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Hi, my Expert Friends,

We have a 5-day working office (Monday to Friday) with Saturday and Sunday off. We work for 9.5 hours per day. Now, if I call any employee to work on Saturday, how should I compensate them? Do I need to give them compensatory time off in the forthcoming week or pay them according to the overtime rate, or both?

For some employees, we have a 6-day working schedule, 8 hours per day. If such an employee is called to work on Sunday, do I have to give them compensatory time off in the forthcoming week or pay them according to the overtime rate, or both?

We are covered under the Shops & Establishment Act. Experts, please provide your feedback.

From India, Mumbai
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Dear Mukesh,

I believe all the employees are white-collar employees. If yes, generally they do work on Saturdays or Sundays if the workload cannot be finished. Normally, you do not need to compensate them as they come in to finish their work (Hope you are not forcing them to). If the workload is too much and these guys are working overtime, you need to add a couple more employees to the department.

From India, Pune
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Dear Mukesh,

In our company, if any of the employees come in on Saturday or Sunday, they have two options:
1) They can take a Compensatory Off in lieu of it.
2) They can encash it. We have fixed an amount as per the grade.

Note: We do not pay or provide Comp. Off to Managers and above. It is applicable only for supervisors and executives.

From India, New Delhi
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Dear Member,

If your establishment is covered under any of the State Shops & Establishment Act, then go through that Act and applicable Rules to see the definition of the employee, working hours, weekly day of rest, OT, spread over, and compensatory off provisions for your query.

R.N.Khola


From India, Delhi
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From India, Mumbai
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Dear Member,

You might be aware that the Shops Act is a State Act, so please determine which State Shops and Establishment Act is applicable in your case. Then, review the provisions suggested by me to find the answer to your query.

R.N.Khola

From India, Delhi
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I am agree with Viraj Govekar. If employees has not finished his work in 5 days he may call to come on sat & sunday. Even we also follow this...incase of deadlines of the project/s Rgds.
From India, New Delhi
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Dear All Friends, I just want to Know about Daily Accounting work in Manufacturing unit because I’m Studding in 11th. So please tell me about working accounting work.
From India, Kanpur
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Dear all, I just want to Know about whole accounting process in a manufacturing Unit e.g. made voucher, day book , Bank Book, Stock book, P & L A/c, ect.
From India, Kanpur
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Dear all,

I want to inform you that if any employee is required to work on their day off, then we must provide compensation in accordance with the relevant acts and legal requirements applicable to the company for such payments. Failure to do so may necessitate the hiring of additional manpower for the organization.

Under the Factory Act of 1948, any employee working overtime is entitled to receive double their normal rate of pay.

Thanks & Regards,
Sunil Sharma

From India, New Delhi
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Dear Friends, let's not deviate from the core question. Even in my previous company, if we worked on an off day, we received compensatory time off. This time off had to be taken within a week. Also, the allocation of such time off was at the discretion of the manager. When we consider that the work needs to be completed, sometimes the workload given may exceed what can be accomplished within a set timeframe.

There are Acts, Rules, and Regulations governing the working hours of employees. I seek clarity on legal grounds in this regard. I am currently researching this topic, and once I have more information, I will share it with you all. In the meantime, please reflect on this and help me improve my understanding.

Regards, CS Mukesh Tank

From India, Mumbai
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Hi,

It is best to have the option of compensatory time off instead of making rules for overtime payment. Employees who are coming in on Saturdays and Sundays due to business urgencies may be given time off, which must be taken within 30-45 days. These leave days cannot be accumulated as casual leave/sick leave/paid leave or encashed.

Rules and guidelines need to be formulated in a way that employees working on weekends must inform HR in advance, and this request needs to be approved by their Head of Department as well.

From India, New Delhi
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Dear Mukesh,

Answer to your queries No. 1 & 2: As per the Shops & Est Act, weekly working hours should be restricted to 48 hours, whether you operate with a 5-day or 6-day working week. With overtime, this can be extended up to 52 hours per week. Since you are working 9.30 hours daily, it totals to 47.5 hours per week, which is within the limit. Therefore, if you call any employee to work on Saturday/Sunday, it will attract overtime pay if the employee falls under the non-supervisory category. There is no need to provide compensatory time off if you pay overtime. However, many organizations manage and regulate such situations through their Attendance and Leave Policy.

