PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Industrial Relations And Labour Laws
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Overtime is applicable for WORKER ( means a person employed in any manufacturing process)
The 2 Sections of Factories Act 1948 are relevant:
59. 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
2(l) “worker” means a person [employed, directly or by or through any agency (including a
contractor) with or without the knowledge of the principal employer, whether for remuneration or
not], in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the
manufacturing process, or the subject of the manufacturing process [but does not include any
member of the armed forces of the Union];
Having understood we should also understand that provision under Section 64 which gives power to the respective state Government to declare persons WHO HOLD SUPERVISON (OR) MANAGEMENT OR ARE EMPLOYED IN A CONFIDENTIAL POSITION IN A FACTORY
64. Power to make exempting rules.—(1) The State Government may make rules defining the
persons who hold positions of supervision or management or are employed in a confidential position in a factory [or empowering the Chief Inspector to declare any person, other than a person defined by such rules, as a person holding position of supervision or management or employed in a confidential position in a factory if, in the opinion of the Chief Inspector, such person holds such position or is so employed],and the provisions of this Chapter, other than the provisions of clause (b) of sub-section (1) of section 66 and of the proviso to that sub-section, shall not apply to any person so defined [or declared]: [Provided that any person so defined or declared shall, where the ordinary rate of wages of such person [does not exceed the wage limit specified in sub-section (6) of section 1 of the Payment of Wages Act, 1936 (4 of 1936), as amended from time to time], be entitled to extra wages in respect of overtime work under section 59.]
Hence the " WORKER" (other than Supervisory / Management or confidential positions) are entitled for OVER TIME WAGES as and when they work for more hours than Regular hours of work . Kindly check the Factories Rules of your respective State to check who are all coming under the purview of Supervisory / Management level and then extend the Over Time Wages accordingly. Some argue that every one from Worker to Manager are entitled to over time. But this is the practical interpretation I experimented in Factories as "WORKER” means a person employed in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process.
We also strengthened the Standing Orders defining who are all coming under the category of " WORKER" for more clear Administration of the matters connected there with. You may also get a legal opinion for safer side to convince your Stake Holders and then implement a system without any statutory non-compliance.
Other learned Colleagues may also give their comment for more learning of the Members.
From India, Chennai
Madhu.T.KIf the shift engineers do not have any reportees under them, obviously, they are also eligible for overtime wages. Otherwise, not.
From India, Kannur
KK!HRFactories Inspector counts almost everybody as Worker, irrespective of one's status. In deed unlike the ID Act 1947 which excludes supervisory and managerial employees from Workman definition, Factories Act has an all inclusive definition. For instance in case an officer or manager is injured in an accident in the factory, it has to be reported. So for all practical purposes Factory Occupier and Manager are excluded, all others get the protection provided in the Act. Accordingly I feel the Maintenance Engineers & Shift Engineers too are entitled to OT subject to the conditions laid down.
From India, Mumbai
saswatabanerjeeI think you are talking with reference to sec 64, which talks of persons holding confidential position and who are exempt from certain portions of the factory act. There will be rules pertaining to it which in Maharashtra, for example, is rule 100 to 102.
The rules (in Maharashtra) very clearly state that the are exempt from the limitation of 115 hours of Overtime in a Quarter and number of hours in a single day (subject to conditions) but they are not exempt from being paid overtime. So check the rules in your state and accordingly decide on the matter.
I have not seen any rule that exempts overtime pay, so far.
From India, Mumbai
nanu1953During my whole carrier I have worked only with Factory except one organization where I was in Regional office.
From the above posts it reflects that every body is count as worker by factory directorate and I have also faced the same. At the same time, I have never faced any dispute through out my career where Factory inspector had been raised questions regarding non payment of OT to Management staff after going through the OT register, Attendance register etc.
Many factories have Finance, Marketing/sales, HR, Manufacturing, Maintenance, QC, Purchase/Procurement etc. under one umbrella. In some organization it is demarcated as a portion under S & E Act and rest is under Factories Act. But in majority organizations it is under Factories Act.
If I am not wrong in India for most of the factories the employees are divided in to two category - Bargainable staff and Management staff. Bargainable staff are getting OT and management staff is not. There is always some reportees for management staff. Employees under management category most of the organizations are working beyond working hours and so far my knowledge goes they are not paid OT any where in India.
In the instant case the concerned employees are Shift Engineer and Maintenance Engineer and they are supposed to be management staff where shift workers are reporting to Shift Engineer and Maintenance Fitter, Electrician etc. are reporting to Maintenance Engineer.
From the interpretation of Act it appears that every body within the factory as worker should get OT but the reality is different and at the same time I have never heard any case law or demand by any factory inspector to pay OT to Management staff.
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From India, New Delhi
RatanBhardwajPlease refer all applicable Acts and Rules and apply your own wisdom before taking any decision.
As per my understanding all workman other than managerial and supervisory category, are eligible for OT wages. Hence, I feel the Maintenance Engineers & Shift Engineers are entitled to OT subject to the conditions laid down. Further you can see whether they are acting as supervisor or not before arriving at a decision.
From India, Noida
Ram K NavaratnaRatan Bhardwaj is right. Thanks Ram K Navaratna
From India, Bangalore