Factory Wage Policy: How Should We Handle Pay for Idle Time with Biometric Tracking?

Management wants to establish a policy stating that any worker not physically present at their workstation or not producing as per norms will not be paid for the period they are deemed idle. Basically, punch time for the shift and wage calculation are to be taken as per the workers' physical presence on the machines. The company is planning to put a biometric system on workstations and calculate wages accordingly.

I want to know if this is legal in Maharashtra?

It is legal subject to some conditions. First, you should ensure a time-based minimum wage. It should be paid even if the worker remains idle due to the non-availability of materials or power.

Second, the wages should be linked to production or piece rate as provided in the minimum wage notification. If not provided, then you should give a base wage and then a piece rate based on production. However, you cannot simply set it to zero if the worker, who is available for work, is not assigned any tasks due to the non-availability of materials or power.

Other than what Mr. Madhu T K has explained, there is a need for nature call time. It is better to introduce a production incentive scheme based on productivity linked with rejection and safety norms for proper control of the situation.

Regards, S K Bandyopadhyay

Hi, here are a few inputs:

- Salary should be paid to employees based on their presence in the office or premises, or leaves taken as per policy.
- Employees should receive salary and benefits according to the minimum wage standards of the local state laws.
- It's important to note that wages are different from incentives.
- Employers need to establish a policy to determine work hours or incentives. While incentives are not mandatory, wages must be paid as required by state laws.
- There are specific legal provisions to address situations such as no work, shortage of production or materials, or absence from duty. These should not be assessed solely based on the physical presence of employees in the workplace.

Payment of Wages Act and Factory Act Provisions

As per the Payment of Wages Act, Section 9(2)(b), deductions are allowed for absence from the place of work. This refers to the time when the worker has signed in or punched in but is not working. The original section provides protection in the case of a tool-down type of strike, but it can be used for this.

On the other hand, the Factory Act, Section 103, states: If a person is found in a factory at any time, except during intervals for meals or rest when work is going on or the machinery is in motion, he shall, until the contrary is proved, be deemed for the purposes of this Act and the rules made thereunder to have been at that time employed in the factory.

So, once the worker enters the factory, he is deemed to be working. However, there is a provision for showing he was not working.

Practical Implementation in Factories

There are factories I have visited where they have two sets of punch-in machines: one at the factory gate and one at the work-floor. The attendance is computed, and overtime is given based on the records of the person being on the work-floor, not just having come into the factory. This is because the buses bringing the workers often come early, and workers also arrive early due to free food (breakfast, lunch, dinner) before the shift starts for those who are present. However, there is also an allowance for breaks and a standard additional allowance to allow the worker to leave the shop floor for going to the washroom, etc.

Agreement with the Union

If you want to follow such a rule, you should have an agreement with the union specifying that you will count attendance on the shop floor, give adequate allowance, and also modify the standing orders. Please note that the standing orders need approval from the Labour Commissioner, so naturally, unless the terms are fair, you will not be able to get them passed.

Despite the above, please remember that you will have to pay the worker minimum wages as long as he is in the factory, even if he worked less than the specified time.

This is a major change in management and has legal implications at many points. Therefore, take the steps carefully.

Establishing a policy regarding attendance and wage calculation based on physical presence https://101games.io can help improve productivity and accountability in the workplace.

To my understanding, the measure proposed is punitive in nature and could be invoked only in exceptional circumstances.

Mr. Venu, is your reply in reference to Sec 9(2)(b) of the Payment of Wages Act?

Purpose

To ensure fair compensation based on actual work performed and to enhance productivity through a biometric attendance system.

Scope

https://strandshint.io This policy applies to all employees who are required to be physically present at their workstations.