It refers to the time the employee is allowed to compensate for his or her extra working hours as a leave. For example, if the employee is working 2 hours beyond their scheduled hours, they are allowed to use these two hours as a time off. It is a cost-efficient alternative to overtime pay as the employee will not get money for overtime, but also beneficial for the employee. It is only applicable after an employee has worked over an hour or two regularly beyond the scheduled working hour. It represents better flexibility in the company as it supports work-life balance.
