Shift allowance for 4 hr extra - condition in factory act or ID act?

nbrana73
Generally shift allowance is paid for full 8 hours shift. But when employee perform 12 hrs duty i.e 8 hours normal duty and 4 hours extend duty or in absent of reviler perform more 4 hours duty. Is he eligible for 8 hours full and 4 hours half shift allowance ? what is the condition in factory act or ID act ? Please reply
harpreetwalia
Hi Dear,
There is no shift allowance criteria in factory act. As per the factories act, the employee who has worked beyond 8 hours need to be paid overtime, double the amount of basic salary. Shift allowance is one of the common allowance been paid by the employer as a part of salary annexure, nothing beyond that. If person has worked for 9 hours, then OT is not applicable as it has got 1 hour of break time included. but if employee crosses shift beyond 9 hours then the OT would be paid on the time delivered in excess of 8 hours.
nbrana73
Sir,
thanks for your guide line but be more specific to below case.
Our company is given shift allowance as a part of settlement. before some months company is paying half shift allowance to those employee who perform 4 hours extra duty ( i.e. suppose 15o rs is morning shift allowance then he was getting 75 rs for working towards 14:00 to 18:00 hrs.) Now company has stopped this shift allowance and telling that shift allowance applicable for working more then 7 hrs in shift.
how can we restore previous option.
harpreetwalia
Dear Friend,
I would like to again mention here that there is no hard and fast rule for shift allowance in labour laws. This is a matter of company policy and the management has to decide considering harmony to be maintained as a part of industrial relations. Specifically writing that in my opinion or a suggestion to pay full shift allowance for delivering 4 extra hours as this will fulfill the criteria of overtime payment as well. But mind it employee do not exceed the extra hours duty limitation to of 50 hours in a quarter of month.
Bharat Gera
Dear Friend,
For appropriate reply to your question, it is necessary to know the salary/wage break up of the workmen.
How do you calculate your overtime? Your answer lies in this question the moment you answer this you get your reply.
Normally companies have break up - basic wage, DA (VDA/FDA) and various allowances. Allowances are paid once only. OT is calculated on Basic + DA, allowance are not considered for payment of OT. similarly if your workmen has worked for more than the stipulated shift, he will be paid OT. Shift allowance is paid once for the working day.
Warm Regards
Bharat Gera
HR Consultant
9322404765
Madhu.T.K
I understand that you pay overtime wages also along with shift allowance at half the rate. If shift allowance is a service condition as per settlement and the company has been giving this allowance for half day working at half the rate, you cannot withdraw it without serving 21 days notice following section 9A of Industrial Disputes Act.
nbrana73
@ Bharat Sir,
Our overtime is calculated on Basic plus VDA. Management giving shift allowance for half shift before few months. e.g. If morning shift allowance is 150 rs and worker perform morning shift plus half evening shift 6:00 to 18 : 00, he got 150 plus 75= 225 rs for shift allowance. Management has suddenly stopped . What the provision in law please tell
Bharat Gera
Dear Friend,
Stopping payment of shift allowance being paid for some time becomes a service condition and stoppage of payment amounts to changing service condition in violation of section 9A of the Industrial Disputes Act. Please study the section, action of the management is punishable under the Act,
Warm Regards
Bharat Gera
HR Consultant
9322404765
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