Compensatory Off is an entitled leave that an employee can take on a working day as a compensation for working at employers request on a holiday or weekend. In simple terms, when an employee works overtime at the request of his employer, then later he/she can take time off or compensatory off from their work.
Basically compensatory off leaves are provided in order to reward the employee for the extra effort that he/she puts in, for the development of the organization. This is a means of taking care of the employee on behalf of the organization so that the employees, in-turn take equal care of the organization by maximizing their efforts.
Learn More about Unique leave policy here.