Dear Sir/Madam,
I work as an HR in an IT firm with fewer than 30 employees. We used to pay the employees an extra salary based on their hours of work when they stayed in the office to fix code issues based on the gross salary.
These employees include the manager cadre also.
Recently, management told us that instead of paying an extra amount, we can do a compoff. In India, we won't pay extra payments to managers. How should we handle this situation? I feel guilty that I didn't research this before and report it to them. Kindly guide. Now, I'm supposed to create a policy.
Thanks and Regards,
From India, Madras
4I work as an HR in an IT firm with fewer than 30 employees. We used to pay the employees an extra salary based on their hours of work when they stayed in the office to fix code issues based on the gross salary.
These employees include the manager cadre also.
Recently, management told us that instead of paying an extra amount, we can do a compoff. In India, we won't pay extra payments to managers. How should we handle this situation? I feel guilty that I didn't research this before and report it to them. Kindly guide. Now, I'm supposed to create a policy.
Thanks and Regards,
From India, Madras
Overtime payment for extra hours worked is a mandatory provision under labour law in India. But that does not apply to managers who have managerial powers. Though OT at double the rate is applicable for extra hours beyond 48 hours a week, in respect of establishments which work for less than 48 hours in a week, it should be paid beyond the scheduled working hours. If you have 9 hours per week and 45 hours per week, then overtime should be paid for each hour exceeding 45 hours per week.
Compensatory off is available for working on holidays, and that also along with overtime payment. There is no provision under the labour law which says that each hour extra worked shall be accumulated and a compensatory holiday equal to that extra hours worked shall be given to the employees. Therefore, if the employees agree that instead of getting paid for the extra hours they work they get a compensatory off then you can go ahead with it. It should be introduced after taking the employees in to confidence. It may be acceptable to those who would like to have long weekends, but not fair for those who needs more take home money.
From India, Kannur
Compensatory off is available for working on holidays, and that also along with overtime payment. There is no provision under the labour law which says that each hour extra worked shall be accumulated and a compensatory holiday equal to that extra hours worked shall be given to the employees. Therefore, if the employees agree that instead of getting paid for the extra hours they work they get a compensatory off then you can go ahead with it. It should be introduced after taking the employees in to confidence. It may be acceptable to those who would like to have long weekends, but not fair for those who needs more take home money.
From India, Kannur
Dear Madhu sir,
Thank you for your guidance.
I understand,from the message that as per the labor law overtime payment is mandatory as per the labor law in India.
But I got a message that,"According to the Kerala Shops and Establishment Act, IT companies are exempt from overtime and spread-over regulations as per the state government's notification under the IT Rules, 2002. Therefore, employers are not required to pay extra for overtime work in IT companies. However, compensatory offs are applicable to all companies, and there are no restrictions for employees to avail themselves of comp-off".Is this statement true
From India, Madras
Thank you for your guidance.
I understand,from the message that as per the labor law overtime payment is mandatory as per the labor law in India.
But I got a message that,"According to the Kerala Shops and Establishment Act, IT companies are exempt from overtime and spread-over regulations as per the state government's notification under the IT Rules, 2002. Therefore, employers are not required to pay extra for overtime work in IT companies. However, compensatory offs are applicable to all companies, and there are no restrictions for employees to avail themselves of comp-off".Is this statement true
From India, Madras
Though the concept of 'compensatory off' in lieu of OT payment is not recognised under Indian Labour legislations but some sort of 'french leave' kind of adjustments are in vogue in many establishments, at least in 'shop floor levels' or 'HOD' levels if not at the Company level as a policy. I remember in our Co. we adopted this method at HOD levels which is not accounted in the legitimate leave a/cs such as PL/EL. However I know in some establishments it's accommodated by converting those OT hours in the form of special CL This is being operated as some sort of working arrangements among the HODs and the colleagues in the downstream. Common among supervisors upwards, if not at workmen levels where either OT or certain Incentive scheme (in lieu of OT wages), wherever possible on 'piece rate' basis are being followed with the tacit working arrangement with workmen or unions.
However I believe no legal authorities going to interfere if any estt. initiates formulating a leave category for managerial personnel as a compensation tool for extra hours of work. But fact remains the first choice for employees going to be monetary compensation or in kind like picnic, foreign tours etc.
From India, Bangalore
However I believe no legal authorities going to interfere if any estt. initiates formulating a leave category for managerial personnel as a compensation tool for extra hours of work. But fact remains the first choice for employees going to be monetary compensation or in kind like picnic, foreign tours etc.
From India, Bangalore
Your understanding that IT companies are exempt from overtime and spreadover regulations is wrong. The IT policy grants permission of flexi timing, permission to engage women during night etc, and there is no dilution with regard to working hours. It is due to general perception that IT is an industry beyond the scope of labour laws, and it is because of that wrong perception that employers and letting the employees work for 10 to 12 hours a day without paying overtime wages. The employees are equally unaware of the fact that they are just workmen coming under the scope of Industrial Disputes Act. It is because of this wrong interpretation of law that they do not demand overtime wages also.
From India, Kannur
From India, Kannur
Realistically majority of employees of IT/ITES general perception is that they are not 'workmen' categories as they are performing their routine using/in front of computers/laptops. That apart there is no popular unionised coverage excepting some activities by few groups and apex level organisations not spread through bottom level cadres. Moreover the flexi timings & WFH working arrangements. This kind of approaches must be the cause of this non-existence OT regime also.
From India, Bangalore
From India, Bangalore
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