Labour Law & Hr Consultant
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Deputy Manager - Hr
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Thread Started by #premaram

Dear All, Could you please provide details on over time limits as per factories act. Thanks & Regards Ram
28th February 2012 From United States, Southfield
Per day - 8 hour (regular working hour)
Per week -48 hour (regular working hour)
Per day - 1 hour over time applicable as per the factories act.
if your organisation provide best facility - as per above rules update your weekly and daily working hour details to GLO & DISH in form I
28th February 2012 From India, Nasik
Dear Ram,
As per factories Act:
Overtime : Where a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages.
For the purposes of sub-section (1), "ordinary rate of wages" means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of foodgrains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work.
(i) the total number of hours of work in any day shall not exceed ten hours;
(ii) the spread over inclusive of intervals for rest, shall not exceed 12 hours in
any one day;
(iii) the total number of hours of work in a week, including overtime, shall not
exceed sixty;
(iv) the total number of hours of overtime work shall not exceed fifty for any
one quarter.
29th February 2012 From India, Mumbai
Dear Sir,
In any day 2 hours (OT) allowed normally - 8 Hrs. normal work = 2hrs oT
In any week 12 hours(OT) Normal hours-48 + OT will be 12 Hours = Total 60 Hrs.
In any quarter total hours of oT should not exceed 50 Hours.
In practical it is not possible to follow. Workmen will be normally availing ESI Leaves, other leaves,
absenteeism. Therefore, workmen will be forcefully engaged OT beyond the allowed hours as per the
Factories Act. In continuous process factories, engagement of OT is a must. Any how we have been paying O.T wages twice of normal hours.
HR/IR Consultant
1st March 2012 From India, Hyderabad
Dear Ram ji.
As per the Factories Act, 1948
Section :64 (sub rule: 4)
2 hours per day, 12 hours per week and 50 hours per quarter (Q1, Q2...) is the stipulated limit for overtime work as per Factories Act 1948.
The Factory Inspector may extend this to 75 hours a quarter.
The total number of hours of work in a week including overtime shall not exceed 60.
Explanation : ‘Quarter’ means a period of three consecutive months beginning on the 1st of January, the 1st of April, the 1st of July, or the 1st of October.
2nd March 2012 From India, Kakinada
Dear all,
first of all thanks a lot for putting some trustworthy insight on OVERTIME. i request you to please put a excel sheet of the same to make me even clear. it does not include anything apart from basic and other allowances, so it means that salary break up i mean the other component of salary structure should not be taken into the consideration, is it so? please put the explanation of the same.
24th March 2012 From India, Ahmadabad
Dear Sir if the worker or staff working in the after shift half an hour they include in o.t or not
19th September 2013 From India, Kanpur
Hi Friends,
I have very logical and important question related to Overtime payout.
as per Factorys Act all the individuals employed in Factory are considered to be workers, then why overtime is paid only to labour category worker (blue collar) and not o supervisory or managerial level workers??
please try to answer my question asap with your reasoning.
thank you in advance
Asst. Manager Human Resources.
25th December 2013 From India, Mumbai
The act is very clear stating the following:
Section 64.4, III & IV:
1. The total number of hours of work in a including overtime, shall not exceed sixty
2. The total number of hours of overtime shall not exceed fifty for any one quater.
The above clause need not to have any approval, a factory can perform 50 hours of overtime during any quater without any prior approval..
Section 65.3, IV
1. The total number of hours of overtime work in any quater shall not exceed seventy five hours (exemption required)
You have obtained an apporoval for this clause from the inspectorate of factories.
26th December 2013

Overtime for managerial/supervisory staff

If you look into the Section 2 (s) of the Industrial Dispute Act,1947 defines "workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person - (i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

