Madhu.T.K
Industrial Relations And Labour Laws
Srinath Sai Ram
Hr Manager
Good_hr
Hr Officer
+2 Others

Thread Started by #Anonymous

According to section 59 of the factories act 1948 the worker working more than 8 hrs is entitled to overtime wages and such wages shall be paid at double the rate.
However in our company there is policy of giving Comp off for such extra worked. so is this right as i will get only single payment and that too in non cash nature.
Is there any legal case laws or judicial pronouncement relating to this issue, please need ur help on this issue.
19th February 2018 From India, Chennai
Dear Narayanan, you have not mentioned your Designation/Nature of Duties Performed, Details about your Establishment/Factory
19th February 2018 From India, New Delhi
Law is clear on Overtime.
Double the rate of ordinary wages.
The wordings of the Act are clear and unambiguous.
Extra wages for overtime.—
(1) 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. 1[(2) 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
a plain reading of the wordings of the section make it clear .
Read Sec 53 of the Factory Act for understanding Compensatory Act.
Proposition is clear.Over time means double wages for the number of hours.
Limits of OT are also stipulated.
19th February 2018 From India, Pune
Dear colleague,
As per the provisions of the F.A. you cannot substitute O.T with compensatory off. For O.T hours , you have to pay at double the rate and for working on weekly off the same has to be compensated by giving compensatory off which should be given on or before 1o th working day.
Regards,
Vinayak Nagarkar
HR-Consultant
19th February 2018 From India, Mumbai
I do agree with Mr Nathrao & Mr Vinayak Nagarkar that overtime shall be paid at doubled the rate. But we need to understand in the prospective of the establishment who has adopt it as a policy. The working on off-day is also attracts payment under over time but compensate with Compesatory-off for such extra worked.
There is this nothing wrong in substitution with an extra leave. In my opinion the workman/workmen should refer the matter to Labour office/ Factory inspector for giving the interpretation.
20th February 2018 From India, Mumbai
Thanks for the reply experts
I would like to know one thing, is it legal to subsititute overtime with comp off, is there any provisions in factories act which provides the method of discharge of overtime and does factories act talks about comp off apart from section 53
Section number and judicial pronounce ment if any will be very much valuable in this regard
20th February 2018 From India, Chennai
Dear Mr Narayanan,
I beg to differ with the interpretation of Mr Mohanty on OT and Comp off.
The relevant provisions lend no different scope other than paying OT at double the rate and no substitution by comp off. We are not discussing right or wrong but what is provided by law.
There is also no question of paying OT for working on weekly off under the provisions except giving substituted off.
Regards,
Vinayak Nagarkar
HR-Consultant
20th February 2018 From India, Mumbai
Dear Mr Vinayak Nagarkar,
Is there any case law or pronouncement in this regard which specifically provide that ot cannot be substituted for comp off, it would be of great help as i will have reference in this regard
Regards
20th February 2018 From India, Chennai
Law clearly says when ot is to be given and when compensatory off is to be given
OT and compensatory off are not comparable in any manner andcthey are no substitute to each other
Question of seeking a court order to this effect is unnecessary. No court will give any judgment in violation
Of clear law on the subject
Owners in bid to save some money try such techniques taking advantage of ignorance of workers
Be careful as answer to violation will be given by HR
20th February 2018 From India, Pune
True Mr Nathrao ,
But i would like to check it from all aspects, In other countries, there is an act called fair labour standards act, which talk about this issue, i would like to know if there is any Indian law in this regard or any other judicial cases in this regard.
20th February 2018 From India, Chennai
Not to my knowledge
Conditions differ country to country
20th February 2018 From India, Pune
I would like to know court judgment which opposes the comp off usage instead of over time.
20th February 2018 From India, Chennai
Dear Friend Narayanan,
Respected Nathrao ji what sir has mentioned in his note #3 is right and it's bottom line we work in India & we have be follow Indian Law in respect of that particular matter and not any other county. And if any organisation is doing so than they have to answer the authority as and when call up to answer and face it .
One more thing I would like to share, when it’s National Holiday or Festival and overtime is paid it will be paid thrice rather than double.
If still there is any question, I would like to suggest you should write to respective LOI,LC of your region and hope he too will say same thing.
Thank you & regards,
20th February 2018 From India, Rohtak
Dear Mr Narayanan,
The legal provisions are crystal clear in this regard. If you are so keen on knowing case law why don't you make some efforts in searching on Google rather than looking fir readymade answers despite experts having given clear opnions and share with us?
Regards,
Vinayak Nagarkar
HR-Consultant
20th February 2018 From India, Mumbai
Basics need to be clear.
Courts interpret law
Courts do not make law
That is task of legislature
When wordings of law are clear like in this case,we just have to follow it
When off is tobe given is laid down
When and how is treated is laid out clearly
Now why look for caselaw to reiterate it
20th February 2018 From India, Pune
Thanks mr nathrao that was helpful
21st February 2018 From India, Chennai
Mr Good HR
Thanks for the reply, it will be of great help if there is any refernce regards to triple rate payment of overtime on national and festival holidays.
21st February 2018 From India, Chennai
Dear Mr Vinayak Nagarkar
Thanks for response.
In my posting clearly mentioned that the Over time to be paid at doubled the rate as per the provision of law. It was as per the line of opinion made by you & Mr. Nathrao.
The OT and Comp Off interpretation was cited on aspect of " Adopted policy of the company", in apprehension of having CSO.
Therefore in my concluding line, I advised the concerned employee to refere the matter to the appropriate authority for interpretation or action.
21st February 2018 From India, Mumbai
""One more thing I would like to share, when it’s National Holiday or Festival and overtime is paid it will be paid thrice rather than double.""
Good_hr
Could you please clarify this statement.
To my knowledge there are three National Holidays-26 Jan, 15 Aug and 02 Oct,
Workers of called for duty need to be paid DOUBLE wages and not triple.
21st February 2018 From India, Pune
Dear Mr Nathrao,
The payment to be paid as per the state rule under the INDUSTRIAL ESTABLISHMENTS (NATIONAL AND FESTIVAL HOLIDAYS) ACT, 1963 where establishment is existing or under Central Rules, as the case may be.
*Central rules speaks to pay : double or substitued with a leave with pay
**Andhra, Odisha,Tamilnadu & Karnataka state pay double or substitued with leave with pay
*** Maharastra,Kerla : doubled the rate along with one leave or thrice the rate
21st February 2018 From India, Mumbai
Dear colleagues,
I think the original query was about OT and Comp. Off under Factories Act/Rules and not about payment for working on National/Festival holidays.
Regards,
Vinayak Nagarkar
HR-Consultant
21st February 2018 From India, Mumbai
The person who started this thread has not given answer to the query raised by Srinath Sai Ram, that under which category the employee belongs to. Obviously, if the employee belongs to a supervisory category employee, there is no legal hurdle to give compensatory off in lieu of double the rate of wages. It is to be noted that in such cases, if the supervisory employee is getting compensatory off, it should be treated as a bonus because section 59 of the Factories Act which speaks about double the rate of wages applies only to workers.
24th February 2018 From India, Kannur
Dear Mr Narayanan, atleast now can you reply for concluding the discussion.The pertinent point here is category of Workman
24th February 2018 From India, New Delhi
In our company GSFC they give compensatory off instade of overtime ,,they do this provision in wage revision under 2 p settlement with Union..Is it possible..
18th June 2018 From India, Anand
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