Pay for overtime - In what kind of employment/conditions it is applicable, like for factory labourers or it varies with wages/salaries range?

Shweta P.
Hello everybody! I have a query. I want to know if there is any provision for extra pay for overtime?
In what kind of employment/conditions it is applicable, like for factory labourers or it varies with wages/salaries range.
Regards,
Shweta
Ajmal Mirza
Hi Sweta...
Normally the overtime is paid to the person getting wages... and who is not in executive cadre... (the wages are paid according to days / hours and not according to months)
The overtime has to be paid at twice the normal rates...
The normal work week is of 48 hours... In case you have a extra large organisation you can have negotiation with the workers as well as you can consult with Labour officer to come to a break up per day...
e.g.
8 hours x 6 days
9.5 hours x 5 days etc...
This does not apply to executive and managerial level as they are bound to work for 24 hours (Poor executives)
Sadashiv Rao
Hi Shweta,
This is pertaining to the Overtime payment . Firstly this will not apply to the management level employees. Secondly to answer your question on the payment of OT : Yes OT is very much payable to the workers and as per labour law it is 8 hours per day & 48hours total in a week (Mon-Sat) .If the worker is working beyond the time frame then the OT has to be paid depending on the no. of extra hours worked.
Some companies also give holiday allowance for the work done on holidays (depends on the management discretion). This is as far as my knowledge goes since I am a bit out of touch with labour law :oops: but I am sure that a lot of experienced / intellectuals will send in their answers (accurate) which should solve your problem
Regards,
Sadashiv Rao 8)
samvedan
Extra Wages for Overtime work done.

Under Factories Act the relevant provisions are:

1) Work done beyond 9 hours a day or for more than 48 hours in a week qualifies for extra wages for overtime. The hours calculations are for a week.

2) The work must be done inside the factory.

3) The overtime wage is @ twice the normal rate of wage (it means that twice the gross wages)

4) Apart from some procedural compliance the most interesting fact is that no overtime is allowed be done unless exemption from working hours stipulations is obtained and if such an exemption is obtained, then within the norms of exemptions.

5) It is a normal misconception that only workmen are eligible to overtime. Except for the exempted categories u/s Sec. 100 (or the Rule 100?) all other may technically be eligible for Overtime and the definition of a "worker" under Factories Act does not distinguish between categories like the Industrial Disputes Act.

More or less similar provisions exists under the Shops and Commercial Establishments Act.

Always remember that the law stipulates the minimum. If an employer wants do more than that, the law does not prohibit. Practices like single rate overtime payment by agreements ot with compensatory offs etc, are NOT supported by any law.

Finally, since both the acts mentioned here are establishment legislations, the subject of overtime is covered by no other act!

If beyond this you have any specific questions, please feel free to raise!

Best luck

samvedan

October 4, 2005
swastik73
Hi Sweta,
Well as you have already many CiteHr members have given valuable insights, I need not go into the Statutory details, but all I can tell you is this:
1) Always make a provision for getting approval and sanction before allowing Overtime.
2) Always maintain proper information system regarding distribution of Overtime with proper tracking mechanism in place since if not regulated properly can land all of you in deep deep trouble.
Regards,
SC
svsrana
50 hrs in a quarter for indian govt.. you need to apply for permission beforehand.
some retailers in US/ Europe are willing to relax the same till 70hrs in a month
Ganeshhr
Dear All,As far as my knowledge we can differentiate the worker and staff by the nature of work they will perform. Those who are engaged in the production directly doing manual work can be termed as worker and overtime can be paid to them for their extra hours of work. Those who are engaged in the supervisor capacity and above, not directly involved in production can be termed as staff and may not necessary to pay overtime for such people.RegardsGanesh
keshava
Overtime work is carried out depending upon extragencies of work.
it is limited for regular shop employees in factories to a fixed hrs but, essential departments like canteen,security, medical, water, safety and on are exempted from limitations of ot.
The executives can work for ot but, they are provided one day compensatory leave for every 8hrs work they have done as Ot.
regards
Keshava
Richa Gupta1002
hii good afternoon to all..
I just wanted to know some of the practices followed by HR proffessionals, in oder to reduce the Overtime money spent by the company..
Can any one Help me..
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