Is It Legal to Switch to a 5-Day Workweek and Close a Shift in Manufacturing?

Hi all,

My factory (Manufacturing Unit) is situated in Maharashtra. Currently, we are working 6 days a week across three shifts. However, due to a decrease in orders, my management is considering switching to a 5-day workweek and closing one shift, specifically the 1st & 3rd shifts.

My query is whether this change is legally permissible. Will reducing the workweek to 5 days necessitate a deduction in workers' wages for the lost day? Additionally, is it permissible by the government to operate only the 1st and night shifts?

Please reply as soon as possible.

Raj

Hi Raj,

I guess it all depends on the assignments or orders your company receives. So, there is nothing wrong in a change of shifts. If they have reduced one working day, that means you are in a loss of pay for that one day. Yes, you have to deduct the wages (that is why they cut that one day also).

Hi Ash,

Thank you for your reply, but will it be allowed by the Labour Department? What are the procedures I have to follow? Do I have to get the approval of the Labour Inspector?

Dear Mr. Raj,

The answer to your question is a big NO. You cannot pay less for something that is not the fault of the employee. Please do not follow such unethical and illegal HR practices. The decision to work for one day less and in two shifts is a decision taken by the company to reduce costs, but it cannot be done at the expense of an employee's salary. It is a management prerogative as to how he should run his factory, and it has to be done in a manner that does not hurt the well-being of the employees. If the factory inspector comes to know about it, you could land in big trouble.

Regards

Hello Raj,

Both Asha and Awvik are right. The trick is to find a way that's okay for both the employer and employees. There are 2 issues that you mentioned - the one day off and shift changes. Given the overall power scenario in the country, try to figure out the days that could justify the day off on a day when you have more drastic power cuts. I think you should be able to handle the labour department with this logic... at least it works in Andhra Pradesh. But regarding deducting the salaries for this day, legally you can only if the employees are on daily wages - so 'no work, no pay' policy that would be legally tenable. But I will suggest you consult your Company Advocate before going ahead - finally it will be his baby, as usually is the case.

Coming to the change of shifts, first of all, please clarify why do you want to opt for I and III shifts... usually it is 2 continuous shifts.

Regards,
TS

More saheb.

Mi kay mhantoy tey ayika.

You can do this, and many companies are doing it. If you're paying it in CTC system, you can go ahead with reducing the variable components like conveyance, etc. For this, you need not inform the labor authorities.

But if it is not on a CTC basis and if you want to cut the salaries, then you have to be careful. You can take employees into confidence, maybe even in writing. If the employees are willing to do this, then no problem. Alternatively, you can mark them as absent for those days (one day).

If you have a good contact with the labor authorities, they will guide you in this situation. You are not doing anything wrong. Due to a lack of orders and business, companies are closing down. Instead of that, cutting the existing running cost is always better. :-D

Regards,

Rajeev Dixit
(09901436213)

Hi Rajeev,

Thank you for your reply. The fact is, I do not have many orders on hand. In addition, our company is a 100% Export Oriented Unit (EOU), and currently, the market conditions are uncertain regarding whether we will receive more orders. In light of this, management is planning to address the situation.

You have not mentioned anything about shifts. Can you suggest something?

Raj