All the best,

Gopal

From India, Jaipur
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Dear Members,

Mr. CS Mukesh Tank has specifically requested the members to give him clarity on legal grounds. It has also been clarified by him that his establishment is covered under the Shops & Establishment Act. However, till now, he has not provided the name of the State Shops Act applicable to his establishment.

I have not come across any State or Central Act that allows us to work for more than 48 hours in a week and 9 hours on any one day. I do not think any of the Acts allow us to work for 9.30 hours per day. If such a provision exists, then half an hour is to be considered as overtime. I have reviewed the Punjab Shops & Commercial Establishment Act, 1958, Delhi Shops & Establishment Act, and the Bombay Shops & Establishment Act, 1948, but could not find any such provision that permits us to work for more than 9 hours on any one day of the week. If any of the Acts permit working for 9.30 hours (actual working hours), kindly inform us for better understanding. If I am mistaken, please correct me.

R.N. Khola

From India, Delhi
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Dear,

If your company declares 5 days of work in a week, and any employee works more than 5 days, then the company is liable to pay overtime for the extra working days/hours.

Arup Roy
Sr. Accountant
Sathyam Procon Private Limited
Surat, Gujarat
Tel. 0261 2747008.

From India, Jaipur
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Dear Mr. Khola,

Normally, when we refer to a 9.30-hour workday, it includes the usual break time as well, as we cannot expect anybody to work continuously for 9 and a half hours in a day. I know many organizations that observe a 9.30-hour workday with a half-hour break in between in a 5-day week system. Moreover, in many MNCs, organizations, and private banking sectors, we all know that the officially stated working hours are maintained only on paper, but in reality, what is happening is different.

Thanks,
Gopal

From India, Jaipur
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In my opinion there should b e a compensatory off and laso the arrangemt of lunch and Taxi fare should b e there. Regards Bhaskar De
From India, Calcutta
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From India, Chandigarh
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Hi,

As per company policies, if an employer calls an employee to work on their weekly day off, the employee is entitled to compensatory time off or compensation. Therefore, if you need to ask an employee to work on their day off, please ensure to offer them an alternative option.

Thank you.

From India, Mumbai
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Can you quote the relevant Section of the Companies Act. I don’t think if Companies Act provides anything like it??
From India, Chandigarh
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Dear Mr. Mukesh tank You simply give them compensatory off in coming week or month. This will avoid the complexities of over time payment ( double of original remuneration).
From India, Mumbai
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Hi friends,

Thank you for your valuable time and inputs. We are a 100% law-abiding company and do not wish to violate any legal provisions. I believe that giving compensatory time off violates the Bombay Shops & Establishment Act. Hence, the correct position would be to provide them with overtime pay. I am fully aware that many companies give compensatory time off. Therefore, I would like to know under which provision of the law it is possible to offer such compensatory time off.

Regards,
Mukesh Tank

From India, Mumbai
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Dear Mukesh,

I have also gone through The Bombay Shops & Establishment Act, 1948 but could not find any provision relating to grant of compensatory off.

Regards,
R.N.Khola

From India, Delhi
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Hi friends,

I have almost completed my research and will update you all on my findings. I need to confirm the same with our consultants. Hence, you will get a rock-solid answer. But, meanwhile, my response to R.N.Khola Ji. Please refer to section 35(4) which is reproduced below:

(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment, shall be entitled to an additional holiday on the 26th January, 1st May, 15th August, and 2nd October every year. For the holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime) which he earns during the month in which such compulsory holidays fall: Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the condition that for such work, the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.

Regards,
CS Mukesh Tank

From India, Mumbai
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Dear Mukesh Tank,

You are veering off track. Here the subject matter of the thread is:

How to calculate salary and benefits for working on Saturday and Sunday

The question of National Holidays is not being discussed at all.

From India, Chandigarh
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Hi Friends,

I agree with Mr. Surendera,

The section 35 deals with leave. It states that employees will be entitled to leaves, either 5 days or 21 days. Subsection 4 says apart from the leaves mentioned in this section, 4 more leaves will be available on 26th Jan, 1st May, 15 August, and 2nd October.

Read carefully:

"Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the condition that for such work, the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.

Taking this into consideration, if any employee is called to work on Sunday, which is a compulsory holiday, the employee must be paid double the amount of the daily average wages and also given leave on any other day.

