Seeking Help with Factory Appointment Letters, Overtime Pay, and HR Policies – Any Advice?

Dear All,

I need a sample of an appointment letter format for a factory. Also, if we pay overtime, how is it calculated? Additionally, if someone has an HR policy for a manufacturing unit, I need to know what all goes in it.

What is your company's line of business and secondly manpower strength/turnover? Appointment letters are the same; you can just add/modify a few points depending on work conditions. Overtime is double the normal wages. The rule is a maximum of 50 hours in a quarter, i.e., 3 months.

I am a compliance manager myself. The reality is HR policies/systems depend on the owner/promoters of the company. So, my advice is first to study the existing system and then suggest improvements along with financial/legal implications to the owner. Try to follow labor laws to the maximum.

Surya Vrat Rana

Thank you Surya Vrat Rana,

We are involved in manufacturing surgical instruments, with a total of 25 workers while the remaining are part of the corporate office staff.

I kindly request you to shed more light on overtime or provide guidance on how to calculate it.

Thanks once again for the valuable information.

Normally, it is double the hourly wage rate. However, in certain companies, people may be paid based on per-piece productivity as well. Sometimes, what happens is that workers, in collusion with the immediate supervisor, don't do much work during the daytime. When evening comes, due to buyer deadlines, the management is forced to implement overtime. Another situation arises when the supervisor receives a commission from workers; for example, he may claim that the work is complex or difficult, thus requiring regular extra work hours.

Another trend is when the same worker is on a piece rate during the daytime and daily wages in the evening. In your company, analyze the overtime schedules over the last 1-2 years. If overtime is a regular feature, it may make more sense to introduce a second shift. Additionally, consider incorporating 30% variable pay in production.

Please keep me updated.

Surya
9999645755