Is It Mandatory to Inform the Factory Inspector About Overtime in Manufacturing?

Dear Sir,

When any manufacturing factory does overtime (OT) for workers, is it mandatory to inform or seek permission from the Factory Inspector? Please advise on the legality of this.

Regards,
Prakash

Yes, it is mandatory to inform the labor inspector, and you have to maintain the register for that.

Hope this information will help you.

No intimation required, but OT has quarterly limit under the Factory Act. Please check. No labor inspector concerned about OT. Only we have to pay double the rate of normal pay.

Hello,

The Factories Act requires that not more than 48 hours of work can be obtained from the workers. However, due to the exigencies of business, the law recognizes that sometimes extra work may be necessary. This extra work is called "Overtime." This clearly means that Overtime is the work done over and above 48 hours in a week.

The Act, therefore, provides that the Manager/Occupier under the Factories applies and obtains relaxation from working hours imposed by the act, and if the request is granted by the factory Inspectorate of the area, then the work obtained within the relaxation granted is termed "Overtime" and is required to be compensated at twice the normal rate of wages.

Kindly study Sections 59 to 64 of the Factories Act to get a clear picture of the provisions.

There are certain positions in the factory that are exempted from working hours restrictions if these are duly notified. (Sec 100 or 101 or 102)

In fact, the factory inspectorate has EVERY jurisdiction in the matter of the implementation of the various provisions of the act to proceed against the Factory for violation of the Act in any way that includes Overtime carried out without express prior permission from the Factory Inspectorate and within the limits approved.

However, rampant Overtime is done in most factories with impunity, and until such time the workers do not complain and/or until the Factory Inspector of the area does not look into this aspect, particularly at the time of routine inspection or otherwise, the matter (illegality) goes unnoticed and many of us tend to feel that doing OT without permission is no illegality anyway. In fact, many of us are not even aware that permission needs to be taken, and that is the sorry part of the function as of today!

Even if there are agreements/contracts signed between the company and Unions that OT may be carried out, such contracts are void ab initio!

I trust your query is adequately answered, if not ask further questions.

Regards,
Samvedan
February 22, 2009

Dear Sir,

Thank you for your email. If the OT register is maintained and wages are also given as per Section 59 of the Factory Act, is it still mandatory to obtain permission from the Factory Inspector? Please advise, as Sections 59-64 do not provide clarity on the necessity of seeking permission from the concerned Inspector.

I kindly request clarification on this matter.

Regards and thanks,
Prakash

Hello,

As I mentioned in the earlier email, there is NO provision in the Factories Act for any authority to grant you permission to do OT - not even the Factory Inspector!!!

Under Sec. 59 onwards, what you receive is "relaxation of working hours" beyond the normal 48 hours/week to a higher level as may be permitted in the sanctioned relaxation limit. The work done beyond 48 hours and below the sanctioned relaxation is called "Overtime," and when OT is done in such a case, the maintenance of registers, etc., becomes mandatory. The relaxation granted from working hours is commonly called the "permission" to do OT.

Therefore, no OT is possible in the absence of "relaxation of working hours," and work done during the period of relaxation of working hours qualifies to be termed as OT. Permission in that sense is necessary!

Any further questions?

Regards,

Samvedan

February 25, 2009