How Can We Officially Handle OT Payments Now That Biometric Tracking Is in Place?

Hi Team, in my factory, employees are working extra hours, known as "OT," so we are paying them in cash. It's unofficial, but my management introduced a biometric system where every timing is recorded. If an employee goes to the labor court, it becomes a significant problem. How can we convert this into an official process?

Official Payment Methods for Overtime

I think you know the answer. You need to pay officially by cheque or bank transfer, and you need to pay all statutory dues. (Note: Overtime wages are double the rate compared to normal wages.)

If the management is not willing to listen, then there is nothing you can do. I suggest you put the risk and the suggestions in writing (or in an email), keeping a copy for your future reference, so that in case there is a problem, you are not blamed for it. In the end, it is the business owners who have to decide how to deal with a risk.