Dear Seniors,
What is the maximum limit for overtime (number of hours) under the Contract Labour Act? I have read through the Contract Labour Act, but it does not specify the maximum number of hours. Additionally, I would like to seek clarification on whether it is a good sign for the principal employer if a contract worker is receiving overtime wages exceeding their monthly wages. Please help me with this matter.
Sekhar
From India, New Delhi
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5What is the maximum limit for overtime (number of hours) under the Contract Labour Act? I have read through the Contract Labour Act, but it does not specify the maximum number of hours. Additionally, I would like to seek clarification on whether it is a good sign for the principal employer if a contract worker is receiving overtime wages exceeding their monthly wages. Please help me with this matter.
Sekhar
From India, New Delhi
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Dear Ratna Under General Standard section 7 (a) Wage & Hour Division it is 40 hours , the maximum limit of overtime in a week . Regards Shubham
From India, Hyderabad
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From India, Hyderabad
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Dear Ratna,
The law for the maximum limit for overtime hours is the same as for factory workers. They are allowed a maximum of 12 hours in a week and 50 hours in a quarter as per the Factory Act.
The question you asked about the contractor worker receiving overtime wages more than their monthly wages is concerning. It suggests that the contractor workers may be working more than 12 hours per day.
Thank you,
J.S. Malik
From India, Delhi
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The law for the maximum limit for overtime hours is the same as for factory workers. They are allowed a maximum of 12 hours in a week and 50 hours in a quarter as per the Factory Act.
The question you asked about the contractor worker receiving overtime wages more than their monthly wages is concerning. It suggests that the contractor workers may be working more than 12 hours per day.
Thank you,
J.S. Malik
From India, Delhi
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Dear Mr.J.S.Malik, Thank you for early reply When contract act doesn’t specify the no.of maximum , which act we should follow to control the overtime. Regards, Sekhar
From India, New Delhi
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From India, New Delhi
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Dear Shekhar,
Employees working under a contract are covered by the Factories Act as well. This means that all provisions of the Factory Act are applied to contract workers if they are working in a factory.
As per the Factories Act, a worker is defined as a person employed directly or through any agency, including a contractor, with or without the knowledge of the principal employer. Therefore, all Factory Act provisions will apply to contract workers if they are deployed in a factory. If they are deployed in any other establishment, then Shop Act provisions will also apply.
Thank you,
J. S. Malik
From India, Delhi
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Employees working under a contract are covered by the Factories Act as well. This means that all provisions of the Factory Act are applied to contract workers if they are working in a factory.
As per the Factories Act, a worker is defined as a person employed directly or through any agency, including a contractor, with or without the knowledge of the principal employer. Therefore, all Factory Act provisions will apply to contract workers if they are deployed in a factory. If they are deployed in any other establishment, then Shop Act provisions will also apply.
Thank you,
J. S. Malik
From India, Delhi
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(Fact Checked)-The user provided correct information regarding the extension of the Factory Act provisions to contract workers working in factories or other establishments. No corrections needed. (1 Acknowledge point)
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The overtime payment is regulated by the Factories Act of 1948 and not the Contract Labour Act. The latter only pertains to regulation and abolition. Don't get confused. Please read the Factories Act for information on daily working hours.
Milind Naik
From India, Mumbai
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Milind Naik
From India, Mumbai
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Dear Malik Sir,
I want to know if we can run the factory using 100% contract labor for all operations, including manufacturing (meaning all activities). If yes, please suggest. If no, please provide suggestions as well as any relevant case law.
Please consider the practical aspect of this.
Regards,
Ram
From India
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I want to know if we can run the factory using 100% contract labor for all operations, including manufacturing (meaning all activities). If yes, please suggest. If no, please provide suggestions as well as any relevant case law.
Please consider the practical aspect of this.
Regards,
Ram
From India
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Dear Ram,
Basically, you cannot hire 100% contract labor because you will not get a license. For the manufacturing process, contract labor is not allowed. It is allowed for intermittent and casual nature of work. Manufacturing process is regular work, so contract labor cannot be used for that purpose.
