Can Lunch Hour Be Counted as Overtime for Contract Workers? Seeking Advice

Can we calculate the lunch hour as overtime if any contract labor performs a job during that hour and takes lunch after completing the job? Please suggest.

As I believe that your organization is covered under the Shops & Establishments Act, and as per the said act, working hours cannot be extended continuously for more than 5 hours. Every 5 hours, you need to give a break of at least 1 hour. Treating lunchtime as overtime can lead to the exploitation of statutory law as well as employees' health.

For more details, you may check the Shops & Establishments Act or Factory Act, whichever is applicable to your organization.

Treating lunchtime as overtime can lead to the exploitation of statutory law as well as employees' health. It is also a compliance violation. On the other hand, you can adjust the lunch hour time.

Dear Tushar, Need your view on the calculation of overtime under the Bombay Shop Act, as per Sections 14, 16, and 17, reproduced herein below:

Overtime Regulations under the Bombay Shop Act

Subject to Subsection (1) of Section 14: "No employee shall be required or allowed to work in any shop or commercial establishment for more than 9 hours in any day and 48 hours in any week."

(2) Any employee may be required or allowed to work in a shop or commercial establishment for any period in excess of the limit fixed under subsection (1), if such period does not exceed 6 hours in any week.

Spread-over in Shops

16. The spread-over of an employee in a shop shall not exceed eleven hours in any day:

Provided that in cases where any shop is on any day entirely closed for a continuous period of not less than three hours, the spread-over shall not exceed twelve hours on that day.

Provided also that where an employee works on any day in accordance with the provisions of subsection (2) of section 14, the spread-over shall not exceed fourteen hours on any such day, and where he works on any day in accordance with the provisions of subsection (3) of the said section, the spread-over shall not exceed sixteen hours on any such day.

*Section 17: The spread-over of an employee in a commercial establishment shall not exceed 11 hours in any day.

Query on Overtime Calculation

My query is: How to derive the overtime after availing all the provisions of the Shop Act by the employee? Should the overtime be calculated by following Section 14 only?

Kindly revert on the same.

Overtime Wages and Spread-Over Regulations

Overtime wages are payable for working beyond 8 hours. Section 16 is only for 'shops'; it is not relevant for establishments. This provision was basically included for shops that remain closed in the afternoons. The spread-over of 11 hours permitted in establishments means an employee can be given 3 hours of rest out of 11 hours.

Regards,
Shrikant Prabhudesai
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