“No employee is supposed to work for more than 48 hours in a week and 9 hours in a day. Any employee who works for more than this period is eligible for overtime remuneration prescribed as twice the amount of ordinary wages.”
Additionally, Section 14 of the Minimum Wages Act, 1948 states,
“When the minimum wages of an employee are fixed for a particular period of time and the employee works beyond that period, then the employee has to be paid overtime wages for the extra time.”
Every State in India has its own Shops and Establishment Act (SEA) which also lays down overtime rules for workmen employed in different institutions. The SEA is applicable to all in managerial and non-managerial employment, in every shop and establishment.
The overtime rules also state that the employees must be provided at least one break for half an hour between the working hours and the entire working period per day must be calculated in such a way that no working period exceeds 5 hours without an interval.
The total number of labour law working hours India in a day must be 12 and a half hours, limiting the maximum number of overtime hours in a day at 2 hours.
Overtime rules under the Factories Act, 1948 also provides the punishment in case an employer violates these provisions.
Any employer found to be contravening these provisions would be liable for punishment of imprisonment up to 2 years, fine of up to Rs. 1 lakh or both. If the employer continues to violate the provisions after conviction, a fine of Rs. 1000 per day is levied for each day of violation.
Under the overtime payment rules in India, overtime wages are paid in two ways – either on a per hour rate or a per piece rate in factories.
• In per hour or hourly rate, the per hour wage of an employee is calculated and double the amount is paid for every extra working hour.
• In per piece method, an employee is paid overtime for every extra piece made during the overtime period.