So acccording to this, the managerial / supervisory cadre employee's are not classified as workman and that is why this cadre people are not paid overtime.
26th December 2013
it depends on the action initiated by the inspectorate of factories. You can pretty well see, so many companies are violated the law and pay their workers off the record and still they survive because of the nature of business. So if we get into other side of the law, hope it wont make sense. So better stick to the law and ensure you never violate the law. That's good for the company as well as to the employees.
29th October 2014
Dear Sir, can any one tell us how to calculate HRA? some salary structure 25% some are 40% so please confirm me what is policy?
15th March 2015 From India, Pune
Dear All,
I have read a news about change in quaterly limit of overtime in Maharashtra. but in the labour cite i am not getting any amendment gazatte.
kindly guide me with the same.
1. is the quaterly limit extended from fifty to seventy five and now it says 115 if yes, kindly provide me with the amendment
2. can females in Maharashtra in factory, worl till 9 pm?
awaiting the answer
Thank you
12th April 2016 From India, Gurgaon
Dear Shailendra,
The definition of the term " worker" under the Factories Act,1948 is not a general one to include all and sundry employed therein within the meaning of the term but a qualified term restricting its application only to those who are engaged in actual manufacturing process. Therefore, those employed in a factory in managerial or supervisory levels, though such activities are performed in respect of the same manufacturing process can not be treated as workers for the purpose of overtime work.
1st May 2016 From India, Salem
1. No adult worker shall be required or allowed to work in a factory for more than FORTY-EIGHT HOURS IN ANY WEEK.

2. No adult worker shall be required or allowed to work in a factory for more than NINE HOURS IN ANY DAY: Provided that, subject to the previous approval of the Chief Inspector, the daily maximum specified in this section may be exceeded in order to facilitate the change of shifts.

3. The periods of work of adult workers in a factory each day shall be so fixed that no period shall exceed five hours and that NO WORKER SHALL WORK FOR MORE THAN FIVE HOURS BEFORE HE HAS HAD AN INTERVAL FOR REST OF AT LEAST HALF AN HOUR.

4. State Government or, subject to the control of the State Government, the Chief Inspector, may, by written order and for the reasons specified therein, exempt any factory from the above provision SO HOWEVER THAT THE TOTAL NUMBER OF HOURS WORKED BY A WORKER WITHOUT AN INTERVAL DOES NOT EXCEED SIX.

5. The periods of work of an adult worker in a factory shall be so arranged that inclusive of his intervals for rest under section 55, THEY SHALL NOT SPREAD OVER MORE THAN TEN AND A HALF HOURS IN ANY DAY: Provided that the Chief Inspector may, for reasons to be specified in writing increase the SPREAD OVER UP TO TWELVE HOURS.

