Hi Vidya,
I would like to know whether the overtime done by a contractual employee can be converted into a day's work. For example, in our organization, if an employee has done 9 hours of overtime, we adjust 8.5 hours as a day's work against the day for which he has been absent and pay .5 hours of overtime. That is, we convert the day when he was absent as the day he has worked by adjusting his 8.5 hours of overtime inclusive of lunch. We pay double for the remaining hour of overtime done.
Another thing I would like to know is when an employee is doing overtime after his regular duty hours (i.e., 8.5 hours), is it legal to deduct his lunchtime from the overtime? For instance, if an employee has done his regular duty of 8.5 hours (.5 hours inclusive of lunch in his regular shift) and after that, if he is performing overtime for 9 hours, is it legal to pay overtime for 8.5 hours only, considering that he has taken .5 hours for lunch during overtime as well.
Regards,
Vidya
From India, Delhi
I would like to know whether the overtime done by a contractual employee can be converted into a day's work. For example, in our organization, if an employee has done 9 hours of overtime, we adjust 8.5 hours as a day's work against the day for which he has been absent and pay .5 hours of overtime. That is, we convert the day when he was absent as the day he has worked by adjusting his 8.5 hours of overtime inclusive of lunch. We pay double for the remaining hour of overtime done.
Another thing I would like to know is when an employee is doing overtime after his regular duty hours (i.e., 8.5 hours), is it legal to deduct his lunchtime from the overtime? For instance, if an employee has done his regular duty of 8.5 hours (.5 hours inclusive of lunch in his regular shift) and after that, if he is performing overtime for 9 hours, is it legal to pay overtime for 8.5 hours only, considering that he has taken .5 hours for lunch during overtime as well.
Regards,
Vidya
From India, Delhi
9 views & not even a single reply. Is it that all my seniors are ignorant about this or they don’t want to share their information.
From India, Delhi
From India, Delhi
Dear Vidhya,
Overtime is an exclusive component that cannot be adjusted as it has very strict rules. Yes, an employee can do overtime after their normal duty hours, but not more than 4 hours in a day, not more than 12 hours in a week, and not more than 50 hours in a quarter. It can be extended up to 75 hours in a quarter after pre-approval from the labor department. It has nothing to do with lunch (as there is a limitation of 4 hours in a day, hence no deduction for lunchtime). You need to maintain an overtime register as per the act and make payment at double the rate with the deduction of ESI and Income tax. It is better to discourage overtime practices and create some policy regarding incentives or special allowances.
Regards,
Baba Naresh
From India, Delhi
Overtime is an exclusive component that cannot be adjusted as it has very strict rules. Yes, an employee can do overtime after their normal duty hours, but not more than 4 hours in a day, not more than 12 hours in a week, and not more than 50 hours in a quarter. It can be extended up to 75 hours in a quarter after pre-approval from the labor department. It has nothing to do with lunch (as there is a limitation of 4 hours in a day, hence no deduction for lunchtime). You need to maintain an overtime register as per the act and make payment at double the rate with the deduction of ESI and Income tax. It is better to discourage overtime practices and create some policy regarding incentives or special allowances.
Regards,
Baba Naresh
From India, Delhi
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