Hi all- just had a question regardig Overtime to be paid to employees- if the organisation has 500 people and the establishment is located in Andhra Pradesh- is there any rule or regulation which make it compulsory to pay overtime? If yes, could anyone help me with the rules?
Cheers, Vikram
From Ireland
Cheers, Vikram
From Ireland
All the basic Acts, ie, The Factories Act, Plantations Labour Act or Andhra Pradesh Shops and Commercial Establishments Act have provisions to pay overtime wages at the rate of double the rate of wages for the overtime worked.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
ITES is not exempted from the operation of labour laws. If the IT firm is registered under the State's Shops and Commercial Establishments Act, then it has to follow the rules framed under the said Act. If so, an employee who comes under the definition of "workman"/ "employee" shall be paid double the rate of salary for every hours worked in addition to the normal hours. The normal working hours may differ slightly between 8 hours and 9 hours depending upon the State legislation. In general it is eight hours.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu sir and seniors,
I was going through the minimum wages act books & references and found the below paragraph which says that whoever is getting wages as per minimum wages act, can only claim overtime payment not by those who are getting higher wages. Can you please clarify this sentence. (Minimum Wages act 1948, Sec 14)
• The employee not covered under Minimum Wages Act will not make claim for overtime under the said Act.
Municipal Council, Halta v. Bhagat Singh, (1998) 2 sec 443: AIR 1998 se 1201: (1998) 1 LLJ 815: (1998) 2 LLN 409: 1998 LLR 298 (SC).
By the above sentence, can employer get exemption from factories act 1948 on paying double the wages?
Thanks.
From India, Chennai
I was going through the minimum wages act books & references and found the below paragraph which says that whoever is getting wages as per minimum wages act, can only claim overtime payment not by those who are getting higher wages. Can you please clarify this sentence. (Minimum Wages act 1948, Sec 14)
• The employee not covered under Minimum Wages Act will not make claim for overtime under the said Act.
Municipal Council, Halta v. Bhagat Singh, (1998) 2 sec 443: AIR 1998 se 1201: (1998) 1 LLJ 815: (1998) 2 LLN 409: 1998 LLR 298 (SC).
By the above sentence, can employer get exemption from factories act 1948 on paying double the wages?
Thanks.
From India, Chennai
It is right that overtime payment as per section 14 of the Minimum Wages Act is applicable only to those who are getting minimum wages and not to employees who are getting more than what the minimum wages notification says. Municipal Council Vs Bhagat Singh (AIR 1998 SC 1201), State of Gujarat Vs Savilal H Shah [2003 (11)LLJ 641(Guj)] and many other verdicts support it. But section 14 (2) says that nothing in this Act shall prejudice the operation of section 59 of the Factories Act in any case where those provisions are applicable. Similarly, the Mines, Act, Plantations Labour Act and the Shops and Commercial Establishments Act also have similar provisions for payment of overtime wages to employees without any condition with regard to statutory minimum wages. The only condition is that supervisors and Managers are not entitled to get overtime wages. Unfortunately this is not available in the Minimum Wages Act but under the Minimum Wages Act overtime payment can be claimed even by a Manager whose salary is fixed according to minimum wages. Also note that minimum wages is fixed not only for workers but for supervisors, foremen and managers also.
Therefore, if the Factories Act makes it mandatory to pay overtime at double the rate of normal pay, it should be paid irrespective of whether he is getting wages at par with government notified minimum wages or not.
Madhu.T.K
From India, Kannur
Therefore, if the Factories Act makes it mandatory to pay overtime at double the rate of normal pay, it should be paid irrespective of whether he is getting wages at par with government notified minimum wages or not.
Madhu.T.K
From India, Kannur
I don't understand this. No managers/foreman/supervisors will get wages less than or equal to minimum wages fixed by state govt. Even permanent workmen / contract workmen are getting more than minimum wages. As per this sec 14, if management convince workmen to accept the overtime wages equal to regular wages, Will govt authorities can sue employer while checking the OT register at the time of inspection?
Once again thanking you for clarifying my doubts..!
From India, Chennai
Once again thanking you for clarifying my doubts..!
From India, Chennai
It is true that no one gets wages equal to minimum wages fixed by the government. At the same time there are a lot of instances where the workers are paid wages less than minimum wages and of course the managers paid many times higher than the minimum wages! The Act does not prevent employers from paying higher wages but it prevents paying less than that and in this exercise what happens is that lower grade employees get lesser pay and higher grade employees get high pay. At least the basic Acts like Factories Act, Mines Act, Plantation Act, Shops Act and ID Acts have restricted its application to workmen who are not supervisors though the Minimum Wages Act speak in general and covers all categories of employees.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Is there any difference between chowkidaar of factroy (covered under factory act-1948) and a chowkidaar posted at an office(not covered under factory Act-1948)
Is Chowkidaar of factory entitiled Overtime wage(beyond shift duty of 8 Hrs.) whereas office chowkidaar beyond 8 hrs.is not entitled.
As an certificate is given that overtime is given to workman who works with his own hands.In case of factory chowkidaars ,it is stated that as he does not works with hands, so he is not entitled overtime wages.Kindly clarify.
V.P.Singh
Civil Engineer,BBMB,PW Talwara.
From India, Phagwara
Is Chowkidaar of factory entitiled Overtime wage(beyond shift duty of 8 Hrs.) whereas office chowkidaar beyond 8 hrs.is not entitled.
As an certificate is given that overtime is given to workman who works with his own hands.In case of factory chowkidaars ,it is stated that as he does not works with hands, so he is not entitled overtime wages.Kindly clarify.
V.P.Singh
Civil Engineer,BBMB,PW Talwara.
From India, Phagwara
In order to claim overtime under the Factories Act, the overtime work should be within the factory premises and a worker engaged outside the factory premises for any purpose cannot claim over time. But there is nothing in the Act which distinguishes one who works with hands/ manual work and doing any other kind of work.
A chowkidar posted in the office will be entitled to get overtime as per the relevant provisions of the Shops and Commercial Establishments Act under which the Office is covered.
Madhu.T.K
From India, Kannur
A chowkidar posted in the office will be entitled to get overtime as per the relevant provisions of the Shops and Commercial Establishments Act under which the Office is covered.
Madhu.T.K
From India, Kannur
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Overtime.ppt
OverTime.xls
Overtime Form.doc