 6 mo / 12 mo / 24 mo12 mo
    Automatic overtime conversionOn/offOff

    Tip: Start with 1:1 and 12 months expiration – that's common in the industry. Avoid "No limit" + "No expiration" since it creates a large vacation debt on the balance sheet.

    This feature is part of Vendion Staff.

    Curious how it looks in practice? Read more about the product or book a short demo.

    Was this article helpful?