Is My Friend's Company Breaking Labor Laws with Their Alternate Saturday Schedule?

Hi,

One of my friends' companies follows an alternate Saturday (2nd & 4th off) working schedule. However, on a given working day, their working hours accumulate to 9 hours with a 30-minute lunch break.

My query is, if a company follows the Shop and Establishment Act or Factories Act, the total working hours should not exceed 48 hours a week. Still, every alternate week, they work for 54 hours.

Hence, is the company in contravention of the act, and if so, is there any penalty, and to what amount?

Please clarify.

Anuradha

In any week, the number of working hours shall not exceed 48 hours as per the Factories Act, and issues of overtime may arise in case of exceeding it.

- B. Saikumar

The company is working 54 hours every alternate week but 45 hours every other week. Overall, this schedule compensates so employees can enjoy more family time. The company could require employees to work half-days every Saturday, affecting family time. It's important to consider not only the legal perspective but also the benefits of this arrangement. Enforcing the law might result in mandatory half-day work on Saturdays, leading to more travel and less personal time. Consider the employees' perspective before taking any legal action.

Regards,
Ashutosh Thakre

Overtime and Workweek Compliance under the Factories Act

Working 54 hours in a week will attract overtime (OT) as per the Factories Act. That is, for working 54 hours, it will be required to pay for 48 + (6 x 2) = 60 hours. Moreover, it will violate the maximum OT limit on a quarterly and annual basis.

If the objective of the organization is to provide better working conditions and a better work-life balance, it is always welcome. I know of an MNC in Kolkata that initially tried a 5-day workweek but could not meet production needs. They then shifted to a 6-day workweek with 2 days off for shop floor workers operating in 3 shifts.

Comparison of Workweek Schedules

For a 5-day workweek, the total off days in a year are 104 days. For a 6-day workweek, it is 52 days. If off on the 2nd and 4th Saturdays, it is 76 days, and for a 6-day work with 2 days off, it is approximately 91/92 days.

Thanks & regards,

S K Bandyopadhyay
USD HR Solutions

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Working Hours and Overtime Liability

From the query, it is discernible that the working hours are 8.5 hours per day (with a lunch interval of half an hour not included in working hours). It could be 51 hours or 42.5 hours in a week, depending on whether there are 6 or 5 working days in the week. As pointed out, overtime (OT) liability is attracted as per Section 59 of the Factories Act 1948, and mind you, there is no exemption from OT liability. Once this practice comes to the notice of the Labour Inspector, questions are bound to arise, and difficulties would follow!

Regards,
KK

Dear All,

Thank you all for your posts. I have another part of the query. If the company also has certain domestic locations like "Regional offices" where the work time is again 8.5 hours a week and alternate Saturdays off but instead of the Factories Act, the Shop and Establishment Act is applicable. In such a situation where state-specific Shop and Establishment Act is applicable, then the OT rules would also apply.

Please clarify.

Regards,
Anuradha