Dear Sir,
I would like to know how to calculate overtime. For example, the shift time is from 08:30 a.m. to 17:00 p.m., including a half-hour lunch break and two tea breaks of 10 minutes each.
Now, if someone arrives at 07:00 a.m. at our request and leaves at 18:00 p.m., we are currently paying them 2.5 hours of overtime. Is this the correct process, or should we consider only 1 hour?
Best regards,
Parimal
From India, Ahmadabad
Acknowledge(0)
Amend(0)
4I would like to know how to calculate overtime. For example, the shift time is from 08:30 a.m. to 17:00 p.m., including a half-hour lunch break and two tea breaks of 10 minutes each.
Now, if someone arrives at 07:00 a.m. at our request and leaves at 18:00 p.m., we are currently paying them 2.5 hours of overtime. Is this the correct process, or should we consider only 1 hour?
Best regards,
Parimal
From India, Ahmadabad
Acknowledge(0)Amend(0)
Hi Parimal,
I presume your working hours are 8.30 hours per day, including the lunch break. If that is the case, any employee who works more than 8 hours per day (excluding the lunch break) is eligible to get their overtime paid. So, in your case, yes, you are right that you would have to pay him 2.5 hours of overtime daily.
But, one question arises: if you have fixed shift duties, why is an employee coming in early? Is he doing it every day as a routine? If so, I guess you need to have his Head of Department justify why.
Just because an employee is happy to come in early and stay late does not automatically mean that management should pay for the overtime. However, if there is justification that productive work is being done, then there is no harm in paying and approving such overtime.
Ukmitra
From Saudi Arabia, Riyadh
Acknowledge(0)Amend(0)
I presume your working hours are 8.30 hours per day, including the lunch break. If that is the case, any employee who works more than 8 hours per day (excluding the lunch break) is eligible to get their overtime paid. So, in your case, yes, you are right that you would have to pay him 2.5 hours of overtime daily.
But, one question arises: if you have fixed shift duties, why is an employee coming in early? Is he doing it every day as a routine? If so, I guess you need to have his Head of Department justify why.
Just because an employee is happy to come in early and stay late does not automatically mean that management should pay for the overtime. However, if there is justification that productive work is being done, then there is no harm in paying and approving such overtime.
Ukmitra
From Saudi Arabia, Riyadh
Acknowledge(0)Amend(0)
Primal,
As per Section 54 of the Factories Act 1948, no worker is allowed to work more than 9 hours in a day. However, as per Section 56, the spreadover limit is 10.5 hours/day. That means the overtime permitted is 2.5 hours in a day only. Overtime means working over and above the normal working hours or shift.
In your case, an employee cannot leave before their shift timings unless permitted to do so. In that case, Section 54 will be applicable.
M.N. Sahu
GM (HR)
From India, Vadodara
Acknowledge(0)Amend(0)
As per Section 54 of the Factories Act 1948, no worker is allowed to work more than 9 hours in a day. However, as per Section 56, the spreadover limit is 10.5 hours/day. That means the overtime permitted is 2.5 hours in a day only. Overtime means working over and above the normal working hours or shift.
In your case, an employee cannot leave before their shift timings unless permitted to do so. In that case, Section 54 will be applicable.
M.N. Sahu
GM (HR)
From India, Vadodara
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
SAMPLE Employee Attrition Calculation sheet for FY 09-10 .xls
Employee's Compensation Act-2009.pdf
Amended Labor Laws.doc