Why Aren't IT Employees Getting Overtime Pay for Their Long Work Hours?

Hi All,

IT employees are supposed to work 9.5 hours per day for 5 days a week, i.e., 47.5 hours per week. My question is, why are they not paid overtime salary for the extra hours worked during a week? Are IT companies not covered under the Overtime Wage Act?

Regards,
Sasmita

[Link: timepassguide.com]

I didn't come across any overtime wage act. Generally, overtime will appear in the Factories Act of 1948. There is a limitation of 48 hours of work in a week (6 * 8 = 48 hrs). For IT companies, it is a 5-day week (5 * 9.5 = 47.5 hrs), whereas a factory refers to a place where the manufacturing process is taking place with the aid of power or without the aid of power.

(i) However, in IT companies where the manufacturing process does not take place, they come under the Shops and Establishment Act, which differs from state to state.

(ii) Some of the Special Economic Zones (SEZs) in India have labor laws not applicable to the incorporated industries within that purview.

(iii) It is also influenced by the IT policy of the government from state to state. Generally, in a factory, after 6 PM, no women will work as per the Factories Act of 1948. But in the IT sector, they work night shifts as well.

Thanks & Regards

naresh.doddapaneni@gmail.com

Overtime pay may typically be in the form of on-call/on-site allowance that specifies an extra payment to employees working overtime, on holidays, vacation, etc. For overtime, it is usually paid by the hour or in blocks of some specific hours (say 4, 6, etc.) though different companies may have differential pay systems for overtime.

One person should work 48 hours weekly, depending on the company policy of either 6 days or 7 days. However, many companies work 6 days a week with daily 9-hour shifts, totaling 54 hours a week. Additionally, numerous employees work daily for a minimum of 11 to 12 hours without receiving any extra pay.

Thank you for the opportunity to review your text and make corrections.

I would recommend that you read various Acts (Central and state) and Rules made thereunder for a better understanding of the law and its provisions. No company is allowed to ask people to work for 7 days a week except in certain circumstances narrated in those Acts and Rules.

With vague questions, it will be difficult to answer them. Normally, a 9-hour shift includes a break for lunch, which is excluded from the count of 48 hours.

Most companies already have the process in place. Typically, in order to avail of the same, the employee would have to apply for overtime/holiday support payments and obtain approval from HR/Manager/Finance or anyone else applicable. The same will then be processed in the following month's payroll cycle and reimbursed to the employee.

Hope this answers your question.

Regards,
Joshua