A much appreciated question, the employee doing OT is due to employers requirement to meet the production need. A proper production and manpower planning will knock off the OT.
From India, Chennai
In our country, generally speaking, the Company authority is not encouraging employees to perform overtime work in normal condition. But there are always some unpredictable matters happened to interrupt our business operation. To meet operational schedules or maintenance requirement, the company could request an employee to work in excess of the normal dally work period with overtime payment.

Overtime Payment (It possible be difference in every country) - :
Non-exempt employees are eligible for requesting overtime payment. The hourly rate of overtime payment is in accordance with the Provisions in the Labor Standards Law. Exempt employees are only eligible for requesting compensation leave after they performed overtime work.

Overtime work must be approved by Department Manager or supervisor by the slip of " Request for Overtime" on beforehand. HR Department is responsible for checking the overtime records showed on the Time Cards/Time Records in computer, calculating the overtime payment which employees earned and put the amount into the monthly payroll at the end of each month.

From China, Shanghai
sometimes it is essential to work on for some extra hours to meet targets. Hence If employees work extra hours, try giving them C-off and not OT. Circulate notice to all the departments in company that OT is replaced by C-Off. It will be economically feasible to your company to give C-Off rater than paying for OT.
Good Luck.

From India, Nagpur
Dear Mr Gore,
Your suggestion to give compensatory off for OT done is against the provisions of FA or Shop Act as is applicable.
The Acts only provide for payment at the double the rate for all OT done.
In fact , this is not the issue before the poster. The issue is OT has become uncontrollable having its control grabbed by workers and how to control or stop it.
Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
Stopping OT is never a one day job.But it is never an impossible one.
First thing the company management should have a strong will towards it.Then details study and analysis should be done one the capaicty of each machinery and manpower.Then the actual achiveable target should be decided.Then compare the product requirement against this actual capacity.Then we can reach at a consensus if the OT is genuinely needed or not.
And incase if there is a requirement of OT,First analyze if its a continuos product requirement or once in a bluemoon requirement. If the requirement is a continues one, think about investing more in machinery and manpower to avoid OT.If its one time requirement you can go for OT.
But to be a successful manufacturing company, the company should have a proper production planning team and fixed and achievable targets.
And the formula,to calculate OT is Gross wages/26 /8 * Number of Overtime Hours*2.

From India, Bengaluru

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