Dear All,

We have contract workmen working more than 50 hours monthly. As per the law, the OT shall not exceed 48 hours in a quarter. How can we show the OT on a paysheet to avoid legal issues while ensuring that both the employee and employer do not suffer? Can anybody please explain?


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Are they working 50 hours a month or working overtime 50 hours a month apart from their normal working shift?
From India, Mumbai
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KK!HR
1656

I think there is some confusion; instead of month, probably the quarter is mentioned.

The normal weekly hours of work are 48 hours (6 X 8). However, the Act further provides that the daily working hours shall not exceed 12 hours. This means every day 4 hours of overtime can be taken, but the weekly working hours shall not cross 60 hours. Thus, 48 hours (12 hours X 4 weeks) of overtime can be provided in a month. Similarly, the quarterly overtime should be restricted to 50 hours in case State Government Rules provide for it or 75 hours with permission from the State Government. No employee should continue overtime for more than 7 days at a stretch.

From India, Mumbai
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Dear Sir,

Thank you for your prompt reply. They are working more than 50 hours of overtime apart from the normal working hours in a month. Most of them are working an extra 4 hours every day. According to the law, overtime hours cannot be extended beyond 50 hours. Now, to safeguard the employees and the company's interests, is there any way we can document the overtime and pay for employees to avoid legal issues?

Please advise.

Regards,
Hanuma


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Dear Hanuma,

There is no way to hide the fact. If any employee meets with an accident during the OT hours and you hide the fact, then the situation will be complicated. If the employee is covered under ESI, it will be further complicated.

The way out is proper manpower planning and to bring down the OT hours.

Thanks & Regards,

S. K. Bandyopadhyay (WB, Howrah) CEO USD HR Solutions

From India, New Delhi
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Just because 50 hours a quarter of overtime (OT) is allowed does not mean you are allowed to make them work 12-hour shifts under the guise of paying overtime. You need to focus on stopping 12-hour shifts and double shifts. These can be exceptions, not the rule.
From India, Mumbai
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nathrao
3251

"How can we show the OT in a paysheet to avoid legal issues, while ensuring that both the employee and employer do not suffer?"

Maintaining records in a truthful manner is the safest way. OT cannot be hidden, as it is governed by the Factories Act and state amendments. Following rules ensures legal safety. Workers may be pleased with higher wages and overtime work, but it may come at the cost of health, safety, and fatigue.

Additionally, your payroll will always reflect the amounts paid and can be correlated with OT hours. Hiring temporary staff can help prevent OT from exceeding the laid-down limits. Seek permission from Factory Inspectors to the extent permissible.

Safe and legally correct documentation is the only right way to proceed.

From India, Pune
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Dear colleague,

You should not approach this forum for advice on your illegal acts. This kind of inquiry seeking advice on how to evade the clutches of the law deserves no response. Please learn to be law-compliant and seek advice through proper channels.

Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
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The solution remains with you if you can ensure that no accidents, untoward incidents, or injuries would happen to workmen while on overtime. It is certain to believe that neither you nor anyone can ensure such a thing. Therefore, it would be fair and beneficial for the industry to pay the workmen overtime legitimately.

Furthermore, overtime has become a regular occurrence where fewer workers are engaged than the actual requirement. It is essential to address this issue as paying overtime is more costly than the payment of normal wages. In the case of a temporary requirement for a certain period, you can seek permission from the Inspector of Factories & Boilers, stating that a time-bound order needs to be completed, requiring excess overtime.

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I have corrected the spelling and grammar errors in the text and adjusted the paragraph formatting for better readability. The original meaning and tone of the message have been preserved.

From India, Mumbai
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Dear Colleague,

How can one predict when an accident will occur, let alone control it while working overtime (OT)? Overtime is resorted to not only due to lack of manpower planning but also because of material shortages, delayed supply of components, deliberate absenteeism, sudden power cuts, etc. However, one must show a compliant attitude when resorting to working overtime.

Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
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