How Should I Calculate Overtime for Drivers with Late Arrivals and Extended Hours?

Overtime Wage Calculation for Drivers

I need assistance regarding the overtime wage calculation for drivers. Here we have a strategy that involves charging a penalty for latecomers. The working hours are from 9 am to 6 pm, with a lunch break from 1 pm to 2 pm. Anyone arriving after 9:10 am is considered late.

My question is, on what basis should I calculate the overtime for an employee who arrives at 9:45 am and leaves at 7:40 pm?

Regards,
Thirumeni Selvam J

An employee/workman is entitled to overtime (O.T) if he works for more than 48 hours per week. Keep aside the punctuality issue for some time. Irrespective of the time at which he reports for duty or leaves his workplace, find out how many hours of work he is putting in at the workplace in total per week. If it exceeds 48 hours per week, he is entitled to O.T.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

An employee is entitled to OT if he/she works for more than 48 hours in a week, and it has nothing to do with late coming or punctuality. Late coming is treated as indiscipline in your company; it is a matter related to your company only and has nothing to do with the Factories Act.

Late Coming Rules and Penalties

However, suppose your company has any late coming rule like this (I don't know how much it is legally viable):

- Late coming (up to 1 hour) - fine of Rs. 10 or any
- Late coming (more than 1 hour up to 2 hours) - fine Rs. 20

In that case, you may deduct the amount accordingly from his/her salary, keeping in mind the provisions laid down under the Payment of Wages Act and Minimum Wages Act. However, the calculation of the total OT amount payable has to be done as per the rules under the Factories Act.

Thanks & Regards,
Jawed Alam