Industrial Relations And Labour Laws
Partner - Risk Management
Senior Manager Hr
Law permits that you can reasonably employ a workman for 8 hours in a day and this is excluding the intervals of rest. The working hours including intervals of rest which is called Spread over can be 10 hours and 30 minutes per day. At the same time, on any particular day you can permit one to work for 9 hours without paying overtime for the additional one hour he has worked. Overtime is payable only if he has worked for more than 48 hours in a week. That means if you have 9 hours per day and have only 5 days working the normal working hours in a week will be 45 hours and there is no question of paying overtime wages since nobody should have worked for more than 48 hours.
5 days working with one day as loss of pay leave is not a good HR practice. Loss of pay is marked when the establishment is open but the worker does not turn up for work. This will have impact on Pension, Gratuity and other terminal benefits. Moreover, for one who has put in some additional hours or overtime, may fail to get it just because he is absent on one day. On the other hand, if the normal working hours is 45 hours per week then any person who exceeds 45 hours will be benefited by overtime payment. Please see that working of 48 hours is not required in such cases where the company is working only for 45 hours and in such a scenario, 45 hours will be taken as the bench mark for deciding overtime. Please refer Philips India Ltd Vs Labour Court, Madras ( 1985 AIR 1034)
Now, if you make the shifts like 1st and 3rd weeks with 9 hours of 5 days and 2nd and 4th weeks with 8 hours of 6 days, you will be losing 6 hours per month. This can be ignored as an employee welfare scheme. But if you cannot even ignore this, please do not go for 5 days week. It should never be at the cost of employee.
19th December 2016 From India, Kannur
20th December 2016 From India, Madras
Reducing the number of holidays or leaves per annum subject to the statutory holidays as per your state's industrial Establishment (National and Festival Holidays) Act and the Factories Act/ Shops Act, as the case may be, is another option. This is possible only if you have more number of holidays and leaves than what are prescribed under their above Acts.
20th December 2016 From India, Kannur
HR & Labour Law advisor
20th December 2016 From India, Mumbai
21st December 2016 From India, Kannur
What they are basically saying is that they will give 2 days a week off, but you need to lower the pay proportionately
That is a bad idea, first because it's complicated and likely to cause dispute
If you have to do it at all, do it during your next increment cycle. Lower increment is allowed, lowering actual wage rate is not.
You are a trading company. Dispatch is not in Saturday, so only paper work probably happens.
If you are willing to work an hour extra every day (allowed under law), then the differential productivity loss is minmimum. If employees are not willing to work the extra hour also, then don't change. They knew the job timing and Saturday working when they Joined
24th December 2016 From India, Mumbai