Hr madurai
Dear All, It is possible that OT could been considered as compensation leave? It is a fair practice and lawful in factory act?
From India, Coimbatore
Management Consultancy
Hr Madurai
Hr Executive
+1 Other

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The Factories Act 1948 mentions compensatory holiday and OT as distinct and separate. (Section 53 & 59 respectively).
As regards compensatory leave for having worked beyond 48 hours in a week (attracting OT provision as per the Factories Act), there is no provision in the Act to pay compensatory leave and meet the legal requirement. However, there is a judgement of AP High Court which says that one cannot have both compensatory leave and OT payment. Using this judgement I had defended certain matters before the labour officials on why OT is not paid for work in excess of 48 hours and only compensatory holiday is given.

From India, Mumbai


Working hours are prescribed as maximum 48 hours in a week of 7 days, including weekly holiday. Again it need not be 8 hours every day. Maximum in a day a worker can work for maximum 9 hours with spreadover of 11 hours. Some other day he may work less. Total hours in a week if exceed 48 then for excess hours than 48 he is to be paid overtime wages. That is why some companies have 5 day or 5.1/2 day week.

A fall out of this is that when a worker works for 9 hours a day and less on some other day, it is compensation. If the worker works for 9 hours for 6 days, it comes to 54 hours in a week. This means 6 hours overtime.

But there is another provision of compensatory holidays where one can work 0n a weekly holiday but he has to be given compensatory holiday on a day either 3 days prior or 3 days later so as to ensure that he does not work for more than 10 days at a time.

This means what is mentioned in para 2 above, management can either give him overtime wage for 6 hours or give him compensatory off for 6 hours within 3 days later. If management has work of a such a nature that 'some days there is work, some days there is less work or no work. In these cases this kind of compensation is useful. Even workers will prefer it because he can have off on the day when he has personal work.

This is fexibility of work.

Vibhakar Ramtirthkar. Pune.

From India, Pune

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