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Drafting a Time and Attendance Policy

In my organization, I have been asked to draft a policy on time and attendance. Since we are still in the drafting stage, I would like to seek as much help, guidance, and support from you seniors before finalizing the policy. I am looking forward to your assistance (mine is a construction company).

Considerations for the Policy

a) National Holiday Rules
26th January, 1st May, 15th August, and 2nd October are mandatory holidays. The company must observe official holidays on these days. My question is, what are the disadvantages if an organization does not follow these rules?

b) Compliance with the Factories Act
I have considered the requirements as per the Factories Act, which states that an adult worker should not be employed for more than 48 hours a week and not more than 9 hours a day. There must be a compulsory rest of at least half an hour (30 minutes) between each work period, with a maximum of five hours per period. The total work period, including rest intervals, cannot exceed 10.5 hours. Additionally, I have considered the Shops and Establishment Act, which fixes the maximum work hours at 9 hours a day and 48 hours a week. Overtime (OT) should be provided if an employee works beyond the stipulated hours. The Act also mandates that every shop and commercial establishment must remain closed for one day per week. It is unlawful for an employer to call an employee to work on a day when the establishment is closed. My question is, what are the consequences if an organization does not adhere to the prescribed work hours, making employees work long hours without proper rest or weekly offs?

c) Lunch Policy at the Workplace
I have been tasked with drafting a policy that mandates lunch to be taken at the site office or workplace itself, with all staff remaining on-site during lunchtime. There is a small pantry area with limited seating capacity. Given that the staff strength will be around 80 to 85, is it legal for an organization to restrict employees from leaving the workplace during lunchtime and interfere with their right to have their own food?

d) Fixed Lunchtime Hours
The company's lunch hours are set from 1:00 P.M. to 2:00 P.M., and all employees are expected to adhere to these timings. Is enforcing a fixed lunchtime a violation of an individual's fundamental rights? While it may be reasonable to set a lunch period, can an organization dictate the exact timing of when employees must have lunch?

I still have time to address these concerns as the policy is not yet finalized, and the company is not operational. Your guidance on these matters would be greatly appreciated!

From India, Mahesana
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Hello,

It's commendable that you're taking the time to carefully draft your time and attendance policy. Here are my thoughts on your queries:

a) Not observing National Holidays like 26th January, 1st May, 15th August, and 2nd October could lead to legal consequences as it's mandatory to observe these holidays as per The National and Festival Holidays Act. Non-compliance can result in fines, imprisonment, or both for the employer.

b) Adhering to the Factories Act is crucial. If your organization fails to comply with the timings mentioned, it could result in penalties including fines and imprisonment. If an employee is asked to work beyond the stipulated hours without proper overtime compensation, the company is at risk of legal action. Also, the term 'sevarthies' does not exempt the company from adhering to labor laws.

c) Regarding lunch at the site office, the Factories Act doesn't specify where workers should have their meals. However, it mandates that suitable arrangements should be made for workers to have meals in a clean and hygienic place. If your organization insists on having meals at the workplace, ensure there are enough facilities to accommodate all workers comfortably. If not, you could face legal consequences.

d) Having a fixed lunch time is common in many companies. However, the Factories Act mandates that no worker should be made to work more than 5 hours without an interval of at least half an hour. So, as long as you comply with this, there should be no problem with having a fixed lunch hour.

To convince your management, you can explain the potential legal consequences of not complying with these laws, which include fines and imprisonment. Additionally, non-compliance can lead to a negative reputation, which could affect the company's ability to attract and retain talent.

Remember, it's important to respect workers' rights while also meeting the needs of the company.

Hope this helps!

From India, Gurugram
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