1. I would like to know if the IT industry is exempt from paying overtime compensation under the law. If yes, could anyone here please specify which law applies? Alternatively, are there any standing instructions or rules/regulations regarding overtime in general that also apply to the IT industry?
2. Is it mandatory for an IT company to maintain a time in and time out register? What does the law state about this? Can anyone please provide guidance?
From India, undefined
Acknowledge(0)
Amend(0)
2. Is it mandatory for an IT company to maintain a time in and time out register? What does the law state about this? Can anyone please provide guidance?
From India, undefined
Acknowledge(0)Amend(0)
Overtime Compensation in the IT Industry
Since the term "overtime compensation" signifies the compensation payable for the additional work done or the additional hours of work spent by the employee over and above the normal working hours at the behest of the employer, there cannot be any statutory exemption for this in industrial employment. This is the general position.
However, IT and ITES companies are covered by the States Shops and Establishments Acts, and as such, there can be a slight departure from this general position depending upon whether any exemption has been granted by the State Government. For example, exemption from chapters II and III of the TN Shops and Establishments Act, 1947 has been granted in respect of Software Industries in the State of Tamil Nadu. If we analyze the notification, we'll find that the exemption is a conditional one subject to any complaints, in that section 14 of the Act stipulates overtime wages for hours worked beyond the normal working hours. So, the inescapable conclusion would be that there is no statutory exemption for overtime payment.
As far as I understand, work assignments in the IT industry are time-bound based on the total number of hours required for the completion of the same. Therefore, normally, the element of flexibility of work would be available, and if the time schedule of work is realistic and the employee's performance is effective and consistent, the question of overtime at the behest of the employer would not arise.
Register Maintenance Requirements
They have to maintain certain registers in respect of their employees under the respective rules, including the register of employment showing the number of hours worked daily by each employee.
Regards
From India, Salem
Acknowledge(1)Amend(0)
6108Since the term "overtime compensation" signifies the compensation payable for the additional work done or the additional hours of work spent by the employee over and above the normal working hours at the behest of the employer, there cannot be any statutory exemption for this in industrial employment. This is the general position.
However, IT and ITES companies are covered by the States Shops and Establishments Acts, and as such, there can be a slight departure from this general position depending upon whether any exemption has been granted by the State Government. For example, exemption from chapters II and III of the TN Shops and Establishments Act, 1947 has been granted in respect of Software Industries in the State of Tamil Nadu. If we analyze the notification, we'll find that the exemption is a conditional one subject to any complaints, in that section 14 of the Act stipulates overtime wages for hours worked beyond the normal working hours. So, the inescapable conclusion would be that there is no statutory exemption for overtime payment.
As far as I understand, work assignments in the IT industry are time-bound based on the total number of hours required for the completion of the same. Therefore, normally, the element of flexibility of work would be available, and if the time schedule of work is realistic and the employee's performance is effective and consistent, the question of overtime at the behest of the employer would not arise.
Register Maintenance Requirements
They have to maintain certain registers in respect of their employees under the respective rules, including the register of employment showing the number of hours worked daily by each employee.
Regards
From India, Salem
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Legal Clarification on the Employment Right of Apprenticeship & Unauthorised Overtime.pdf
Compensation Benchmarking Survey.doc