Navigating the compensatory leave in Singapore can be challenging. This guide clarifies the nuances of compensatory leave, addressing common queries and providing a comprehensive overview.

Understanding Compensatory Leave in Singapore

In Singapore, compensatory time off, often referred to as time off in lieu (TOIL) or comp time, is a common practice allowing employees to receive time off instead of overtime pay for working beyond their contractual hours. It's crucial to understand that this is not a legally mandated benefit for all employees.

Eligibility for Compensatory Leave

Eligibility for this type of leave isn't universal. Employees covered under Part IV of the Employment Act (workmen earning up to $4,500 per month and non-workmen earning up to $2,600 per month) are generally entitled to overtime pay. However, employees in managerial or executive roles often negotiate this leave provisions within their employment contracts or company policies.

How Compensatory Leave Works

• Accrual: Employees accumulate compensatory leave for working extra hours beyond their normal schedule.
• Calculation: The calculation method varies. It might involve banking the exact extra hours worked, accruing a percentage of annual working hours, or accumulating up to a rolling cap (e.g., a maximum of 20 hours within a 3-month period).
• Redemption: Employees request to use accrued leave, specifying dates and hours. Managers review requests, considering workload and deadlines, approving or denying them within a reasonable timeframe (e.g., 48 hours).
• Documentation: All compensatory leave arrangements should be documented in writing and recorded in the employee's personnel file.

Expiry of Compensatory Leave

Accrued leave doesn't last indefinitely. Employers typically set expiry periods (e.g., within the same calendar year, 6 months, or 12 months of accrual). This encourages timely usage and manages company liability.

Payment in Lieu of Unused Compensatory Leave

Upon employment termination, employers may compensate employees for unused leaves, calculated fairly according to the agreed-upon terms. This is not a mandatory practice.

Compensatory Leave vs. Compassionate Leave

It's important to distinguish between compensatory leave and compassionate leave (also known as bereavement leave).

Compassionate Leave

• Legal Entitlement: There's no statutory entitlement to compassionate leave in Singapore. It's entirely at the employer's discretion.
• Common Practices: Companies typically offer 2-5 days of paid or unpaid leave, depending on the relationship with the deceased.
• Policy Requirements: Employers should clearly define "immediate family member," specify the number of days offered, and require supporting documentation.

Compensatory Leave and Public Holidays

The rules for compensatory leave when working on public holidays differ based on Employment Act coverage:

• Employment Act Coverage (Part IV): Employees are entitled to additional pay, not compensatory leave. However, a replacement day off can be mutually agreed upon.
• Non-Employment Act Coverage (Part IV): Compensatory leave can be mutually agreed upon, or the employer may decide the duration based on hours worked on the holiday.

Key Considerations for Compensatory Leave

Is Compensatory Leave Mandatory in Singapore?

This leave is not a mandatory benefit for all employers in Singapore; however, exceptions apply, such as when an employee is required to work on a public holiday. In such cases, employers must provide either an extra day's salary or a day off in lieu, as mandated by the Employment Act.

Compensatory Leave for Part-Time Employees

Part-time employees in Singapore are entitled to overtime pay, not compensatory leave, for additional hours worked, as stipulated by the Employment Act. This applies to part-time employees earning up to S$2,600 for non-workmen and up to S$4,500 for workmen under Part IV of the Act. Overtime pay is calculated at no less than 1.5 times the basic hourly rate and is provided in monetary form, not as compensatory leave. However, this entitlement only applies to those covered under the relevant provisions of the Employment Act.

Payment for Unused Compensatory Leave Upon Resignation

Payment upon resignation depends on the employment contract. There's no automatic entitlement; it's often determined by mutual agreement or contract stipulations.

Employer's Right to Deny Requests

Employers can deny the requests based on the employment contract, company policies, operational needs (e.g., excessive simultaneous leave requests, impacting workload), notice periods, or probationary periods.

Applying for Compensatory Leave

• Confirm Eligibility: Check your company's policy or employment contract.
• Understand Policy: Familiarize yourself with the company's specific compensatory leave policy.
• Calculate Accrued Hours: Determine the number of accrued hours.
• Submit Formal Request: Provide details of extra hours worked and preferred leave dates to your supervisor.
• Approval Process: Await approval (typically within 48 hours).
• Record Keeping: Ensure the approval is documented and sent to HR.

Overtime Pay vs. Compensatory Leave

While both compensate for extra work, they differ significantly:

Mandatory for eligible employees under the Employment Act, but with exemptions for certain categories of workers such as managers, executives, domestic workers, and public servants.

This guide provides general information. Always refer to your specific employment contract and company policies for accurate and detailed information regarding compensatory leave in your workplace.