Is It Fair to Deduct a Full Day's Leave for Shorter Saturday Hours? Seeking Clarity on Policy Compliance

In our company, a normal working day (9:30 AM to 6:00 PM) is considered 9 hours, including a half-hour lunch break. On Saturdays, our working hours are from 9:30 AM to 4:00 PM, which is 2 hours shorter than regular workdays.

Proposed Leave Accumulation Approach

Our manager is proposing to accumulate these 2 hours across 4 weeks (8 hours total) and treat it as equivalent to one full day's leave each month, amounting to 12 days annually. He plans to deduct these 12 days from our Earned Leave (EL) and Casual Leave (CL). Would this approach be justified and compliant with company policies and labor regulations? Please provide clarification on this.

Hi, If your office has fixed work hours on Saturdays from 9:30 AM to 4:00 PM as per policy, then there is no question of leaving early. In that case, deducting the same from EL/CL is not right.

Overtime Compensation for Extended Working Hours

In your company, working hours are from 9:30 AM to 6:00 PM, totaling 9 hours, with a half-hour lunch break. Therefore, the actual working hours amount to eight hours and thirty minutes, exceeding the standard eight-hour workday by half an hour. This results in each employee working an extra 30 minutes as overtime daily and 2 hours and 30 minutes weekly. Legally, they should be compensated at double the rate for this overtime, excluding Saturday work.

Adjusting Working Hours to Offset Overtime

If your company is not currently compensating for this overtime, one solution could be to adjust working hours from 9:30 AM to 4:00 PM to offset the additional time worked. It is advisable to discuss this with your manager to ensure proper compensation for the overtime hours worked.

Ensuring Compliance with Legal Requirements

Please address the issue of overtime pay promptly to align with legal requirements and fair employment practices.

Your manager's contention is completely wrong, unwarranted, and illegal.

Understanding the Karnataka Shop and Establishment Act

Under the Karnataka Shop and Establishment Act, you are required to work 48 hours a week, excluding lunch breaks. If you work beyond that (and it cannot be a regular occurrence), they need to pay you overtime at double the gross rate. Please note that the act does not differentiate between workers and officers for the purpose of overtime eligibility.

Calculation of Working Hours

Your working hours are:
8.5 hours a day X 5 days = 42.5 hours
6 hours on Saturday
Total: 48.5 hours

Therefore, the structure of the work hours is made taking into account the number of hours you are required to be in the office.

Misinterpretation of Working Hours

The contention that being 2 hours less means you are taking 2 hours leave is definitely wrong. Further, the office timing is as such, and therefore you are not leaving early but leaving on time.

Salary Considerations

Now, coming to salary, you receive a monthly salary, not an hourly salary. Therefore, if the work time is less than a full day (because the company structured it as such), it is not your problem, and there is no justification for deducting salary or adjusting leave for it.

Employee Dynamics in Bengaluru

You are in Bengaluru, where employees are quite active, and talent is in short supply. If the company tries to impose such a clause, it will find that employees may simply leave.