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Anonymous
2

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.

From India, Chennai
Srinath Sai Ram
609

Dear Narayanan, you have not mentioned your Designation/Nature of Duties Performed, Details about your Establishment/Factory
From India, New Delhi
nathrao
3131

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.

From India, Pune
Nagarkar Vinayak L
617

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

From India, Mumbai
PRABHAT RANJAN MOHANTY
581

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.

From India, Mumbai
narayanan O7
2

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

From India, Chennai
Nagarkar Vinayak L
617

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

From India, Mumbai
narayanan O7
2

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

From India, Chennai
nathrao
3131

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

From India, Pune
narayanan O7
2

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.

From India, Chennai
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