Are My Understandings of Legal Working Hours and Overtime Rules Correct? Seeking Guidance

Dear Seniors,

Though this topic has been discussed several times in the community, however, I just need a little bit of confirmation that whatever I have grasped is correct. Please check the below-mentioned points:

1) In laws, it says that an employee can work for a maximum of 9 hours per day and 48 hours per week. Both these timings are exclusive of lunch breaks/rest periods. For example, if a company works from 9:30 to 7 pm (5 days working) and gives a 30-minute lunch break, then a net 9 hours of working is correct?

2) Overtime is payable if somebody works for more than these specified 9 working hours or a net 48 working hours per week. For example, if a company works from 9:30 to 6 and gives a 30-minute break, then its net working time is 8 hours. So, even if an employee works until 7 pm daily for a week, then no OT is payable as the total NET WORKING HOURS for the week become only 45? Am I right in this?

3) If in an organization we say our spread over is 10 hours and the timing details are 8:30 am to 6:30 pm, including a 30-minute lunch break and two 15-minute tea breaks, making NET WORKING HOURS AS 9 ONLY, then are we legally right?

4) So, if all the points above are correct, do we need to declare it beforehand only to the inspector who comes for the survey, or can we say this is as per our policy at that point only?

My questions might be lengthy, but please help me by clearing my doubts and making this matter crystal clear to me.

Looking forward to all the seniors' help.

Thanks,
Neha

Dear Neha,

Your points are all reasonable and correct legally, but if you are covered under the Factories Act, then you have to seek approval on Form 11 from the Inspector of Factories.

Thank you, sir. To be very honest, I already expected that only you would answer my queries because you are always there to answer even the simplest questions raised by people like me who are still very new to this profession. Thank you so much for always being so helpful.

We are covered under the Shops and Establishment Act, so do we also need prior approval?

Sir,

Please let me know more about "Overtime Exemption" approval from the Inspector of Factories.

I think the law was genuinely enacted in the interest of laborers who worked under physical stress in manufacturing companies where they work continuously without a break except lunch, which still is applicable across many countries. Companies abroad across different industries such as financial services, IT services also work on a similar model of 8-9 hours, whereas it is not the case in India where we are bound to work more than 10 hours up to 18 hours depending on the role & responsibilities, especially in a bad market.

Plus, the services industry has brought a flexible culture where you are not monitored hourly to check if you are really working. In that case, the management expects everyone to complete the job which was scheduled. I've had the experience of working in London just before the recession started when people who are VPs, Business Heads used to log in from home at 3 AM and work till morning to ensure the IT systems work properly. So, it's not about the number of hours you work, but it's about the task completion. Of course, one gets paid extra as variable pay, bonus, individual performance pay at the end of every month or year, which is basically nothing but overtime payment.

Malik sir,

I am new to the HR profession. I am totally confused with PF. Can you explain one case law to me?

Thank you,
Visya

Dear Srividya,

Welcome to CiteHR. There are lots of threads on PF. Please search the site using the search tool, and you'll get what you want. By the way, do you know the meaning of "case law"? Can you explain what you mean by it?

Thank you.

Dear Neha,

I appreciate the way you sought clarification with full details and instances. It is always good to seek confirmation on what one learns rather than be doubtful forever. Keep learning and acquiring the correct precise facts - that's what makes someone an expert or an authority.

Regards.