Dear All,
I am in the process of framing an overtime policy in accordance with the Bombay Shop & Establishment Act. Our team includes several support staff and draftsmen who hold qualifications such as ITI, NCTVT, etc., and are responsible for the design aspect of our projects.
I would appreciate your insights on the following questions:
1) To which types of employees does overtime apply? Is it applicable only to blue-collar workers?
2) Given their technical qualifications, are our draftsmen eligible for overtime pay?
3) Is there a salary threshold for overtime, akin to PF (Rs. 15,000)?
4) Are there any restrictions on the maximum number of overtime hours an employee can work each month?
If anyone has an existing policy that addresses these points, your sharing would be highly appreciated. Alternatively, I would be thankful for your responses to the above queries.
Thank you.
From India, Pune
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2I am in the process of framing an overtime policy in accordance with the Bombay Shop & Establishment Act. Our team includes several support staff and draftsmen who hold qualifications such as ITI, NCTVT, etc., and are responsible for the design aspect of our projects.
I would appreciate your insights on the following questions:
1) To which types of employees does overtime apply? Is it applicable only to blue-collar workers?
2) Given their technical qualifications, are our draftsmen eligible for overtime pay?
3) Is there a salary threshold for overtime, akin to PF (Rs. 15,000)?
4) Are there any restrictions on the maximum number of overtime hours an employee can work each month?
If anyone has an existing policy that addresses these points, your sharing would be highly appreciated. Alternatively, I would be thankful for your responses to the above queries.
Thank you.
From India, Pune
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Under the Bombay Shop & Establishment Act, overtime policies have been well stipulated. Here are the answers to your questions:
1) Eligibility for Overtime: As per the Bombay Shops and Establishment Act, every employee, whether blue-collar or white-collar, is eligible for overtime if they work beyond the stipulated working hours, which is 9 hours a day or 48 hours a week.
2) Overtime for Draftsmen: Your draftsmen, regardless of their technical qualifications, are entitled to overtime pay if they work beyond the regular working hours.
3) Salary Limit for Overtime: There is no salary limit for overtime under the Bombay Shops and Establishment Act. The overtime rate is typically twice the regular wage rate, irrespective of the employee's salary.
4) Maximum Overtime Hours: The Act caps the number of overtime hours at 10 hours in any week. In other words, the total working hours, including overtime, should not exceed 60 hours in a week.
Please note that all overtime should be voluntary, and employees have the right to refuse to work overtime. Also, remember to maintain proper records of all overtime work as per the Act's requirements.
While creating your overtime policy, ensure it aligns with these guidelines. Involve your employees in the process and clearly communicate the policy to them. This will help in creating a fair and transparent system.
Please consult with a local labor law expert or attorney to ensure full compliance with the Act and other related laws. This response should not be taken as legal advice but as general guidance based on the Bombay Shops and Establishment Act.
From India, Gurugram
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1) Eligibility for Overtime: As per the Bombay Shops and Establishment Act, every employee, whether blue-collar or white-collar, is eligible for overtime if they work beyond the stipulated working hours, which is 9 hours a day or 48 hours a week.
2) Overtime for Draftsmen: Your draftsmen, regardless of their technical qualifications, are entitled to overtime pay if they work beyond the regular working hours.
3) Salary Limit for Overtime: There is no salary limit for overtime under the Bombay Shops and Establishment Act. The overtime rate is typically twice the regular wage rate, irrespective of the employee's salary.
4) Maximum Overtime Hours: The Act caps the number of overtime hours at 10 hours in any week. In other words, the total working hours, including overtime, should not exceed 60 hours in a week.
Please note that all overtime should be voluntary, and employees have the right to refuse to work overtime. Also, remember to maintain proper records of all overtime work as per the Act's requirements.
While creating your overtime policy, ensure it aligns with these guidelines. Involve your employees in the process and clearly communicate the policy to them. This will help in creating a fair and transparent system.
Please consult with a local labor law expert or attorney to ensure full compliance with the Act and other related laws. This response should not be taken as legal advice but as general guidance based on the Bombay Shops and Establishment Act.
From India, Gurugram
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The rules under Bombay Shop & ;Establishment Act is enough, no need to frame a separate policy for over time. The overtime is an option to manage a situational demand of extra working beyond normal working hours in case of exigency & emergency. The draftsman are under workmen category and other workman staff can be put in overtime. But you need to think compensation package for supervisor and managers required to work beyond normal working hours. Don't give or create an impression that demand OT as a matter of rights. Make a survey within to understand the cost comparision against the requirements of new additional manpower or shift diversion. You're the right person to judge, whether the things can be managed by OT or requirements of extra manpower.
From India, Mumbai
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From India, Mumbai
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Every person other than a manager will be eligible for over time in an Office.
Manager must be in terms of his work and not just in designation.
What is considered is that to be a manager in reality, he must be mostly doing supervision work, and have control over subordinates, including approval over their leave, scope of work, over time (hours), etc
In Maharastra, there is an unofficial rule that Managers can not exceed 5% of total workforce.
you can always dispute it in court since it is not in any act or rules, we tell clients not to create a situation where they have to go to court in the first place.
Now you have to take a look at your policy based on all these factors.
And yes, take into account as Mr. Mohanty says, what the rest of the industry is doing.
If you need to retain your people, your offering can not be less than industry standards
From India, Mumbai
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Manager must be in terms of his work and not just in designation.
What is considered is that to be a manager in reality, he must be mostly doing supervision work, and have control over subordinates, including approval over their leave, scope of work, over time (hours), etc
In Maharastra, there is an unofficial rule that Managers can not exceed 5% of total workforce.
you can always dispute it in court since it is not in any act or rules, we tell clients not to create a situation where they have to go to court in the first place.
Now you have to take a look at your policy based on all these factors.
And yes, take into account as Mr. Mohanty says, what the rest of the industry is doing.
If you need to retain your people, your offering can not be less than industry standards
From India, Mumbai
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(Fact Checked)-Your response is accurate. Managers' eligibility for overtime depends on their actual duties, not just their title. Also, it's wise to align policies with industry norms. Good job! (1 Acknowledge point)