Does the Factories Act, 1948 Cover Overtime for Staff in a Charitable Hostel's Dining Facility?

Dear All,

An organization being a charitable institution has a tourist hostel with a dining facility for their guests, i.e., a dining hall where they provide lunch or dinner. All the food is cooked in the kitchen over there.

Would the Factories Act, 1948 be applicable for the payment of overtime to employees working in that division? If not, then which act would be applicable for the payment of overtime?

Please help me out as soon as possible.

Regards,
Praveen

Depending upon the business being transacted, the Tourist Hotel may be covered under either the Shops and Establishments Act or the Factories Act. It is immaterial if the firm is registered as a charitable institution. The objective of hotel operation shall only be deemed as profit-making. Therefore, overtime wages shall have to be paid to the employees employed in the hotel.

Regards,
Madhu.T.K

Dear Parveen,

According to your version, you are to be covered under the State Shops Act. Please apply for Shop Act registration to the area Shop Inspector. Overtime payment is also to be given as per this Act.

Regards,

R.N. Khola
Sr. Associate
Skylark Associates, Gurgaon

Charitable Work and Minimum Wages

For charitable work, no wages are paid, and hence there is no question of any minimum wages. However, if the charitable institution is running a business and the kind of activity is included as a scheduled employment under the Minimum Wages Act, then you will have to follow that.

Laboratory Classification and Applicable Acts

A laboratory is not carrying out any manufacturing process and, therefore, will not fall under a Factory but will be covered by the Shops and Commercial Establishments Act.

Regards,
Madhu.T.K

As per the Labour Act, the employer must pay for overtime. My question is: Is it applicable only to workers, or does it also cover management roles? By management, I am referring to those at the junior level.

Thank you,

Parmod