Seeking Clarity on Working Hours and Overtime Rules: Can You Help Me Understand?

Hi Seniors, I have 9 years of experience in the HR domain and have been handling an HR Generalist role, including payroll, recruitment, employee engagement, etc. However, I feel that my knowledge is lacking in some areas. In my opinion, CiteHR is a platform for learning and self-development. I will be posting my queries regularly to clear my doubts and enhance my knowledge. My first query is related to the working hours as per the Labor Act.

Working Hours:

General Shift:

1) 8 hours in a day & 48 hours in a week (6 days working)
- Lunch Break: 30 min after 4 hours

2) 9 hours in a day & 48 hours in a week (5 days working)
- Lunch Break: 30 min after 5 hours

Please review the above-mentioned details and correct me if I'm wrong.

Overtime:

Q1. What is the maximum number of hours allowed per day?

Q2. If an employee works half an hour extra than their original timing, will overtime be implemented in that case, or should the employee work for at least one hour extra?

I also need help if anyone can share HR notes or any website URL or any certification course to upgrade my knowledge.

Please go through the Bare Acts of all statutory Acts so that you may get an idea.

Upgrading Your Knowledge

Regarding the upgradation of your knowledge, you can consider pursuing courses in Management/HR Management from AIMA (All India Management Association), New Delhi, or IGNOU. XLRI, Jamshedpur, is conducting courses for working professionals. Also, you can approach NIPM and/or ISTD for their magazines/journals.

I presume you are working in a factory. In that case, the Factories Act of 1948 holds the key to your queries.

Working Hours

Regarding your query on working hours, your propositions are correct. Working nine hours a day for five days would total 45 hours of work, and anything beyond 9 hours would attract overtime (OT).

Overtime Regulations

For overtime, the maximum daily work time, including overtime, should not exceed 10 hours, and 60 hours on a weekly basis. Overtime hours cannot surpass 50 hours in a quarter. OT is payable for any portion of working time beyond 9 hours per day or 48 hours per week, which could even be for 30 minutes.

If you are not working in a factory, then the provisions of the respective Shop & Establishments Act of the relevant state would be applicable.

Working Hours and Overtime Regulations

The hours of work shall not extend beyond 8 hours per day. Though you can have up to 9 hours of working (exclusive of intervals for rest), the total hours in a week shall not exceed 48 hours. As such, the hours per day are 8 hours for a factory working for 6 days.

Any period over and above 48 hours shall count for overtime wages. As such, it is not counted per day but per week. Due to this, if any employee has not worked on a day but has worked beyond 8 hours on another day, they will fail to qualify for overtime wages. Obviously, if they had taken an approved leave (paid leave), then that leave day will contribute 8 hours as a working day and qualify for overtime.

A factory working for five days can work for 9 hours a day, and in such a case, the overtime wages will become due after 45 hours of working. It is worth referring to the Supreme Court judgment in Philips India Ltd Vs Labour Court, Madras (1985 SCR (3) 491), which directs that employees of an establishment that has prescribed fewer hours (i.e., less than 48 hours a week, say 45 hours) should pay overtime at double the rate for each hour over and above the prescribed working hours without reference to 48 hours.

Hi Radhakrishnan,

Even I am pursuing a course from XLRI, which is good. There are lots of institutes such as NIPM, NHRD, etc.

Working Hours as per the Factory Act

The Factory Act, as well as Shops & Commercial Establishment, clearly mention 8 working hours, which excludes lunch, rest, and other intervals. Working hours may start at 7, 8, 9, or 10 as you require.

Overtime Payment

Overtime is paid at double wages if exceeding 48 working hours in a week.

Proposal for a Four-Day Workweek

That is not part of labor codes but a new proposal to make companies work for four days a week as opposed to 5 or 6 days. The outcome will be that the workers will work for 72 hours at the rate of 12 hours per day, and the intended purpose of the amendment will be defeated. It is expected that the workers will get three days of rest and they will go for outings, thereby generating revenue. However, when they get three days off, naturally, they may engage in other income-generating activities or work overtime in their company, potentially harming their health. The Monday blues of all the HR will persist.

Hi Radhakrishnan Nair,

A few state governments are passing bills in the assembly for 12-hour workdays, causing a lot of agitation. It's uncertain when these will be implemented. It's advisable to keep an eye on the bills and gazettes from the respective states for any amendments.

Regarding the new Labour Codes, there are very few chances of them being implemented until the next parliamentary election.

Please also brief about the maximum overtime work limitation under the Contract Labour Act and Building and Other Construction Works. What is the maximum overtime hours one can work during the month/week?

As of the current date (before the implementation of labor codes) under the Factories Act for the General shift, the duty can be 8.5 hours. This consists of 8 hours of working hours and a 0.5-hour rest interval. Therefore, the total working hours per day are 8 hours, and per week it is 8 x 6 = 48 hours for a 6-day week, including the rest interval. 8.5 hours are allowable as per the Factories Act.

Overtime Work as per SEC-59 (1) of the Factories Act

Where 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 be entitled to wages at twice his ordinary rate of wages for overtime work. This illustrates the classic concept of single-hour OT. Let's consider an example:

A worker's weekly schedule - On the 1st day of the week, it's a weekly off, on the 2nd day works for 10 hours, on the 3rd day works for 11 hours, on the 4th day is absent (with or without pay), on the 5th day works for 9 hours, on the 6th day works for 8 hours, and on the 7th day works for 11 hours. In this week, the worker has not worked for the normal 48 hours. If the worker works 48 hours, then the OT hours will be the total hours worked - 48 hours. But in this case, it has to be based on a daily 9 hours basis.

2nd day - 10 hours: 8 normal hours, 1 hour single OT, and 1 hour double the rate OT = 1 x 2 = 2 hours. Total hours of payment including OT will be 8 + 1 + 2 = 11 hours.

3rd day - 11 hours: 8 normal hours, 1 hour single OT, and 2 hours double the rate OT = 2 x 2 = 4 hours. Total hours of payment including OT will be 8 + 1 + 4 = 13 hours.

4th day - Absent with or without pay, i.e., no hours of work.

5th day - 9 hours: 8 normal hours and 1 hour single OT. Total hours of payment including OT will be 8 + 1 = 9 hours.

6th day - 8 hours (normal working hours). Total hours of payment including OT will be 8 hours.

7th day - 11 hours: 8 normal hours, 1 hour single OT, and 2 hours double the rate OT = 2 x 2 = 4 hours. Total hours of payment including OT will be 8 + 1 + 4 = 13 hours.

Therefore, the total hours of payment including OT for the week will be 11 + 13 + 9 + 8 + 13 = 54 hours.

If it were on a weekly basis, the total hours worked would be 10 + 11 + 9 + 8 + 11 = 49 hours. Therefore, normal work is 48 hours and 1 hour OT = 1 x 2 = 2, i.e., 48 + 2 = 50 hours total work including OT.

Therefore, there will be 54 - 50 = 4 hours of payment loss to the worker.

It's important to note that whether an absent day is classified as with pay or without pay leave has no impact on this calculation as there are no working hours on such days.

Few HR professionals are aware of this calculation, and only a few organizations follow this method. Most organizations pay OT if work exceeds 8 hours in a day.

For half an hour or one hour of OT, payment should be made, and 15 minutes may be disregarded.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To strive towards excellence with effort and integrity.

I think there is no overtime hour limit under the Contract Labour Act (CLA) and the Building and Other Construction Workers Act (BOCW). The overtime limit is applicable only under the Factory Act.