Overtime Policy Confusion: Should Managers Also Be Eligible for Extra Pay?

Dear All,

In my organization, many workers work for at least 10 hours daily. Now, I have to create an overtime policy. Can anyone tell me if this policy is applicable to all employees or if it is restricted to only workers at lower levels? To be more specific, are managers also eligible for overtime?

Regards,
Pooja Garg

Hi,

For your information, let me clarify that overtime is not applicable to staff categorized as managers. According to labor laws, it is only applicable to employees at lower levels. Overtime is limited to a maximum of 2 hours per day and not exceeding 12 hours per month. The rates for overtime are double the daily wages.

Regards,
Pooja Aggarwal

Under which Act or Rules are we allowed to take overtime from employees/workers for only up to 12 hours in a month?

With Regards,
R.N.Khola

Overtime Policy Implementation

I am working in a limited company covered under the Bombay Shops and Establishment Act. I want to implement an overtime (OT) policy in our organization. From a statutory point of view, please provide the Overtime Policy.

Regards,
PHIPL

Dear Pooja Garg, Jogendra Singh, and Phipl,

Overtime Policy

I. General Policy

Generally speaking, the company authority does not encourage employees to perform overtime work under normal conditions. However, there are always unpredictable events that may interrupt our business operations, such as material shortages, machine shutdowns, or engineering changes. To meet operational schedules or maintenance requirements, the company may request an employee to work beyond the normal daily work period with overtime payment.

II. Overtime Payment

Non-exempt employees are eligible to request overtime payment. The hourly rate for overtime payment is in accordance with the provisions of the Labor Standards Law. Exempt employees are only eligible to request compensation leave after they have performed overtime work.

Non-exempt employees required to work beyond the regular working hours in a day should be granted overtime pay at the hourly rate plus one-third for the first two hours of overtime work, or at the hourly rate plus two-thirds for the second two hours, or at the hourly rate plus twice the number of hours worked after the first four hours.

III. Procedure

Overtime work must be approved by a Department Manager or supervisor using the "Request for Overtime" slip beforehand. The HR Department is responsible for checking the overtime records shown on the Time Cards/Time Records in the computer, calculating the overtime payment employees have earned, and adding the amount to the monthly payroll at the end of each month.

You may correct or add as deemed fit for your organization. Hope the above helps.

Best regards,

John