Understanding Overtime Pay for Line Workers Under the Factories Act: Need Clarification

Hello all, I wanted some clarity on the concept of overtime to be paid as per the Factories Act. It is being asked specifically in respect to line workers. If any workman works beyond the stipulated time of 9 hours while being on official duty outside the company premises, will he be eligible for overtime? Request clarification. Thanks.

Regards,
Sanchi

He can be paid overtime, provided he reports back to the workplace after official duty outside the factory premises.

For work outside the factory, no overtime is payable. Overtime applies to working beyond the specified time in the factory. In R Ananthan Vs Avery India Ltd, Madras and Addl. Labour Court, Madras, [1972 (42) FJR 304 (Mad. HC)], it was decided that to attract overtime wages, the overtime work should be in the factory itself, which means within the factory premises, including the precincts thereof.

If he worked out of the factory, then it will be counted as outdoor duty. For this, he will be eligible for tour expenses as per his grade and company policy.

In Nigeria, a workman working outside the factory or location attracts overtime payment called OUTSTATION ALLOWANCE.

Madhu sir, are you sure of that? I think if an employee is sent out of the factory on official work, he is considered working until the time he is on duty. If that time exceeds 9 hours, he will be eligible for overtime. Probably, travel time after finishing the work will not be counted.

This is because such workers who attend to customer complaints, installation work, etc., would be entitled to certain allowances like outstation allowance to compensate for their additional hours of work. However, if you extend the working hours to consider overtime payments, there will be no limit to overtime wages. It is true that when a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages. This is a mandatory provision as per section 59(1) of the Factories Act. But here the question is whether the expression "a worker works in a factory" means "a worker working in the factory in which he is employed" or "a worker works in any factory" or "a worker working anywhere he is directed to work."

In the Avery case, the court, while dismissing the petition by the aggrieved worker, has kept open the possibility that he can raise an industrial dispute to get paid for work outside the factory but cannot demand overtime wages for the work. See the attachment also.