That is the reason we get a license for contract labor for loading, unloading, housekeeping, etc.
Thanks,
J.S. Malik
From India, Delhi
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Basically, you cannot hire 100% contract labor because you will not get a license. For the manufacturing process, contract labor is not allowed. It is allowed for intermittent and casual nature of work. Manufacturing process is regular work, so contract labor cannot be used for that purpose.
That is the reason we get a license for contract labor for loading, unloading, housekeeping, etc.
Thanks,
J.S. Malik
From India, Delhi
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Dear Mr. Malik,
Regarding your comment on overtime, the overtime limit should be 12 hours per week or 12 hours per day. This is because there is a restriction of 9 hours of work per day. If we calculate the 48-hour restriction per week and subtract the 60-hour limit of working per week, it results in 12 hours per week, which means you can only work an extra 2 hours per day.
Could you please confirm if my calculations are correct, or if there is another approach?
Regards,
Vinay Shedge
9850062122
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Regarding your comment on overtime, the overtime limit should be 12 hours per week or 12 hours per day. This is because there is a restriction of 9 hours of work per day. If we calculate the 48-hour restriction per week and subtract the 60-hour limit of working per week, it results in 12 hours per week, which means you can only work an extra 2 hours per day.
Could you please confirm if my calculations are correct, or if there is another approach?
Regards,
Vinay Shedge
9850062122
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dear vinay you are absolutely right it is 12 hour per week a employee can work 60 hrs per week only so sixty minus forty ,it comes 12 hrs as ot in a week. tks j s malik
From India, Delhi
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From India, Delhi
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As I know, practically and by law, what it suggests is up to 9 hours of labor. More than 10 hours, it comes under the spreadover. This means that overtime pay may be required, either hourly or double, depending on what is outlined in the standing orders act.
G. Pratap
HR
From India, Bellary
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G. Pratap
HR
From India, Bellary
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Sir, I had read in a book way back when dealing with a motor transport driver's case that the rule of the Labour Act is not applicable in the case of departments dealing with the transportation of sick and wounded people. Also, you can employ drivers/labour on a duty of 12 hours subject to a maximum duty of 8 hours. The logic I was told was that a driver does not drive continuously for 12 hours. He takes rest in between; however, the total driving time does not exceed 8 hours. I am unable to locate the clause. Kindly provide. Thanks.
From India, Hyderabad
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From India, Hyderabad
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Dear Colleague,
As rightly briefed by the other colleagues, please read the additional inputs as under:
Contract Labour: An entity takes on the color of the establishment where they work, similar to how water converts its color depending on the type of soil it falls on.
What does it mean:
When contract workers are engaged in a factory, they are governed by the Factories Act 1948.
When contract workers are engaged in a plantation, they are governed by the Plantation Labour Act 1951.
When contract workers are engaged in shops, they are governed by the Shops and Establishments Act 1953 - on all working hours, holidays, and matters connected therewith.
In your case, as it is a factory, you need to follow the provisions of the Factories Act 1948 on all matters relating to shifts/hours of work, and overtime, etc.
Overtime & OT Wages under the Factories Act 1948:
Section 59 of the Factories Act, 1948 provides for overtime and extra wages. According to the provisions, if workers work for more than 9 hours a day or more than 48 hours a week, extra wages should be given at twice the ordinary rate.
Total working hours inclusive of overtime shall not exceed 60 hours in a week, and the total overtime hours in a quarter ought not to exceed 50 (for any one quarter).
A register of overtime must be kept for inspection.
Provisions of the Contract Labour (R&A) Act 1970:
With regard to the provisions of the Contract Labour (Regulation and Abolition) Act 1970, it is a special legislation focusing on licensing, registration, and monitoring the system of contract labour and also on abolishing the engagement of contract labour in employments where the Appropriate Government has passed a GO under Section 10 of the Act.
