How to Create an Overtime Policy for Draftsmen and Support Staff Under the Bombay Shop & Establishment Act?

Dear All,

I am in the process of creating an overtime policy in accordance with the Bombay Shop & Establishment Act. Our team comprises various support staff and draftsmen with qualifications such as ITI, NCTVT, etc. They are responsible for the design aspect of our projects.

Eligibility for Overtime

I would appreciate your insights on the following questions:

1) Which types of employees are eligible for overtime? Is it applicable only to blue-collar workers?

2) Based on their technical qualifications, are our draftsmen entitled to overtime pay?

3) Is there a salary limit for overtime, similar to PF (Rs. 15,000)?

4) Are there any restrictions on the maximum number of overtime hours an employee can work each month?

If anyone has a current policy addressing these points, sharing it would be greatly appreciated. Alternatively, I would be thankful for your responses to the above queries.

Thank you.

Location: Pune, India

City-India-Pune, Country-India, blue collar, overtime policy, shop & establishment act

Under the Bombay Shop & Establishment Act, overtime policies have been well stipulated. Here are the answers to your questions:

1) Eligibility for Overtime: As per the Bombay Shops and Establishment Act, every employee, whether blue-collar or white-collar, is eligible for overtime if they work beyond the stipulated working hours, which is 9 hours a day or 48 hours a week.

2) Overtime for Draftsmen: Your draftsmen, regardless of their technical qualifications, are entitled to overtime pay if they work beyond the regular working hours.

3) Salary Limit for Overtime: There is no salary limit for overtime under the Bombay Shops and Establishment Act. The overtime rate is typically twice the regular wage rate, irrespective of the employee's salary.

4) Maximum Overtime Hours: The Act caps the number of overtime hours at 10 hours in any week. In other words, the total working hours, including overtime, should not exceed 60 hours in a week.

Please note that all overtime should be voluntary, and employees have the right to refuse to work overtime. Also, remember to maintain proper records of all overtime work as per the Act's requirements.

While creating your overtime policy, ensure it aligns with these guidelines. Involve your employees in the process and clearly communicate the policy to them. This will help in creating a fair and transparent system.

Please consult with a local labor law expert or attorney to ensure full compliance with the Act and other related laws. This response should not be taken as legal advice but as general guidance based on the Bombay Shops and Establishment Act.

Overtime Policy Considerations Under the Bombay Shop & Establishment Act

The rules under the Bombay Shop & Establishment Act are sufficient; there is no need to create a separate policy for overtime. Overtime is an option to manage situational demands for extra work beyond normal working hours in cases of exigency and emergency. Draftsmen fall under the workmen category, and other workman staff can be put on overtime. However, you need to consider a compensation package for supervisors and managers required to work beyond normal hours. Do not give or create the impression that demanding overtime is a matter of right. Conduct a survey internally to understand the cost comparison against the requirements of hiring new additional manpower or shifting schedules. You are the right person to judge whether things can be managed by overtime or if extra manpower is needed.

Eligibility for Overtime and Managerial Roles

Every person other than a manager will be eligible for overtime in an office. A manager must be evaluated based on their work performance, not just their job title. The key consideration is that to be a manager in reality, they must primarily engage in supervision work and have control over subordinates, including approval of their leave, scope of work, overtime hours, etc.

Unofficial Rule in Maharashtra

In Maharashtra, there is an unofficial rule that managers cannot exceed 5% of the total workforce. This rule can always be disputed in court since it is not specified in any official acts or regulations. We advise clients to avoid creating situations that may lead to legal disputes in the first place.

Policy Review and Industry Standards

Now, you need to review your policy considering all these factors. Additionally, it is essential to consider what Mr. Mohanty mentioned regarding industry standards. If you aim to retain your employees, your offerings should at least meet industry norms.