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