Understanding Overtime Payment Provisions in Factory Act 1948: Worker Compensation Clarification - CiteHR

Dear all,

Greetings of the day! I have a query for all members regarding the payment of overtime under the Factory Act 1948. As per the act:

"Under Sec. 59, it is mentioned that where a worker works in a factory for more than 9 hours in any day or for more than 48 hours in any week, he/she shall, in respect of overtime work, be entitled to receive wages at the rate of twice his/her ordinary rate of wages."

As shown above, if a worker works more than 9 hours on any day or more than 48 hours in a week under section 59, then he will be entitled to double the amount of normal salary for overtime.

Questions Regarding Overtime Payment

Now, I have questions here:

1. If a worker works only 5 days in a week and also works 1 hour extra per day (1 hour extra from the prescribed duty period), will he be entitled to double the salary for that 1 hour as stated in the act?

2. The worker performs normal duty for 5 days and works overtime for 8 hours on a weekly holiday, resulting in double payment for 16 hours, thus receiving payment for the entire month's salary.

I pay the same way, but my question is, since he worked 9 hours daily, according to this, he worked only 45 hours in a week, i.e., he is not covered under the Factory Act's overtime payment rule. So, in such a situation, should we pay the workers the normal salary (single payment) or as it is written in the Act?

Clarification on Overtime Eligibility

I believe:

26 x 8 = Only after completing 208 hours (48 hours in a week), a worker should be eligible for double payment, and less than this should be normal salary payment (single payment).

Please consider that if I want to give overtime in one day, the worker will be eligible after the normal working hours, i.e., either 8 hours or the hours approved by law.

Please provide guidance!

From India, Rudarpur
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In the scenario described, the interpretation of overtime payment under the Factory Act 1948 is crucial. Here are the key points to consider:

1. Overtime Eligibility:
- As per the Act, overtime payment entitlement is triggered when a worker exceeds 9 hours in a day or 48 hours in a week.
- Working 1 hour extra per day for 5 days does not meet the threshold for overtime payment as it totals to 45 hours in a week, below the 48-hour requirement.

2. Weekly Holiday Overtime:
- Working 8 hours on a weekly holiday would result in 45 regular hours + 8 overtime hours, totaling 53 hours for the week.
- In this case, the worker would be eligible for overtime payment for the 5 additional hours beyond the 48-hour weekly limit.

3. Payment Calculation:
- The Act specifies that double payment is applicable after completing 208 hours in a month (48 hours per week).
- Therefore, for any additional hours beyond the standard workweek, double payment should be made as per the Act's provisions.

4. Guidance:
- Ensure compliance with the Factory Act by accurately tracking work hours and applying overtime rates accordingly.
- Consult legal experts or labor authorities for specific clarifications on overtime calculations to avoid any discrepancies.

By following the guidelines set forth in the Factory Act 1948, you can ensure fair and lawful overtime payment practices within your organization.

From India, Gurugram
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