Hi,
One of my friends' companies follows an alternate Saturday (2nd & 4th off) working schedule. However, on a given working day, their working hours accumulate to 9 hours with a 30-minute lunch break.
My query is, if a company follows the Shop and Establishment Act or Factories Act, the total working hours should not exceed 48 hours a week. Still, every alternate week, they work for 54 hours.
Hence, is the company in contravention of the act, and if so, is there any penalty, and to what amount?
Please clarify.
Anuradha
From India, Mumbai
One of my friends' companies follows an alternate Saturday (2nd & 4th off) working schedule. However, on a given working day, their working hours accumulate to 9 hours with a 30-minute lunch break.
My query is, if a company follows the Shop and Establishment Act or Factories Act, the total working hours should not exceed 48 hours a week. Still, every alternate week, they work for 54 hours.
Hence, is the company in contravention of the act, and if so, is there any penalty, and to what amount?
Please clarify.
Anuradha
From India, Mumbai
In any week, the number of working hours shall not exceed 48 hours as per Factories Act and the issues of over time may arise in case of exceeding it.B.Saikumar
From India, Mumbai
From India, Mumbai
Dear Anuradha,
The company is working for 54 hours every alternate week, but working 45 hours also every alternate week. Overall, the same is being compensated so that the employees can enjoy some more time with the family. The company can very well ask you to come half day on every Saturday and ruin your family time. Some points need to be observed not only from the law point but also from the benefit time. You may enforce the law, but will be hit back with all Saturdays working half day, where you will travel and lose the entire day. Think from the employee's side before taking any legal action.
Regards,
Ashutosh Thakre
From India, Mumbai
The company is working for 54 hours every alternate week, but working 45 hours also every alternate week. Overall, the same is being compensated so that the employees can enjoy some more time with the family. The company can very well ask you to come half day on every Saturday and ruin your family time. Some points need to be observed not only from the law point but also from the benefit time. You may enforce the law, but will be hit back with all Saturdays working half day, where you will travel and lose the entire day. Think from the employee's side before taking any legal action.
Regards,
Ashutosh Thakre
From India, Mumbai
Dear Anuradha,
Working 54 hours in a week will attract overtime (OT) as per the Factories Act. That is, for working 54 hours, it will be required to pay for 48 + (6 x 2) = 60 hours. Moreover, it will violate the maximum OT limit on a quarterly and annual basis.
If the objective of the organization is to provide better working conditions and a better work-life balance, it is always welcome. I know of an MNC in Kolkata that initially tried a 5-day workweek but could not meet production needs. They then shifted to a 6-day workweek with 2 days off for shop floor workers operating in 3 shifts.
For a 5-day workweek, the total off days in a year are 104 days, for a 6-day workweek it is 52 days, for off on the 2nd and 4th Saturdays it is 76 days, and for a 6-day work with 2 days off, it is approximately 91/92 days.
Thanks & regards,
S K Bandyopadhyay
USD HR Solutions
Email: skb@usdhrs.in
<link outdated-removed>
From India, New Delhi
Working 54 hours in a week will attract overtime (OT) as per the Factories Act. That is, for working 54 hours, it will be required to pay for 48 + (6 x 2) = 60 hours. Moreover, it will violate the maximum OT limit on a quarterly and annual basis.
If the objective of the organization is to provide better working conditions and a better work-life balance, it is always welcome. I know of an MNC in Kolkata that initially tried a 5-day workweek but could not meet production needs. They then shifted to a 6-day workweek with 2 days off for shop floor workers operating in 3 shifts.
For a 5-day workweek, the total off days in a year are 104 days, for a 6-day workweek it is 52 days, for off on the 2nd and 4th Saturdays it is 76 days, and for a 6-day work with 2 days off, it is approximately 91/92 days.
Thanks & regards,
S K Bandyopadhyay
USD HR Solutions
Email: skb@usdhrs.in
<link outdated-removed>
From India, New Delhi
Dear all,
From the query, it is discernible that the working hours are 8.5 hours per day (lunch interval of half an hour is not included in working hours). It could be 51 hours or 42.5 hours in a week, depending on 6 or 5 working days in the week. As pointed out, overtime (OT) liability is attracted as per Section 59 of the Factories Act 1948, and mind you, there is no exemption from OT liability. Once this practice comes to the notice of the Labour Inspector, questions are bound to come, and difficulties would arise!
KK
From India, Mumbai
From the query, it is discernible that the working hours are 8.5 hours per day (lunch interval of half an hour is not included in working hours). It could be 51 hours or 42.5 hours in a week, depending on 6 or 5 working days in the week. As pointed out, overtime (OT) liability is attracted as per Section 59 of the Factories Act 1948, and mind you, there is no exemption from OT liability. Once this practice comes to the notice of the Labour Inspector, questions are bound to come, and difficulties would arise!
KK
From India, Mumbai
Dear All,
Thank you all for your posts. I have another part of the query. If the company also has certain domestic locations like "Regional offices" where the work time is again 8.5 hours a week and alternate Saturdays off but instead of the Factories Act, the Shop and Establishment Act is applicable. In such a situation where state-specific Shop and Establishment Act is applicable, then the OT rules would also apply.
Please clarify.
Regards,
Anuradha
From India, Mumbai
Thank you all for your posts. I have another part of the query. If the company also has certain domestic locations like "Regional offices" where the work time is again 8.5 hours a week and alternate Saturdays off but instead of the Factories Act, the Shop and Establishment Act is applicable. In such a situation where state-specific Shop and Establishment Act is applicable, then the OT rules would also apply.
Please clarify.
Regards,
Anuradha
From India, Mumbai
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