Partner - Risk Management
Industrial Relations
Assistant Human Resource Manager
Hr Generlized
Sr. Personnel Officer
Property Management
+2 Others

Thread Started by #jeeni

Dear All,
Whether PF deduction is applicable on Overtime. We have contract labour doing 12 hrs shift, As a current practice, we have been showing normal shift of 8 hrs & rest 4 hrs we have been showing as extra duties.
What contractor is doing that they have been showing this part as other allowance in the salary slip.
What is the currect way to go forward.
9th June 2011 From India, New Delhi
OK! But i suppose that we have to pay overtime at double rate, which will increase all other expenses & heads. Please suggest how to tackle this. Regards Ranjeet
9th June 2011 From India, New Delhi
there is no way that one can escape liability of paying double overtime without esi deduction,but unfortunately maximum company are practicing paying single ot and that too with no esi deduction on it.
9th June 2011 From India, Delhi
These types of increased burdens only making the contractors to make two types of paysheet one for actual payment and another for PF and ESI Submission purpose.
I do not know, when the Government will understand and negotiate with the organisations to maintain a single, correct and accepted by all type statutory records, by which some percentage of corruptions may come down.
Let us Hope in near future.
9th June 2011 From India, Kumbakonam
I know but currently in maximum company this practice has been prevailing.
It all depend on top mgmt, how they want to frame policies. Most of the company are now adopting cost reducing strategies.
9th June 2011 From India, New Delhi
Dear All,
Pls. read minimum wages Act & Factories Act, You all will understand Why These Double OT rule had been established.
Pls. convince your Co. to pay Double OT and ESI amount on OT. Help in making india workmen live a better & healthy life.
Manish Gupta
10th June 2011 From India, Mumbai
we are the C & F of MNC companies last 5 years onwards. we are taking Ap & Shops Establishment Act licence from labour department for our premises wise.
But our MNC agreements showing as Contractor please give advise whether we have to apply Contract licence or AP & Shops Est Act and also give what types of wages we have to pay with break up of PF & ESI & PTand also 40,000 Gross salary may please give break up PF & PT.
If you have any Act please give reference for our use.

10th June 2011 From India, Hyderabad
The contractor is required to pay proper dues to the government and pay all statutory dues to the workers. The principal employer is responsible to make it happen. If this rule was not there, then every company would appoint someone to be a contractor and simply skip the statutory dues. The rules in this regard are in fact quiet fair and simple. Its time we stop crying about government rules everywhere. First look at what the employers are doing which necessitated such rules in the first place

10th June 2011 From India, Mumbai
Employing workers for 12 hours is against law. You may note that in case of OT exceeding 48 hours per month for an employee in any establishment, it indicates that there is a vacancy for a full time employee and the establishment is avoiding the same.
Shops and Establishment Act clearly specifies the number of hours an employee can be made to work per week. The contractor is not showing the salary for OT as part of the salary to escape from these complications. This is something that cannot be avoided in the present scenario.
If you are certain that the contractor complies to EPF, ESIC, Bonus etc. to all employees (which most contractors do not follow), then showing OT as additional allowances can be accepted by you though not legal.
10th June 2011 From India, Mumbai
Ot limit is 48 hours a quarter, not per month.
Actually, by not showing ot at ot but something else, when time records are available, you run the risk of later being asked to pay the actual ot again. All someone has to do is convince most workers to say they didn't get ot, and this allowance is for something else

11th June 2011 From India, Mumbai
Dear Sir, Yes, you are absolutely right. Government policies itself are making lot of confusion. THERE IS NO SINGLE STANDARD POLICY. Hope something might be done in future.
11th June 2011 From India, Kolhapur
Please do not try to run away from the law of land or to avoid it. Follow the rules strictly. As an HR professional, it is our duty to keep the management informed about the laws and advice them to follow it.
Not following it, may lead to bigger and much complicated situations which may be detrimental for the existence of the organization itself.
Practicing continuous overtime, to such an extent that it is almost 12 hrs of daily work is a crime.
PF is not applicable to Overtime.
Overtime needs to be paid double.
ESIC is payable on overtime.
Ensure salary slip for the contractor workers as well.
You will appreciate that the contractor workers have become more informed about their rights. Please ensure it to the best of your knowledge.
Ranjeet Singh
11th June 2011 From India, Jamshedpur
For such cases rules have already been prescribed and defined. But employers are defying the rules for making maximum profits by exploiting the employees. They are taking advantage of demand and supply gap of labour. In other words. they are making profits on your sweets. Forget about private companies. Even some Govt companies due to ignorance of law. companies, are coping this practice. It is the duty of Appropriate Govt. to interfere and take suomoto action. BUt unfortunately they have failed to Diascharge their responsibilities . EVen such facts are brougt to their notce they with the conivance with employer hush up the matters leaving the poor employees in the lurch. Nevertheless it is the moral duty of employees to register such irregularities with the appropriate authoritie. They can also write to the CHief Vigilance officer, CBi, for exposing the nexus of GOvt. Authorities and employers. This is my individual opinion. ONe should take such steps keepin in mind their individual capacity.
12th June 2011 From India, Calcutta
In our establishment contract workers are working in shifts.
When there is OT, contractor calculate it on the per day basic wage .
Say if OT is 1290, 1290/170(min wage)=7.588hrs, 961/170=again, 5.6 hrs. . How is it possible.It should be 8 hrs or 5 hrs. it cant be in decimal.
1)I want to tell my contractor the correct method of calculating OT.
2) Suppose if a person has worked for 8 hrs in OT and then again for 1/2 hour how that OT will be calculated.
25th October 2013 From India, Kolkata
If we did double payment in EPFO how to get refund or adjust in next month.
please give the solution and also if some one have letter format for this pls share me.
Sandeep Bainsla
21st May 2019 From India, Faridabad
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™