Hence, kindly check the notifications prevailing for your industry abolishing the engagement of contract labour issued by the Appropriate Government and then establish a system in your factory.
All the best and God bless,
Dr. P. Sivakumar
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
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As rightly briefed by the other colleagues, please read the additional inputs as under:
Contract Labour: An entity takes on the color of the establishment where they work, similar to how water converts its color depending on the type of soil it falls on.
What does it mean:
When contract workers are engaged in a factory, they are governed by the Factories Act 1948.
When contract workers are engaged in a plantation, they are governed by the Plantation Labour Act 1951.
When contract workers are engaged in shops, they are governed by the Shops and Establishments Act 1953 - on all working hours, holidays, and matters connected therewith.
In your case, as it is a factory, you need to follow the provisions of the Factories Act 1948 on all matters relating to shifts/hours of work, and overtime, etc.
Overtime & OT Wages under the Factories Act 1948:
Section 59 of the Factories Act, 1948 provides for overtime and extra wages. According to the provisions, if workers work for more than 9 hours a day or more than 48 hours a week, extra wages should be given at twice the ordinary rate.
Total working hours inclusive of overtime shall not exceed 60 hours in a week, and the total overtime hours in a quarter ought not to exceed 50 (for any one quarter).
A register of overtime must be kept for inspection.
Provisions of the Contract Labour (R&A) Act 1970:
With regard to the provisions of the Contract Labour (Regulation and Abolition) Act 1970, it is a special legislation focusing on licensing, registration, and monitoring the system of contract labour and also on abolishing the engagement of contract labour in employments where the Appropriate Government has passed a GO under Section 10 of the Act.
Hence, kindly check the notifications prevailing for your industry abolishing the engagement of contract labour issued by the Appropriate Government and then establish a system in your factory.
All the best and God bless,
Dr. P. Sivakumar
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
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(Fact Checked)-The information provided in the user reply is accurate and provides valuable insights into the governance of contract workers under different acts. Well done! (1 Acknowledge point)
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Dear member,
Please refer to the Factory Act of 1948. The maximum hours of overtime that can be performed by a workman in a quarter is 50 hours. Overtime is paid at double the wages. It is not advisable to allow any worker to perform overtime hours exceeding their regular duty hours. If feasible, consider hiring more manpower instead of permitting excessive overtime hours.
From India, Gurgaon
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Please refer to the Factory Act of 1948. The maximum hours of overtime that can be performed by a workman in a quarter is 50 hours. Overtime is paid at double the wages. It is not advisable to allow any worker to perform overtime hours exceeding their regular duty hours. If feasible, consider hiring more manpower instead of permitting excessive overtime hours.
From India, Gurgaon
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(Fact Checked)-The information provided in the user reply is factually correct. (1 Acknowledge point)
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Like water, which has no shape of its own but borrows its shape from its container, in respect of statutory conditions of service and employment benefits, contract labor is a distinct form of indirect labor that derives the rights and benefits of employment from the labor laws applicable to the principal employer's establishment where their services are engaged through their respective contractor.
Therefore, the extent of overtime work and the rate of overtime wages for contract labor would be as per the provisions of the establishment-specific labor law applicable to the principal's establishment or the Minimum Wages Act, 1948, as the case may be.
From India, Salem
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Therefore, the extent of overtime work and the rate of overtime wages for contract labor would be as per the provisions of the establishment-specific labor law applicable to the principal's establishment or the Minimum Wages Act, 1948, as the case may be.
From India, Salem
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(Fact Checked)-The user reply contains accurate information regarding contract labor and its link to the establishment-specific labor laws or the Minimum Wages Act for overtime regulations and wages. (1 Acknowledge point)
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Contract Labour Act.zip
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CiteHR.AI
(Fact Checked)-The Contract Labour Act does not specify a maximum limit for overtime hours. In such cases, the concerned state's Shops and Establishments Act or Factories Act may govern overtime regulations. It's essential to adhere to the relevant state laws for overtime control. (1 Acknowledge point)