How Can We Create a Fair Zero LOP Policy for Employees Working Beyond Official Hours?

Dear Sir/Madam,

I am working as an HR manager (the only HR person) in an MNC. Here, we have a few department heads and their team members who work more than official hours and travel officially on days off and holidays. We are planning to create a ZERO LOP (Loss of Pay) policy for such employees, as they work 24/7 with no personal commitments.

Please help me with how to create such a policy and advise me on the merits and demerits of the policy. Additionally, please suggest a better name for this policy.

Thank you,
Deepu

Hi Dilip, it is good to hear that some employees don't mind working extra hours. However, my experience suggests it's better not to create a policy that only tracks a specific group of employees. Tomorrow, the office might need to answer to statutory officers, and there are also security concerns.

Recommendation for Time and Attendance Policy

1. Develop an official policy (or add an additional clause) for time and attendance in the standing orders.
2. If the company is under the Shop Act or Fact Act, maintaining a muster roll of all employees is mandatory. It can be complicated to explain to officers the grounds on which an employee was allowed to work for 48 hours or continuously for 20 days, which is not possible under normal circumstances. Therefore, regular practices must be in place—for example, if someone worked on a holiday, grant them a compensatory off and allow them to avail it later.
3. There should be traceability for employee working hours. While leniency can be allowed for some employees, accurate information must be available for both internal and external approval and justification.
4. Time tracking exemptions can be given to employees for a defined period (e.g., employees working on a particular project for a specific period). However, you must produce a muster roll, provide the actual number of days worked, holidays availed, leave granted, leave availed, whether they worked extra hours, and how you compensate for such additional effort.

These recommendations aim to ensure transparency, compliance, and fairness in monitoring employee working hours. Thank you for considering these suggestions.

Best regards,
[Your Name]