Over Time - Is it mandatory to give information to Factory Office regarding overtime?

rajendradhande
We have a zero overtime policy in our company. Over the years we are following the same. This month due to urgency, we have given over Time to a few workers. Is it mandatory to give information to the Factory Office regarding overtime??
loginmiraclelogistics
Hi Rajendra,
Legally you have to grant them OT, i.e., double the wages for those hours worked overtime. Since you said O overtime policy, that doesn't come as a law. Any policies, practices cannot supersede law of the land.
However if you will have difficulties in paying OT which cannot be overcome, try converting either as incentive/production bonus or compensatory holidays provided involved employees agree to your proposal.
laghuveera-reddy1
Hi Sir,
This is our accounts department reply in mail
Every month , there is difference between payable and paid and we have reconciliation issues .
As per ESI act , ESI contribution on the OT payment also .Please refer the below extract from ESI site
If you have any latest provision stating ESI contribution not required on overtime , please let us know for corrective action at our end.
My suggestion is we have to pay ESI on gross salary not include OT amount . why OT amount is not include OT hours is more then 60 hours. there is no difference between payable reconciliation issues My suggestion is correct or wrong tell me sir
dr.dhameliya@yahoo.com
Dear Rajendra,
As per the Factory Act, You have to take permission for overtime. But if you have paid overtime rate twice of the ordinary wages no one is going to come and ask regarding overtime permission from the department.
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