Hi all,
I just had a question regarding overtime to be paid to employees. If the organization has 500 people and the establishment is located in Andhra Pradesh, is there any rule or regulation that makes it compulsory to pay overtime? If yes, could anyone help me with the rules?
Cheers,
Vikram
From Ireland
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I just had a question regarding overtime to be paid to employees. If the organization has 500 people and the establishment is located in Andhra Pradesh, is there any rule or regulation that makes it compulsory to pay overtime? If yes, could anyone help me with the rules?
Cheers,
Vikram
From Ireland
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All the basic acts, i.e., The Factories Act, Plantations Labour Act, or Andhra Pradesh Shops and Commercial Establishments Act, have provisions to pay overtime wages at the rate of double the rate of wages for the overtime worked.
Regards,
Madhu.T.K
From India, Kannur
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4526Regards,
Madhu.T.K
From India, Kannur
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ITES is not exempted from the operation of labor laws. If the IT firm is registered under the State's Shops and Commercial Establishments Act, then it has to follow the rules framed under the said Act. If so, an employee who comes under the definition of "workman" or "employee" shall be paid double the rate of salary for every hour worked in addition to the normal hours. The normal working hours may differ slightly between 8 hours and 9 hours depending upon the State legislation. In general, it is eight hours.
Regards, Madhu.T.K
From India, Kannur
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Regards, Madhu.T.K
From India, Kannur
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Dear Madhu Sir and seniors, I was going through the Minimum Wages Act books & references and found the below paragraph which says that whoever is getting wages as per the Minimum Wages Act can only claim overtime payment, not those who are getting higher wages. Can you please clarify this sentence? (Minimum Wages Act 1948, Sec 14)
• The employee not covered under the Minimum Wages Act will not make a claim for overtime under the said Act. Municipal Council, Halta v. Bhagat Singh, (1998) 2 sec 443: AIR 1998 se 1201: (1998) 1 LLJ 815: (1998) 2 LLN 409: 1998 LLR 298 (SC).
By the above sentence, can an employer get an exemption from the Factories Act 1948 on paying double the wages?
Thanks.
From India, Chennai
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• The employee not covered under the Minimum Wages Act will not make a claim for overtime under the said Act. Municipal Council, Halta v. Bhagat Singh, (1998) 2 sec 443: AIR 1998 se 1201: (1998) 1 LLJ 815: (1998) 2 LLN 409: 1998 LLR 298 (SC).
By the above sentence, can an employer get an exemption from the Factories Act 1948 on paying double the wages?
Thanks.
From India, Chennai
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It is correct that overtime payment, as per Section 14 of the Minimum Wages Act, is applicable only to those who are receiving minimum wages and not to employees who are receiving more than what the minimum wages notification states. Municipal Council Vs. Bhagat Singh (AIR 1998 SC 1201), State of Gujarat Vs. Savilal H Shah [2003 (11) LLJ 641 (Guj)], and many other verdicts support this.
However, Section 14(2) states that nothing in this Act shall prejudice the operation of Section 59 of the Factories Act in any case where those provisions are applicable. Similarly, the Mines Act, Plantations Labour Act, and the Shops and Commercial Establishments Act also have similar provisions for the payment of overtime wages to employees without any conditions regarding statutory minimum wages. The only condition is that supervisors and managers are not entitled to receive overtime wages. Unfortunately, this provision is not available in the Minimum Wages Act. Still, under the Minimum Wages Act, overtime payment can be claimed even by a manager whose salary is fixed according to minimum wages. It is also important to note that minimum wages are set not only for workers but also for supervisors, foremen, and managers.
Therefore, if the Factories Act mandates paying overtime at double the rate of normal pay, it should be paid regardless of whether the employee is receiving wages at the government-notified minimum wage level or not.
From India, Kannur
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However, Section 14(2) states that nothing in this Act shall prejudice the operation of Section 59 of the Factories Act in any case where those provisions are applicable. Similarly, the Mines Act, Plantations Labour Act, and the Shops and Commercial Establishments Act also have similar provisions for the payment of overtime wages to employees without any conditions regarding statutory minimum wages. The only condition is that supervisors and managers are not entitled to receive overtime wages. Unfortunately, this provision is not available in the Minimum Wages Act. Still, under the Minimum Wages Act, overtime payment can be claimed even by a manager whose salary is fixed according to minimum wages. It is also important to note that minimum wages are set not only for workers but also for supervisors, foremen, and managers.
Therefore, if the Factories Act mandates paying overtime at double the rate of normal pay, it should be paid regardless of whether the employee is receiving wages at the government-notified minimum wage level or not.
From India, Kannur
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I don't understand this. No managers, foremen, or supervisors will get wages less than or equal to the minimum wages fixed by the state government. Even permanent workmen or contract workmen are getting more than minimum wages. As per Section 14, if management convinces workmen to accept overtime wages equal to regular wages, will government authorities be able to sue the employer while checking the OT register at the time of inspection?
Once again, thank you for clarifying my doubts..!
Regards,
From India, Chennai
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Once again, thank you for clarifying my doubts..!
Regards,
From India, Chennai
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Overtime Claims Under the Factories Act
In order to claim overtime under the Factories Act, the overtime work should be within the factory premises. A worker engaged outside the factory premises for any purpose cannot claim overtime. However, there is nothing in the Act that distinguishes between those who perform hands-on/manual work and those doing other types of work.
Overtime Pay for Office Workers
A chowkidar posted in the office will be entitled to receive overtime pay as per the relevant provisions of the Shops and Commercial Establishments Act under which the office is covered.
Madhu.T.K
From India, Kannur
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In order to claim overtime under the Factories Act, the overtime work should be within the factory premises. A worker engaged outside the factory premises for any purpose cannot claim overtime. However, there is nothing in the Act that distinguishes between those who perform hands-on/manual work and those doing other types of work.
Overtime Pay for Office Workers
A chowkidar posted in the office will be entitled to receive overtime pay as per the relevant provisions of the Shops and Commercial Establishments Act under which the office is covered.
Madhu.T.K
From India, Kannur
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