Respected seniors,
This is Ramu, working as DM-HR in a manufacturing unit at Vijayawada. My query is - We have engaged one contractor (Licensed) for the construction of factory buildings on an expansion project subject to peace rate work. The contractor is engaging the manpower for more than 12 hours in a day. Can we allow them to work more than 12 hours in a day even though it is peace rate work or restrict to 8 hours? I request the seniors kindly advise me on this issue.
With regards,
Ramu
From India, Vijayawada
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5This is Ramu, working as DM-HR in a manufacturing unit at Vijayawada. My query is - We have engaged one contractor (Licensed) for the construction of factory buildings on an expansion project subject to peace rate work. The contractor is engaging the manpower for more than 12 hours in a day. Can we allow them to work more than 12 hours in a day even though it is peace rate work or restrict to 8 hours? I request the seniors kindly advise me on this issue.
With regards,
Ramu
From India, Vijayawada
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Dear Ramu, Can you pl tell further whether the " Piece Rate " mentioned is in respect of the item-wise work assigned to the contractor or in respect of the wages paid to the contract labour?
From India, Salem
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From India, Salem
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1. You have not mentioned how the contractor is paying - is it an hourly rate, a daily rate, or a piece rate?
2. If the contractor is working for more than 8 hours without receiving overtime pay, it is illegal and exploitative.
3. The contractor is obligated to pay overtime.
From India, Thane
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2. If the contractor is working for more than 8 hours without receiving overtime pay, it is illegal and exploitative.
3. The contractor is obligated to pay overtime.
From India, Thane
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Dear Ramu ji,
You need to refer to the law relating to working hours in the Factory Act as applicable to you. You cannot have working hours for more than 48 in a week and 9 in a day.
If you are engaging any employee for more than 48 hours in a week and 9 hours in a day, you are liable to pay overtime wages at twice the rate of ordinary wages to such an employee. You also need to see the rule of restricting overtime hours under the Factory Rules as applicable in your state.
These working hours are applicable to the piece-rated employees also. But one thing I failed to understand is how the construction workers are paid on a piece-rate basis? What is the criteria? I know construction workers are paid on a measurement basis or "Hazeri" basis.
Piece-rate, measurement rate, or hazeri rate should be fixed in such a way that wages for nine hours of work should not be less than the minimum wage rate.
From India, Mumbai
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You need to refer to the law relating to working hours in the Factory Act as applicable to you. You cannot have working hours for more than 48 in a week and 9 in a day.
If you are engaging any employee for more than 48 hours in a week and 9 hours in a day, you are liable to pay overtime wages at twice the rate of ordinary wages to such an employee. You also need to see the rule of restricting overtime hours under the Factory Rules as applicable in your state.
These working hours are applicable to the piece-rated employees also. But one thing I failed to understand is how the construction workers are paid on a piece-rate basis? What is the criteria? I know construction workers are paid on a measurement basis or "Hazeri" basis.
Piece-rate, measurement rate, or hazeri rate should be fixed in such a way that wages for nine hours of work should not be less than the minimum wage rate.
From India, Mumbai
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Whether your contract with the contractor is for time cost, piece rate, lump sum, or service fees, they still come under the Contract Labour Act. The rules specify that you are responsible and liable for all non-compliances the contractor commits. Therefore, you cannot allow the contractor to deploy workers on a 12-hour basis.
From India, Mumbai
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From India, Mumbai
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Hi all,
Time Rate and Piece Rate are different. What we pay to bottom-line workers is important. In this case, the Civil Contractor is receiving payment on a piece rate basis, which is perfectly fine. However, he may be paying his workers on a time rate or piece rate. Ordinary mazoors and office staff will be on a time rate, while centering work, painters, and electricians are paid on a job basis, i.e., piece rate. However, they may, in turn, be paying their workers on a time rate.
In the case of a time rate, work is limited to an average of 8 hours a day or 48 hours a week. Any work exceeding that must be compensated at an overtime rate, which is twice the normal rate of wages. Unfortunately, there are many employers who only pay at a single rate.
For piece rate work, the law stipulates that piece rate wages cannot be lower than time rate wages. This means if a worker produces less and is entitled to payment of X according to the piece rate, while the time rate is X + Y, then the worker must be paid X + Y. If the piece rate wages amount to X + Y + Z, then the worker must receive X + Y + Z.
Currently, piece rate wages are only prevalent in certain segments. Additionally, most workers are paid either a time rate or piece rate, with a combination being very rare.
Vibhakar Ramtirthkar
9371001906
Labour Management Advisor and Union Leader.
From India, Pune
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Time Rate and Piece Rate are different. What we pay to bottom-line workers is important. In this case, the Civil Contractor is receiving payment on a piece rate basis, which is perfectly fine. However, he may be paying his workers on a time rate or piece rate. Ordinary mazoors and office staff will be on a time rate, while centering work, painters, and electricians are paid on a job basis, i.e., piece rate. However, they may, in turn, be paying their workers on a time rate.
In the case of a time rate, work is limited to an average of 8 hours a day or 48 hours a week. Any work exceeding that must be compensated at an overtime rate, which is twice the normal rate of wages. Unfortunately, there are many employers who only pay at a single rate.
For piece rate work, the law stipulates that piece rate wages cannot be lower than time rate wages. This means if a worker produces less and is entitled to payment of X according to the piece rate, while the time rate is X + Y, then the worker must be paid X + Y. If the piece rate wages amount to X + Y + Z, then the worker must receive X + Y + Z.
Currently, piece rate wages are only prevalent in certain segments. Additionally, most workers are paid either a time rate or piece rate, with a combination being very rare.
Vibhakar Ramtirthkar
9371001906
Labour Management Advisor and Union Leader.
From India, Pune
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