Now my friends working in a BPO Company will say that we just give our employees just a compensatory off; just check if these provisions are exempted for BPO companies.

Members, do guide me if I am wrong...

Regards

CS Mukesh Tank

From India, Mumbai
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Hi,

My contribution to what you said is that if the extra working days (weekends) were not stated in their appointment letter, and the job they are doing isn't what they ought to have finished while they were in the office, then they should be compensated.

However, you'll have to determine a specific amount to pay to every staff member on a daily basis and stick to that. Don't try to add more money for some staff if you know you won't do the same for everyone to avoid agitation.

I believe the compensation will motivate them to put in extra effort, thereby helping your company grow faster.

I hope my little contribution helps.

From Nigeria, Ibafo
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Thank you very much, friends, for all your views and inputs.

I just wanted to know the application of the Bombay Shop & Est Act on working on Sunday. I believe that one day weekly off is to be considered a compulsory holiday, similar to a national holiday. Hence, if the employees are called to work on a compulsory holiday, then the employer must pay double the average daily pay and also provide compensatory off.

Friends, please understand that if the employee is unable to complete his work within 48 hours per week, he may work additional hours. However, the Shop & Est Act imposes restrictions on weekly working hours. How can one comply with this legal requirement?

To avoid this, it is better to apply for exemptions regarding the application of these sections in your organization. This is the way to comply with the law. Friends, please keep posting your views.

Senior HR professionals, please let us know how you manage your shifts on Sundays for working?

Regards, CS Mukesh Tank

From India, Mumbai
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Hi Friends,
I would like to add one more thing further.
Please check section 14 of the Minimum Wages Act, 1948. It starts with "(1) Where an employee whose minimum rate of wages is fixed under this Act... works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess at the overtime rate fixed under this Act or under any law of the appropriate government for the time being in force, whichever is higher.

Now, in one of the Supreme Court decided cases, it was held that section 14 can attract only when Minimum Wages are fixed under the Minimum Wages Act, 1948. If the payment is made more than the minimum wages fixed under the act, then the provision is not attracted. Just check the judgment attached and give your further views.

CS Mukesh Tank

From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf Municipal_Council_Hatta_vs_Bhagat_Singh_&_Ors_on_5_February,_1998.pdf (87.0 KB, 73 views)

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Every case has to be decided based on its facts and circumstances, including the present case referred to by you. Although the local authority was scheduled under the Payment of Minimum Wages, the government has not notified any minimum wages in respect of the local authority and was covered by the Government Service Rules.

Before the applicability of the Payment of Minimum Wages Act, as discussed in the attached judgment, the first and foremost condition is that the appropriate government must fix minimum wage for that particular scheduled employment.

In the case of commercial establishments covered by the Shop and Establishment Act, the appropriate government always fixes and notifies minimum wage in almost all states.

Secondly, as clearly stated in the judgment, the Act will not be applicable where employees are receiving more than the minimum wage. However, it will be applicable where employees are receiving more under other statutory rules, such as in the present case where the government has fixed a pay scale under the Madhya Pradesh Municipal Service (Scales of Pay and Allowances) Rules, 1967.

Even if you assume that the Minimum Wages Act is not applicable, it will be covered by the Shop and Establishment Act, which clearly provides for the payment of overtime in case of excess hours of work beyond 9 hours in a day and 48 hours in a week.

From India, Delhi
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Hi Mukesh,

As you have not mentioned clearly about the nature of work in your organization. Secondly, the most important thing is to analyze if employees are coming occasionally or if the work culture is forcing them to come every weekend.

Under both circumstances, you can have the option - You can provide them an off in lieu of and tenure can be fixed, viz. Employees need to avail their leave within 30/60 days from the date of working in case they have completed their total office hours on weekends. HODs/Managers, however, can be excluded. Moreover, do add that leaves cannot be accumulated/carried forward/encashed.

We have a 5-day working office (Monday to Friday) and have Saturday and Sunday off. We work for 9:30 hours per day.

Now, if I call any employee to work on Saturday, how should I compensate him? Do I have to give him compensatory off on the forthcoming week or pay him as per overtime rate, or both?

For some employees, we have 6 days working, 8 hours per day. If such an employee is called to work on Sunday, then do I have to give him compensatory off on the forthcoming week or pay him as per the overtime rate, or both?

We are covered under the Shops & Establishments Act. Experts, please give your feedback.

From India, New Delhi
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