Umakanthan53
Labour Law & Hr Consultant
Saswatabanerjee
Partner - Risk Management
Bharat Gera
Principal Hr Consultant
RAMU-HR
Manager-hr
Korgaonkar K A
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Respected seniors,
This is Ramu working as DM-HR in manfacturing unit at Vijayawada. My query is - We have engaged one contractor (Licensed) for construction of factory buildings on a expansion project subject to peace rate work. The contractor is engaging the manpower for more than 12 hours in a day.
Can we allow them to work more than 12 hours in a day even though it is peace rate work or restrict to 8 hours ?
I requested the seniors kindly advise me on this issue
With regards
Ramu
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Dear Ramu, Can you pl tell further whether the " Piece Rate " mentioned is in respect of the item-wise work assigned to the contractor or in respect of the wages paid to the contract labour?
1. You have not mentioned as to how contractor is paying, is it hourly rate, daily rate or piece rate?
2. If contractor is taking work for more than 8 hours without paying over time, it is illegal and exploitation.
3. Contractor is obliged to pay overtime.
Dear Ramu ji,
You need to refer the Law relating to working hours in Factory Act as applicable to you. You can not have working hours for more than 48 in a week and 9 in a day.
If you are engaging any employee for more than 48 hours in a week and 9 hours in a day, you are liable to pay overtime wages at twice the rate of ordinary wages to such employee. You also need to see the rule of restricting overtime hours under the Factory Rules as applicable in your State.
This working hours are applicable to the piece rated employees also. But one thing I failed to understand that how the construction workers are paid on peace rate basis? What is the criteria?
I know construction workers are paid on measurement basis or "Hazeri" basis.
Peace rate or measurement rate or hazeri rate should be fixed such a way that wages for nine hours of work should not be less than minimum wage rate.
Whether your contract with the contractor is for time cost, piece rate, lump sum or service fees, they still come under the contract labour act and the rules specify that you are responsible and liable of all non-compliances the contractor does. So you can not allow the contractor to deploy workers on 12 hour basis
Hi All;

Time Rate and Piece Rate are different. What we pay to bottom line worker is important. In this case the Civil Contractor is getting payment on piece rate basis. This is perfectly fine. But he may be paying his workers on time rate or piece rate. Ordinary mazoors, office staff will be time rate. Centering work, Painter, Electrician are paid on job basis i.e. piece rate. But in turn they may be paying their workers on time rate.

In case of time rate, work is restricted to average 8 hours a day or 48 hours a week. Work more than that has to be paid at overtime rate, which twice the normal rate of wages. Here also, there are many many employers who do pay at single rate.

In case of piece rate, the law says that in any case the piece rate wages cannot be less than the time rate of wages. This means if worker produces less, and his payment comes to X according to piece rate, and time rate is X + Y, then he must be paid X + Y. If piece rate wages come to X + Y + Z then the worker must be paid X + Y + Z.

Now a days, piece rate wages are in certain segments only. So also, mostly all workers are paid time rate or piece rate. Combination is very rare.

Vibhakar Ramtirthkar

9371001906

Labour Management Advisor and Union Leader.
Respected seniors Thank you very much for your valuable advises on this issue Ramu
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