Is Extending Office Hours Legal? Seeking Advice on New Timing Rules and Overtime Concerns

Hi,

I have a query regarding the office timing. Actually, we are going to make rules regarding timing and attendance. The management wants to set the timing from 9:30 AM to 7:30 PM with a 1-hour lunch break. I want to know if this is fine according to the law. Currently, in the Head Office, people work until late hours, and there is no overtime system for the staff. So, the management thought that if we extend the working hours, people won't consider overtime and will work until late hours.

Kindly suggest to me what could be a better option in terms of the law. The current timing is from 9:30 AM to 6:30 PM with a half-hour lunch break, but due to many people going outside for lunch, we have to increase the lunch break by 1 hour.

Thank you.

It's wrong. As per industrial law, an employee has to perform 48 hours as a duty in one week. Beyond that, the company has to pay overtime.

Thank you for your response. There is an argument that the Factories Act is applicable to workers in manufacturing but not to employees who work in the head office. I believe there is no law related to employees in the head office. What can I suggest to management to convince them not to increase the timing, as otherwise, people will feel demotivated?

Dear,

For head office employees, please examine the State Shops & Commercial Establishment Act for working hours, spread over, weekly off days, etc. You may also refer to the definition of an employee under this Act for its implementation.

Regards,
R.N.Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Hi Ishita,

Please find attached the Excel sheet for working hours state-wise.

Dear,

As you are planning to increase office timings from 9.30 am to 7.30 pm with a 1-hour lunch break:

9.30 am to 7.30 pm = 10 hours
10 hours - 1 hour (lunch break) = 9 hours

If your state's S & E act has provisions for the spread over more than 10 hours, then you can implement the change. However, please consider those who do not go for lunch outside. I am sure these people will start grumbling and oppose the change. If you do not feel any resistance, proceed with your decision.

In case of any queries, please call.

Inform your management that 8 hours is predefined by the Labor Organization. If they are ready to face jurisdiction, then you can implement your proposal. Tea breaks are also mandatory.

Thank you.

I agree with Mr. Khola that you should first examine the definition of an employee under the Act. If your employees are covered under the definition, then you have to follow the provisions of the law. If they do not fall under the definition of employees, then their working hours will be as per the business requirements.

Regards

Dear,

First of all, you have to decide under which law/act your establishment is covered. Is it under Factories, Shops, and Establishments, etc.? Anyway, working more than 48 hours in a week is on the wrong side of the law. Anything more than 48 hours should be compensated by way of OT or at least by way of Compensatory off (leave on some other day).

However, it has become a practice for many organizations nowadays to work late hours in the name of recession or otherwise. However, such organizations are, for sure, running a risk of being on the wrong side of the law if someone questions.

As an HR person, you should present the factual legal position before the management, explain things to them, and then leave it to their decision!

B. Dakshina Murty

Ishita,

Head Office is covered under the Shops & Establishments Act, which varies from state to state. When it comes to work timings, the Payment of Wages Act states that work timings should be 9 hours a day or 48 hours a week (averaging 8 hours per day). Additionally, any work beyond these timings should be compensated with overtime pay as mandated by law. However, it's a common observation that most Head Offices/Corporate Offices do not adhere to these regulations. It is now up to your management to make the necessary decisions.

Regards

Hi,

Can you please tell me if it's:
1. Five days or six days of working?
2. Manufacturing or non-manufacturing unit?
3. Do ladies work in your organization or not?
4. Does the company provide transport facilities or not?

For ladies, it is very difficult to work and sustain through these long hours. It's almost 9 hours of work after deducting lunch timings. If the office hours extend till 7:30 pm, how will the female employees commute? This aspect needs to be considered before setting any policies. Even if the company provides transport, this factor must be taken into account.

If it's a five-day workweek, then I don't foresee any issues, but extending work until 7:00 pm would be more reasonable than 7:30 pm. The extended hours can be particularly burdensome for employees at the lower levels who bear the brunt of such policies. Overall, this practice is not favorable or recommended. Increased employee turnover could be a potential outcome as employees also need time for their families.

Please suggest to your management to reconsider this matter.

Thank you.

Hi,

Could you please arrange a copy of the State Shop and Commercial Establishment Act or let me know where I can obtain it?

Thank you.

9 hours of working will increase turnover and demotivation. Such long working hours will also decrease the efficiency of the employees. Additionally, it is not in accordance with laws. Think before you act, and please share your final decision.

Hi, here is an answer regarding your query. If you are working in an office concerning overtime, the law is settled that the normal working hours for a day are 9 hours, and in a week, it should not exceed 48 hours. If you work more than the normal working hours, then overtime at the rate of double wages for the time worked should be paid by the employer. Moreover, there is a provision for a spread-over in which the employer can extend working hours to 10 and 1/2 hours in a day, with an additional 1 and 1/2 hours. In this case too, the total working hours of the employee in a week should not go beyond 48 hours. If it exceeds, the extra time worked comes under overtime, and the employee can claim overtime wages double the normal rate of wages for work done in an hour.

Hi,

As per the Shop & Establishment Act, whether it be of any state, I think the general provisions are the same. The working hours for a day are only a maximum of 9 hours with a one-hour lunch break, and for a week, it is 48 hours. If any employee works more than 9 hours in a day and 48 hours in a week, then the employer shall be liable to pay overtime wages that will be double the amount of normal wages. It's a clear position in the law, but these corporate houses or MNCs are not following the laws properly. They think these laws/acts are scrap papers. So, every employee should keep his records of what time he entered and what time he left, and it should be signed by his manager. Then, they can easily claim for overtime through the labour department/labour court.

Sanjay
Advocate