Are We Entitled to Overtime Pay for Working 80-85 Hours a Week in an MNC?

Hello, my dear friends,

I work in a company (MNC) where there is a policy of not paying overtime. However, there are some teams that work 15 hours a day and also come in on holidays and Saturdays (we follow a 5-day week). What I wanted to know is...

- Under what category does an MNC fall, Factories Act, or Shop Establishment Act?
- Does the company have to pay us overtime as we work at least 80-85 hours a week?

Hi Pooja,

The Factories Act applies to manufacturing units. So, if your MNC is a manufacturing unit, the Factories Act will apply. For everything else, it would be the Shops and Establishments Act. The company's overtime policy would be outlined in the Standing Orders of the company. As per Indian laws, you are only required to work 48 hours a week, or a maximum of 60 hours with breaks. If you are working more than that, you are definitely entitled to overtime.

Check what your appointment letter states in terms of working hours and payment for overtime. If there is no clause for overtime and no compulsion to work extra, you can refuse to put in the extra hours. However, this is as per company policy, and no labor officer ever checks whether MNC companies are following the laws or not. So chances are, you will not be getting your overtime.

Regards,
Gaurang

Dear Gaurang,

The appointment letter states that the working hours are 10 am to 6 pm from Monday to Friday. The MNC that I work for is not a manufacturing unit. It has more than 5000 employees in the major continents and 5 offices in India.

What is a labor officer? Do they have one for each state? Does this mean our team members can get overtime?

Can an Indian company ask its employees not to make plans on weekends/holidays so that employees can go to the office and work (without pay)?

Can you please inform me which Govt organization looks into this?

Extra pay or no extra pay, it has become very hard as late working hours are affecting my health. I do understand that 3-4 hours a day could be required sometimes in a month, but every day it can take a toll not only on health but also on other activities such as going to the bank for a house loan as even on weekends they have asked me to work.

Some friends tell me that most white-collar industries in India have the same problem.

Your help would be really appreciated.

Hi Pooja,

I am glad that you started this topic, but unsure whether you would be able to do anything about it.

Working overtime has become a perennial problem in all private companies today. But really, it is not the company's fault; rather, the culture that we have ourselves to blame for. For example, in my office, all my colleagues will waste their whole day but start working after 3 or 4 pm since they need to show the management the workload they have or the hard work they are putting in. Anyone leaving early on a daily basis is highlighted through office gossip. Those who leave early are usually called by their bosses and spoken to.

By mentioning this, I am not saying that everybody is working late for the wrong reasons; there are genuine reasons as well. But late sittings have become a norm in our culture. With a shortage of jobs and availability of manpower, no one wants to question anybody.

And by the way, most companies do not give overtime, since you are working late on your own.

Dear Tej, this situation is similar to my office. Since we service clients, we receive work at 6 pm in the evening and are expected to complete it the next morning. The problem is that the work can take 12 hours to complete. I think that realistic timelines should be given. I know this is the case in most workplaces in India.

But I also know that there are laws to protect employees from exploitation.

Who should I approach? I do not want to take the legal route per se. Who can a white-collar employee report to in India?

Is the company law board or are there labor officers? Can I send them an email? Thanks, any help would be really appreciated.

Dear Pooja,

Over time, wages applicable to persons which attract workmen's definition as defined in the Factories Act & Rules, if it is a manufacturing unit, I'm not clear what your organization actually is. When checking with the Minimum Wages Act, there it states double the payment of wages for overtime which extends normal working hours (8 hours in a day exclusive of intervals for lunch & tea breaks). I hope your organization works only on general shifts (10 am to 6 pm). If it works only on general shift, kindly schedule timings in such a way that it should be a maximum of 10 hours (2 hours for lunch, tea, coffee breaks, etc., and eight hours of work) and display the same on the premises of our establishment so that your problem will get resolved.

If you are working on a shift basis, please call me to provide detailed information.

+91 9629488214

Dear Roopapavan,

We are not working in shifts. Ours is a proper 9-6 job in the general shift.
I would now like to know if I can complain somewhere. Which labor officer should I complain to? Is there any other labor organization where I can report my company and the industry as a whole? I feel that I am being exploited.

As you said, your company is AMC and not in the manufacturing industry; hence, you have to follow the Shops and Establishment rules. Even though you are working 5 days a week from 10 am to 6 pm, your total working hours are less than 48 hours. Therefore, you are following the rules of office hours. Overtime rules depend on a company-to-company basis. If your policy states no overtime for any particular grade, you have to follow the company policy accordingly.

Regards,
Suchita Bangera

Understanding Workman Classification and Legal Recourse

Please be guided that working hours, as mentioned in the above replies, are enforceable by Labour Authorities only if you fall into the workman category. The definition of a workman is very broad. The Supreme Court, in one of its judgments, has ruled that airline pilots are considered workmen, notwithstanding that they are drawing huge salaries!

- While deciding if an employee is a workman or not, the decisive factor is the nature of duties, irrespective of managerial designation or handsome salary.
- An employee with the designation of District Manager, discharging functions of sales promotion, having authority only to recommend the leave application of other employees, not having authority to sanction the leaves, to appoint, promote, or take disciplinary action, or exercising independent decision-making power, has been held to be a workman.

So, if you are seriously considering complaining to Labour Authorities, you have to be sure that you fall into the workman category. If you are in a managerial category, the only other legal recourse you have is to file a civil suit for exploitation by your employer. The other option is to resign and work for a more professional company that cares about the work-life balance of its employees.

Regards,
Anil Raina
[Phone Number Removed For Privacy-Reasons]