Are Executives Entitled to Overtime Pay Under the Shops and Establishments Act, 1948?

Dear All,

The definition of the term "employee" in Section 2 of the Shops and Establishments Act, 1948 is broad enough to encompass all employees except for members of the employer's family. Does this imply that all executives working in a commercial establishment would be entitled to overtime salary/wages?

Yes, every person employed in the establishment, including executives, is covered under the Bombay Shops Act 1948.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]

My query was more particularly with regard to the eligibility of executives for overtime allowances based on the fact that the Act is applicable to all, other than the employer and members of his family. Now, when it is beyond all doubt that everyone is covered, does it mean all employers, whether in the private sector or public sector, are violating the provision of the Act by not paying overtime allowances to the executives when they are made to work overtime?

I also have a similar query. The definition of "employer" also includes managers. Does this mean that assistant managers, deputy managers, and above are not covered by OT provisions (not entitled to OT) or working hours provisions, as they fall under the definition of "employer" and not into the definition of "employee" under the Punjab Shops and Commercial Establishments Act? Learned members may kindly guide.

Overtime and the Delhi Shops and Establishments Act

Overtime is not admissible under the Shops Acts to those who fall within the purview of the definition of an employer as defined in the Delhi Shops and Establishments Act, or to those who act as an agent of the employer in controlling the affairs of the establishment.

Regards,
B. Saikumar
HR & Labour Law Advisor