Can Employees Claim Overtime for Extra Hours Despite Not Exceeding 48 Weekly Hours?

Dear Seniors,

If the organization has a weekly off on Thursday and an employee has availed leave (PL/EL/SL/CL) on Friday and Saturday, can the employee ask for overtime for 2 hours daily if they work 10 hours on Sunday, Monday, Tuesday, and Wednesday?

However, as per the Factories Act, the employee should not work more than 48 hours in a week. In the scenario described above, the employee has only worked up to 40 hours.

Thanks in advance.

Regards,
Prashant

Overtime Wages and Eligibility

It is true that overtime wages are payable only when an employee has worked for more than 48 hours in a week. However, an employee who is on leave to which they are eligible is considered as having worked for all purposes, including deciding their eligibility for annual leave with wages, bonus, gratuity, and other benefits. Moreover, they are paid for that leave day. If you consider it, they will certainly be eligible for overtime wages.

At the same time, in respect of a daily-rated worker who is not paid for the day on which they remain absent or who is not called for work, the principle of 48 hours will apply. Normally, whenever an employee has not worked for the entire six days in a week but has worked for more than 8 hours on working days, overtime at a single rate may be paid. There is nothing wrong in doing so because overtime beyond 48 hours is to be paid at double the rate of wages.

Regards, Madhu T K

Overtime Hours Calculation as per Factories Act

As per Section 59 of the Factories Act, where a worker works in a factory for more than nine hours in a day or more than forty-eight hours in a week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages. For the purposes of this sub-section, in computing the earnings for the days on which the worker actually worked, refer to Section 59(3) - Explanation.

In the instant case, the worker has worked for 4 days, and each day for 10 hours. If we follow the Factories Act, it will be: 8 hours normal + 1 hour single + 1 hour double = 8 + 1 + 1x2 = 11 hours per day.

As Mr. Madhu T.K. has suggested, paying overtime for any hours beyond working hours is a practice followed by many companies, including MNCs. The choice is yours as per your organization's culture, rules, etc.

Thanks & Regds.,
S K Bandyopadhyay (West Bengal)

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Interpretation of 9 Hours of Working

There is one more interpretation of the concept of 9 hours of working. If you work for 9 hours a day, no overtime wages will accrue. However, if the working hours exceed 9 hours, then overtime at double the rate is to be paid for the hours that exceed 8 hours. In other words, if you work for just 9 hours a day without exceeding 48 hours a week, no overtime wage can be claimed. On the other hand, if you work for 10 hours, then overtime pay is required for 2 hours, not just for the one hour that exceeded 9 hours.

Regards, Madhu T K