Compensatory Time Off (Comp Time)
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:
| Concept | What it is | Where it shows |
|---|---|---|
| Overtime hours | Work over 40 h/week | Time report, payroll data |
| OB supplement | Compensation for evenings, weekends, holidays | Payroll data (SEK) |
| Comp time | Saved overtime hours taken as time off | Comp 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:
- Go to the employee's detail page
- Click the Comp time tab
- 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:
| Type | Source | Effect |
|---|---|---|
| Earned | Approved overtime (manually or automatically) | Increases balance |
| Taken | Approved time off deducted from comp time | Decreases balance |
| Paid out | Converted to cash salary | Decreases balance, added to next payroll |
| Expired | Forfeited (exceeds expiration time) | Disappears without compensation (if policy allows) |
Add comp time manually:
- Open the comp time tab
- Click Add transaction
- Choose type, enter hours, date and note
- 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:
- Go to Absence in the portal
- Click New absence request
- Choose type: Comp time
- Choose dates and scope
- The system checks that the balance is sufficient
- 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:
| Setting | Options | Default |
|---|---|---|
| Enable comp time | On/off | Off |
| Conversion factor | 1:1, 1:1.5, 1:2 | 1:1 |
| Max balance per person | No limit / 40 / 80 / 120 h | No limit |
| Expiration time | None / 6 mo / 12 mo / 24 mo | 12 mo |
| Automatic overtime conversion | On/off | Off |
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.
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