Hello All, Can someone please help me out with the Laws & rules of overtime in any organisation?
Are the consultancy services allowed, or should they have the overtime concept?
Is there any specific hour limit of overtime?
Can the overtime hrs be Coff with the employee's 8 hours of duty?
Overtime should be paid at double the per-hour rate.
Need your guidance on this.
Thankful to all the suggestion in advance
From India, Pune
Are the consultancy services allowed, or should they have the overtime concept?
Is there any specific hour limit of overtime?
Can the overtime hrs be Coff with the employee's 8 hours of duty?
Overtime should be paid at double the per-hour rate.
Need your guidance on this.
Thankful to all the suggestion in advance
From India, Pune
OT under factories act is as follows:-
1. Working more than 9 hours per day or 48 hours per week (whichever in favor of the worker) is considered as Overtime Work and to be paid at double the rate of ordinary rate of wages.
2. Let us take one example to understand above.
3. One worker has been worked for 6 days in week as follows:-
First day of the week - day off, 2nd day - 9hrs, 3rd day -absent with pay, 4th day -11hours, 5th day - 8 hrs & 6th day - 10 hrs. and 7th day- 11 hrs.
Total hours of work in the week 49 hrs. If we calculate OT on the basis of weekly 48 hours, the worker will get 1 hour OT at double the rate. But in this case the calculation will be different as follows :-
2nd day 9 hours single rate, 4th day 11 hrs - 9 hrs single & 2 hours double =4 hrs, 5th day -8 hrs single, 6th day - 10hrs - 9 hrs single and 1 hr double = 2hrs, 7th day -11 hrs - 9 hrs single and 2 hrs double = 4 hours .
On weekly basis the worker will get 48 +1 x 2 = 50 hrs payment But on daily basis the worker will get - single - 9 + 9 + 8 +9 + 9 = 44 hrs & double - 2 + 1 + 2 = 5 x 2 = 10 hrs
Therefore, the workers will get 44 + 10 = 54 hrs payment. In this case the worker is gainer for daily rate OT calculation method not on weekly rate. The worker should be paid accordingly.
This is famously know as single hour daily basis OT Calculation.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
3351. Working more than 9 hours per day or 48 hours per week (whichever in favor of the worker) is considered as Overtime Work and to be paid at double the rate of ordinary rate of wages.
2. Let us take one example to understand above.
3. One worker has been worked for 6 days in week as follows:-
First day of the week - day off, 2nd day - 9hrs, 3rd day -absent with pay, 4th day -11hours, 5th day - 8 hrs & 6th day - 10 hrs. and 7th day- 11 hrs.
Total hours of work in the week 49 hrs. If we calculate OT on the basis of weekly 48 hours, the worker will get 1 hour OT at double the rate. But in this case the calculation will be different as follows :-
2nd day 9 hours single rate, 4th day 11 hrs - 9 hrs single & 2 hours double =4 hrs, 5th day -8 hrs single, 6th day - 10hrs - 9 hrs single and 1 hr double = 2hrs, 7th day -11 hrs - 9 hrs single and 2 hrs double = 4 hours .
On weekly basis the worker will get 48 +1 x 2 = 50 hrs payment But on daily basis the worker will get - single - 9 + 9 + 8 +9 + 9 = 44 hrs & double - 2 + 1 + 2 = 5 x 2 = 10 hrs
Therefore, the workers will get 44 + 10 = 54 hrs payment. In this case the worker is gainer for daily rate OT calculation method not on weekly rate. The worker should be paid accordingly.
This is famously know as single hour daily basis OT Calculation.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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