Over Time Polocy For Staff And Above

n_rjuna
Dear All,
i have a query about overtime-is it compulsory to give overtime to employees.Actually am working Thai based manufacturing company, now am going to prepare Overtime Polocy for company, as per Thailand unit.
There staffs and above employees are getting overtime wage on basic 1.5 etra, and labour double.
As per Indian labour laws i have not seen 1.5 wage, for staffs and above grades if i continue the same in india what will be the problems i will get in future, and is this advisable in india.
Please seniors help me on overtime polocy.
Best regards
NAG
8088038389
bhavesh.kalal
Dear Mr. Nag,
As per factory act overtime is dubble rate per hour than normal rate per hour. if you will follow than you will not find the problem in the Future.
With Warm Regard
Bhavesh Kalal
varghesemathew
As per Indian Factories Act all 'workers' whether staff or others are to be paid double wages for their work exceeding 9 hrs a day or 48 hrs a week.
Varghese Mathew
Madhu.T.K
No law has restricted payment of over time wages to staff though many labour laws have encouraged payment for over time work by making it mandatory on the part of management. However, it is always desirable to make it applicable to those categories of employees, whether shop floor workers or staff, whose work can be quantified at the end of the day. Other wise what will happen is that staff who are generally not guided by a fixed time limit or who are not having any measurable or quantifiable tasks will stay back even without any work and claim overtime.

Though the very purpose of overtime wages payment is to restrict employment of workmen after a prescribed hours of work, say 9 hours or 8 hours, the same should not be used as a means to earn money. In my opinion, staff members do get enough breaks within their official hours, they have more flexibility in operation, they get time for relaxation or their overstaying a tea or lunch is not objected. At the same time, workers will not get any such privileges but are constantly watched by their supervisors. There can be exception but it should be deemed to be due to the wrong policies of the management.

Therefore for staff categories of employees it is not advisable to give overtime payments. Certainly, if they have to stay back for completing audit or stock taking, naturally, some amount calculated based on the hours additionally spent shall be given to them.

Madhu.T.K
varghesemathew
I fully agree with Mr. Madhu .But there are ways under proper supervision to evaluate the quantum of work of staff,but may not be in absolute units as that of production staff.Even in manufacturing it is not possible to correctly measure work in R&D related factories especially in aerospace.
There is a notion that staff(clerical) are not workers.But Supreme Court in Central Railway Workshop's case held that time keepers are workers.
Varghese Mathew
Gandhimba@11
Dear Sir,
In our company we are following giving payment to staffs if they continued above prescribed hour in the name of Allowance. Depending upon the cadre (like Assistant, Executive, Sr. Executive) we have fixed the amount.
Gandhimba@11
The Allowance is not given along with the salary, seperately we are giving. So need not worry about ESI, PF.
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