Struggling with Arrear Payments: Can Overtime Be Paid Retroactively on Enhanced Wages?

Hi everyone,

Please help me! I am having trouble calculating arrear payments for around 2000 workers due to a settlement with retrospective effect. Can overtime payment be paid on enhanced wages with retrospective effect? There is nothing mentioned about overtime payment with retrospective effect in the agreement. However, "ARREAR PAYMENT IS TO BE PAID WITH EFFECT FROM 01.01.07" is mentioned in the agreement.

Jawed Alam

Arrears payment should include arrears of overtime wages also. It is implied that arrears mean the difference between the actually paid and accrued amount or the amount which should have been paid had the settlement taken place at the right time. Therefore, wef 1-1-07, you have to calculate the salary, and the difference should be paid.

Regards,
Madhu.T.K

Thank you, Madhu.T.K, but I have heard (no documental proof) that the OT chapter cannot be reopened in case of an agreement where nothing is strictly mentioned regarding the payment of arrears for OT. Is it correct or false?

Regards,
Jawed

There is always a settlement period, for example, for a period of 3 years. If the settlement expires tomorrow and the settlement is successful only after a period of 8 months from tomorrow, then all arrears have to be paid for the complete 8 months based on the revised wages. If you need any help in calculation, use the Excel sheet. If you require a specific format, do let me know.