Compensatory Offs and Overtime
Hi,
I am the HR Manager of an ITES Company in NCR. I need your urgent assistance and guidance regarding the legal terms of Compensatory Off and Overtime.
One of my divisions has very high volumes during the month end. Every month on the 30th they received many files to process which have to be completed in 2 days. This amounts to about 300% more than the normal volume.
What we have done here is that we arrange for them to stay near office so that they can go and take rest once they work for 8 Hours. Again, they come back and start working. This saves the commuting time from their homes to the office.
The total working hours is around 30 Hours for this group during this 2 days. However, they take their breaks and also go to sleep as and when they want.
We give them Compensatory Offs for the extra time that they are working. For any extra hours over 8 Hours, they get equivalent number of Compensatory Offs. Usually, they get around 3 Days as Compensatory Offs for this extra time that they spend in office.
Now, we do not give them any Overtime Wages. We give them Compensatory Off instead of the Overtime Wages.
Our Company is registered under the Shops and Establishments Act and also under the STPI (Software Technology Parks of India).
Is this legal what we are doing. Can Compensatory Offs be given legally instead of Overtime Wages. If yes, please guide me towards any documentation or legal terms that I may be able to share with my management team.
Regards,
Raman
From India, Hyderabad
Hi,
I am the HR Manager of an ITES Company in NCR. I need your urgent assistance and guidance regarding the legal terms of Compensatory Off and Overtime.
One of my divisions has very high volumes during the month end. Every month on the 30th they received many files to process which have to be completed in 2 days. This amounts to about 300% more than the normal volume.
What we have done here is that we arrange for them to stay near office so that they can go and take rest once they work for 8 Hours. Again, they come back and start working. This saves the commuting time from their homes to the office.
The total working hours is around 30 Hours for this group during this 2 days. However, they take their breaks and also go to sleep as and when they want.
We give them Compensatory Offs for the extra time that they are working. For any extra hours over 8 Hours, they get equivalent number of Compensatory Offs. Usually, they get around 3 Days as Compensatory Offs for this extra time that they spend in office.
Now, we do not give them any Overtime Wages. We give them Compensatory Off instead of the Overtime Wages.
Our Company is registered under the Shops and Establishments Act and also under the STPI (Software Technology Parks of India).
Is this legal what we are doing. Can Compensatory Offs be given legally instead of Overtime Wages. If yes, please guide me towards any documentation or legal terms that I may be able to share with my management team.
Regards,
Raman
From India, Hyderabad
Dear Raman,
As per your query if the workmens are working on holiday the Compensatory offs shall be give to the workmen but in your case it seem instead of holiday they are working beyond priscribed working hours, in this situation as per my opinion and understanding overtime is time is payable to the employee to double the rate of normal wages. As per Act even overtime is also restricted to 50 hrs per quarter.
But this is applicable to workmen only, if your employee's are working as Manager and adminstrative capacity then as per your company policy.
87As per your query if the workmens are working on holiday the Compensatory offs shall be give to the workmen but in your case it seem instead of holiday they are working beyond priscribed working hours, in this situation as per my opinion and understanding overtime is time is payable to the employee to double the rate of normal wages. As per Act even overtime is also restricted to 50 hrs per quarter.
But this is applicable to workmen only, if your employee's are working as Manager and adminstrative capacity then as per your company policy.
You can continue with this policy as long as you give your employees a 21 day notice to your employees.It is not a non compliance if you are giving compensatory off.However, this is applicable to your employees and not to workmen
From India, Delhi
From India, Delhi
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Compensatory holiday Register.jpg
Compensatory Off_Shrt Leave.xls
Compensatory Off Policy.doc