See this for total details Working Hours and Holidays Under Factories Act 1948 | Indian Labour Laws & Shram Suvidha Simplified
21st October 2016 From India, Kolkata
can anyone help me out with the Over time pay under factories act.
1. Is the eligibility based on the designation as mentioned in the above conversation?(only for workman)
2. if an employee drawing a gross salary of Rs.25000/-and above, will he be paid OT?
3. My doubt is to put a ceiling based on the salary or designation.
Quick response on the above queries will enable me to formulate a policy for my employees at my current company
9th November 2017
For eligibility of overtime for "Departmental Manager"under Factory Act, 1948; Section 59 says that:
Where a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages.
Now it is important to know who falls under definition of worker. Under Factory Act 1948 there are 3 category of person i.e.
1. Occupier under Section 2 (n) of The Factory Act, 1948.
2. Manager under Rule of The Factory Rules of concern state.
3. Worker under Section 2 (l) of The Factory Act, 1948.
Here definition of Manager under Rule 2 (l) of The Punjab Factory Rules, 1952 does not include departmental manager like quality manager or HR Manager etc. because appointment intimation do not forwarded to Factory Inspector by occupier under section 7 (4) of factories Act, 1948 for appointment of departmental manager, so we can conclude that departmental manager are different from Manager under Rule of Factory Rules.
It is important to understand position of departmental manager under Factories Act, 1942. As per my understanding we can not import definition of workman under Section 2 (s) from the Industrial Dispute Act,1947 reason of this is objective of both Acts are entirely different.
The main object of the Factories Act, 1948 is to ensure adequate safety measures and to promote the health and welfare of the workers employed in factories whereas The Industrial Disputes Act, 1947 makes provision for the investigation and settlement of industrial disputes and for certain other purposes.
This is important to find categorization of departmental manager under Factories law only. We have to check definition of worker minutely because departmental manager can not be Occupier under Section 2 (n) of The Factory Act, 1948 or Manager under Rule 2 (l) of The Punjab Factory Rules, 1952.
There is only category left under Factories Act, 1948 i.e. “Worker” means a person employed directly or by or through any agency (including a contractor) with or without knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in any other kind or work incidental to, or connected with, the manufacturing process or the subject of the manufacturing process but does not include any member of the armed forces of the Union. [Section 2(1)]
The definition contains following ingredients :
There should be an ‘employed person’
Meaning of the word “employed”: The concept of “employment” involves three ingredients, viz. employer, employee, and contract of employment. The ‘employer’ is one who employs, i.e., one who engages the services of other persons. The ‘employee’ is one who works for another for hire. above understanding comes from case law of Chintaman Rao v. State of M.P. AIR 1958 S.C. 388 which said that :
The employment is the contract of service between employer and employee where under the employee agrees to serve the employer subject to his control and supervision. The prima facie test for determination of the relationship between the employer and employee is the existence of the right of the employer to supervise and control the work done by the employee not only in the matter of directing what work the employee is to do but also the manner in which he shall do his work.
Employed in work incidental to process: This clause is very important because it enlarges the scope of the term, manufacturing process.
Following illustrative cases will clarify the meaning of this clause:
(1) In Shinde v. Bombay Telephones, 1968 (11) LLJ 74, it was held that whether the workman stands outside the factory premises or inside it, if his duties are connected with the business of the factory or connected with the factory, he is really employed in the factory and in connection with the factory.
(2) In Works Manager, Central Rly. Workshop Jhansi v. Vishwanath and others, it was held that the definition of worker does not exclude those employees who are entrusted solely with clerical duties, if they otherwise fall within the definition of ‘worker. Timekeepers employed to maintain attendance of the staff, job cards particularly of the various jobs under operation, and time- sheets of the staff engaged in production of
spare parts, repairs, etc.; and head time-keeper who supervise the work of the time-keepers, perform work which is incidental to or connected with the manufacturing process carried on in the factory and would therefore, fall within the definition of the worker in the Act.
Now it is very important to understand nature of work of departmental manager. whether departmental manager works under supervision and control of employer or departmental manager have liberty to work as per his discrition.
In Shankar Balaji Waje v. State of Maharashtra, AIR 1963 Bom. 236, the question arose whether bidi roller is a worker or not. The management simply says that the labourer is to produce bidies rolled in a certain form. How the labourer carried out the work is his own concern and is not controlled by the management, which is concerned only with getting bidies rolled in a particular style with certain contents. The Supreme Court held that the bidi roller is not a worker.
The whole conception of service does not fit in well with a servant who has full liberty to attend to his work according to his pleasure and not according to the orders of his master. Where the employer did retain direction and control over the workers both in manner of the nature of the work as ‘also its details they will be held as workers.
In State of Kerala v. R.E.DSouza; Women and girls employed in peeling, washing etc., of consignment of prawns brought on the premises at any time of the day or night, without any specified hours of work and without any control over their attendance or the nature, manner or quantum of their work and who after finishing the work go to other premises in the locality where similar consignment of prawns are received, are not Workers.
So deciding factor about category of departmental manager whether falls under definition of worker or not; working conditions under employment are required to examine like:
1. whether departmental manager working hours is as per his own sweet will or not?
2. whether departmental manager working method is out of employer supervision or not?
3. whether departmental manager working is out of employer control or not?
if answer of above three question's answer are "No"; then departmental manager falls under definition of worker if his works within factory for manufacturing process or not.
if answer of above three question's answer are "Yes"; then departmental manager do not falls under definition of worker even he works within factory for manufacturing process.
In question of whether all employees are workers court said as below:
Since the word employee has not been defined in the Act it follows that all the workers within the ambit of the definition under the factories Act would be employees, while all employees would not be workers (Harbanslal v. State of Karnataka, (1976)1 Karnt.J.111).
All persons employed in or in connection with a factory whether or not employed
as workers are entitled to the benefits of the Act (Union of India v. G.M. Kokil, 1984 SCC (L&S) 631).
Once it is established prima facie that premises in question is a factory within the meaning of the Act, the provisions of Section 103 as to the presumption of employment are immediately attracted and onus to prove the contrary shifts to the accused (Prafulbhai Patadia v. The State, 1976 (12) E.L.R. 329).
13th July 2018 From Malaysia, Seremban
Please share Notification on revised Overtime Limit.
26th December 2018 From India, Pune
In this case, can anybody tell me is it permit to work 48hrs in a month (12/week*4=48) in a construction company??
If then, it will go 144hrs in a quarter where it couldn't exceeds 50hrs, Is it okay??
6th May 2019 From India, Madras
Dear All,
kindly help me to provide any notification for below points.

1. is the quarterly limit extended from fifty to seventy five and now it says 115 if yes, kindly provide me with the amendment
2. can females in Gujarat in factory, work till 9 pm?

awaiting the answer

Sanjay Parikh
14th May 2019
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