How Should Overtime Be Handled for Staff Working Over 9 Hours in Construction?

monikahr
Dear all,

I want to know about the overtime procedure for the construction company. What are the policies for implementing overtime? Generally, in my company, there are 9 hours for duty. However, our office boys, housekeeping staff, accounts executives, and cashiers often work more than 9 hours. What overtime should we give them?

I will be really thankful to everyone if anybody provides the answers. Waiting for your response.

Thanks and Regards,
Monika
Basant
Dear Monikahr

Industrial employees are entitled to additional payment for work done

beyond the normal working hours. There are two sets of rules applicable for overtime payment viz. (i) Departmental Rules and (ii) The Factories Act.

For work beyond normal working hours and upto 9 hrs. a day or beyond 44.75 hrs upto 48 hrs in a week, overtime is paid under departmental rules which is known as DOT.

For work done beyond 9 hrs. a day or 48 hrs a week, payment is admissible at twice the rate of pay plus all allowances under the Factories Act (often loosely termed as OT Bonus).

OVER TIME PAYMENTS UNDER DEPARTMENTAL RULES (DOT)

In the case of Day Workers, the overtime is paid at the rate of Basic Pay + Dearness Allowances + City Compensatory Allowance + Personal Pay + Special Pay +Pension to the extent as applicable, divided by 200 for each hour of overtime worked.

The hourly rate is the same for the work done both in Day & Night Shift.

In the case of Piece Workers, again there are two sets of rules for DOT.

It is calculated @ Basic Pay (alone)/200 per hour in the day shift. For working in the night shift, an additional element known as Night Shift Bonus is also added.

This is calculated

for half an hour for each hour of overtime worked under departmental rules @ (Basic Pay + Dearness Allowances + City Compensatory Allowance)/200.

OVER TIME PAYMENTS UNDER THE FACTORIES ACT, 1948

For work done, beyond 9 hrs. a day or 48 hrs a week, there are two sets of rules –one for the Day Worker and the other for the Piece Worker.

Day Worker: Hourly rate of payment which are applicable equally in the day shift as well in the night shift is calculated at the rate = twice the pay & allowances/200.

Piece Worker: Hourly rate of payment in the day shift is calculated at the rate = twice the pay & allowances/200. In the night shift, the same becomes = (twice the pay + pay/4 +

allowances)/200.

Hope it will be helpful.

regard

basant
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