Hi people,
Mine is a newly established IT company in Pune and we are working on fixing various policies for the company.
One confusion that we have is regrading the overtime policies followed in IT companies in India.
Our Director has specified that each employee has to put in a minimum of 10 hours each day because that is the standard industry practice in the IT industry. What are the maximum hours that the employee should be working in a week according to Bombay Shops and Establishment Act? I know it is 48 hours for a 6-day work week. But what about a 5-day work week, like we have? If it is 40 hours, should the employees be given overtime money for the extra 2 hours?
Also, an employee on probation is not allowed any sort of paid leave for 6 months, even if it is sick leave. Therefore if one employee takes a full day leave on a weekday but comes to work on a holiday like Saturday, can that be taken as a compensatory work day? And, similarly, can half days be compensated for by putting in extra hours?
From India, Pune
Mine is a newly established IT company in Pune and we are working on fixing various policies for the company.
One confusion that we have is regrading the overtime policies followed in IT companies in India.
Our Director has specified that each employee has to put in a minimum of 10 hours each day because that is the standard industry practice in the IT industry. What are the maximum hours that the employee should be working in a week according to Bombay Shops and Establishment Act? I know it is 48 hours for a 6-day work week. But what about a 5-day work week, like we have? If it is 40 hours, should the employees be given overtime money for the extra 2 hours?
Also, an employee on probation is not allowed any sort of paid leave for 6 months, even if it is sick leave. Therefore if one employee takes a full day leave on a weekday but comes to work on a holiday like Saturday, can that be taken as a compensatory work day? And, similarly, can half days be compensated for by putting in extra hours?
From India, Pune
Normal working hours is not fixed considering the kind of industry but it is according to the relevant Act under which the establishment falls. IT being under the Shops and Commercial Establishments Act have fixed working hours which will be applicable to all establishments including IT. As such, it may be 8 hours or 9 hours per day (Since Shops and Commercial Establishments Act is a state Act, there may be slight change) subject to 48 hours. The Act has also provided that the spread over ( the period including intervals of rest) should not exceed 10 hours and 30 minutes. There is provision that after every 4 hours of work the employees shall be given one hour rest. If you add all these, 10 hours of work is not practical for any establishment. Since, there is no special exemption granted to IT companies in this regard, if you frame a policy with 10 hours working time, the Labour Department may raise objection.
Placing an employee on probation is for the convenience of employer but it should not be to take away any right of employees conferred by labour laws. Therefore, an employee on probation should also be given Casual and Sick leaves during his probation period.
Regards,
Madhu.T.K
From India, Kannur
4193Placing an employee on probation is for the convenience of employer but it should not be to take away any right of employees conferred by labour laws. Therefore, an employee on probation should also be given Casual and Sick leaves during his probation period.
Regards,
Madhu.T.K
From India, Kannur
Thanks a lot Madhu, this was of great help.
I was wondering, if the employees are not giving leaves during the 6 month probation period, the leaves will be getting accumulated, right?
According to my understanding, under the Bombay Shops and Establisments act, which we comply to, it is mandatory to give 21 days of leave for every 8 month period that the employee has worked. Is that correct?
From India, Pune
I was wondering, if the employees are not giving leaves during the 6 month probation period, the leaves will be getting accumulated, right?
According to my understanding, under the Bombay Shops and Establisments act, which we comply to, it is mandatory to give 21 days of leave for every 8 month period that the employee has worked. Is that correct?
From India, Pune
Dear All, As per AP SHOPS&ESTABLISHMENT ACT above 8 hours company has to pay double amount for his Overtime Expenses (i.e. 10hours we need to pay for 2 hours that is double rate of his daily wages)
From India, Hyderabad
From India, Hyderabad
I have not gone in detail about Bombay Shops and Commercial Establishments Act but under Kerala Act which is almost similar to similar Acts of other states, it is 12 days CL and 12 days Sick Leave for a period of 12 months (not 8 months) and in addition to these 12 days Earned leave for those who have completed 12 months of service with the establishment.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Hello sonia,
this is sheela i am also working with IT company in pune. Its a newly started organisation, if u want we can share the information , problem what we face in the daily activities.
we can work together. my email. id is --
waiting for ur reply
sheela
From India, Pune
this is sheela i am also working with IT company in pune. Its a newly started organisation, if u want we can share the information , problem what we face in the daily activities.
we can work together. my email. id is --
waiting for ur reply
sheela
From India, Pune
Hi all, [Specially Mr Madhu T.k]
In Maharashtra as well asking an employee to work for more than 8 hours in a day is of course illegal. Even if the company has 5 day's week - on no day employee can be made to work for more than 8 hours [unless overtime is paid]. There is a catagorical bar in Bombay Shops and establishments Act to that effect.
Other provisions of the Bombay Shops and establishments Act:
-21 days earned/paid leave in a year
-3 national and one state holiday [Maharashtra Day] [else OT + other Compensatory off]
-Each week one holiday must [else OT must be paid]
-Probationer is in no way treated differently by the Bombay Act - for the purposes of rights as to leave etc he is at par with other employees - provided he has completed the number of days of employment as required by the Act [What most employers dont follow is the law that an employee can be appointed on probation only for a period of 3 months and that also only once - probation can not be extended [Subject to certain exceptions provided by law] Appointment on probation for a day more than 3 months is illegal and the employee is deemed to be permanent on the first day of employment after completion of the 3rd month whatever may be the terms in his appointment letter - Unfortunate thing is that evry few employers in IT industries know this - and even lesser number of employers follow this legal provision.
Labour Law Consultant, Pune
Ph 9850083760
From India, Pune
In Maharashtra as well asking an employee to work for more than 8 hours in a day is of course illegal. Even if the company has 5 day's week - on no day employee can be made to work for more than 8 hours [unless overtime is paid]. There is a catagorical bar in Bombay Shops and establishments Act to that effect.
Other provisions of the Bombay Shops and establishments Act:
-21 days earned/paid leave in a year
-3 national and one state holiday [Maharashtra Day] [else OT + other Compensatory off]
-Each week one holiday must [else OT must be paid]
-Probationer is in no way treated differently by the Bombay Act - for the purposes of rights as to leave etc he is at par with other employees - provided he has completed the number of days of employment as required by the Act [What most employers dont follow is the law that an employee can be appointed on probation only for a period of 3 months and that also only once - probation can not be extended [Subject to certain exceptions provided by law] Appointment on probation for a day more than 3 months is illegal and the employee is deemed to be permanent on the first day of employment after completion of the 3rd month whatever may be the terms in his appointment letter - Unfortunate thing is that evry few employers in IT industries know this - and even lesser number of employers follow this legal provision.
Labour Law Consultant, Pune
Ph 9850083760
From India, Pune
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