Is It Legal for Employers to Force Overtime? Understanding Labor Laws and Limits

Is it legal for a company/employer to compel any of its employees to work overtime? Also, as per the labor laws of our country, what is the maximum number of hours that an employer can make an employee work per day/week? Could somebody provide answers to the two questions above? I would also appreciate the appropriate references to the pertinent laws. Thank you.

An employee can be asked to work a maximum of 2 hours per day, 12 hours per week, or 50 hours in a quarter. As a job requirement, an employee can be compelled to work overtime. The remuneration for overtime should be paid at a rate double that of the ordinary wage rates.

Regards,

Employee Work Hours and Legal Boundaries

How does this work with a bank, for example, where the management contracts are written in a way that implies the employee has to work as much as it takes to complete his/her tasks? Where can the employee legally draw a line (nights, weekends, etc.) without fear of not being able to complete his/her tasks? What is the limit of free time an employer has to ensure the employee is taking time off? Is there a sort of responsibility on that end?

Many thanks,

Judith

Dear,

Overtime Work Regulations

Maximum an employee can be asked to work is 2 hours per day or 12 hours in a week or 50 hours in a quarter. As a job requirement, an employee can be compelled to work overtime. Remuneration for overtime is to be paid at double the ordinary rates of wages.

Legal Basis for Overtime Rules

Under which act is the rule of 2 hours a day? The 50-hour rule is not under any act but under factory rules in states, at least it is in Maharashtra, Tamil Nadu, Madhya Pradesh, and Karnataka. Are there similar rules in other states? Is there such a rule in the Shop and Establishment Act?

Dear Zippy, Kindly refer to The Factories Act of your state. It states that the maximum working hours per day are 2. To exceed this limit, you must obtain an exemption from the Inspector of Factories and renew the overtime (OT) permission for a period of 3 months. You can directly approach your Inspector of Factories for this. Meanwhile, the rate of wages should be doubled. Please ensure this. Instead of overtime, you can opt for shifts.

Regards,
Ramkishore
Manager-HR

Please let me know which section of the Factory Act states that you can do a maximum of 2 hours of overtime per day. Kindly refer to The Factories Act of your state. It allows for a maximum of 2 hours per day of overtime. You should seek exemption from the inspector of factories and renew the overtime permission for 3 months once. You can approach your inspector of factories directly. In the meantime, the rate of wages should be doubled. Kindly ensure this. Instead of overtime, you can prefer shifts.

Regards,
Ramkishore
Manager-HR

Dear Mr. Saswatabanerjee, The OT exemption I am talking about, I hope this does not come in any section of the Factories Act. It is a permission given by the Director of Factories to conduct OT hours legally. If you get this permission, you can do OT for 2 hours a day. Otherwise, whatever you are doing, even for half an hour, would be illegal.

Regards,
Ramkishore

The question of exemption arises when there is a rule or law that prohibits overtime work. If there is no law against overtime, then there is no need to seek approval from the Director of Factories. Could you please specify which section states that approval from the Director of Factories is required for allowing overtime?

To the best of my knowledge, employers have the legal right to request employees to work overtime without seeking permission from any individual, provided it complies with certain regulations. Currently, the common norm in most states is a maximum of 50 hours of overtime in a quarter. Additionally, working a double shift (8 hours of overtime) is permissible under the Factories Act without the need for permission from anyone. The requirement for permission arises only when the overtime limit specified in the state's factory rules is exceeded.

The overtime rate for national/festival holidays is the same as per payment of overtime under the Factory Act, i.e., twice the rate of earned wage.

Thanks & regards,

Sumit Kumar Saxena

Dear All,

As per the act, overtime (OT) should be 2 hours per day and 12 hours weekly. For a duration of 3 months, it should not exceed 50 hours. The calculations for overtime should be based only on the Gross amount as per the act. Additionally, ESIC deductions will be made on overtime payments.

Thank you.