Query related to Working hors as per the Factory Act

Dear Seniors.

Do help me with my confusion related to the working hours as per the factory act:

48 hours is the maximum limit for a one-week work capacity and the employers are flexible to choose this work time and make it available in 4 days, 5 days, or 6-day week structure.

1) In 4-day week structure, 12 hrs is the spread over ,where working hrs is 5 hrs work+0.5 hrs rest+5 hrs work+0.5 hrs rest+1 hr work, in this system if a worker exceeds 12 hrs but not more than 30 min ,is he eligible for overtime?

2) What will be the working hours for 5-day & 6-day week structure? what will be the overtime rule in both the cases?

3) What is the percentage of basic pay? is it 50% of CTC or gross salary?

As per present factories act you can not work four days in a week.
Formulae is simple as per factories act,you can not take more than 48 hours in week and 9 hours in day .
If you work 4 days in a week you can take max work of 36 hours in a week and if you work 5 days in a week than you can work for 45 hours in a week.just wait for new code implementation where these provisions will be allowed

In respect of establishments which work for 5 days or 4 days, the concept applicability of overtime wages for work of more than 48 hours will not be applicable. In such situations, the any hours exceeding the prescribed hours per week will qualify for overtime. Please refer Philips India Ltd vs Labour Court, Madras & Ors (1985 AIR 1034) attached.

The basic salary should not be less than the sum of the salary fixed by the government as minimum wages. Any percentages on gross salary as basic salary popularly available in the HR groups are just creations of the HR persons and it has no legal standing.

Working Hours Maximum 8 Hrs, Total 48 Hrs and addition1 hrs or .5 hrs Lunch Time Provide.
There is no any provision in factory act like 4/5 days working in normal condition, there is on weekly basis.
Daily wages Basic pay is fixed as per Minimum wages act.
For CTC Employee's you can go Like basic 50%.

Reply to your query no. (1) - As per Factories Act any work beyond 48 hours in a week or 9 hours per day OT will be applicable. In new Labor codes 9 hours per day concept has been dropped. Therefore, after implementation of new labor codes, any extra work beyond 8 hrs OT will be applicable. Basically it is not possible to work 12 hours continuously as per Factories Act as it will violate total allowable OT hours per quarter and also increase chances of accident , poor quality and less productivity.

Reply to your query no. (2) - in case of 5 days week , maximum 5*9 = 45 hrs work is possible and any hours of work beyond 9 hours per day OT will be applicable as per present Factories Act. For 6 days work there is no issue and OT will be on the basis of 48 hours per week or 9 hours per day which is in favor of the worker. As per present system if any worker presents for 5 days in a week out of 6 days and work for 10 / 11 hours for 2 / 3 days in the week, the the concept of 9 hours per day will be applicable where 9th hour will be at single rate and beyond 9 hours will be double the rate OT payment.

Reply to your query no. 3 what appears to me that your query is based on definition of Wages under new Labor codes. It is neither Gross Salary nor CTC. It is 50% of the total remuneration calculated as per definition of Wages under new labor codes. Total remuneration is equal to Basic & DA and Allowances paid as per exclusion list of definition of wages (a) to (i). This is nothing but all payable amounts - exceptions are Mediclaim insurance premium, EC policy premium, Group LIC Policy premium etc.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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