Dear All,
In my company coming under Delhi Shop & Establishment Act, We are following the practice of giving only Comp Off if a worker cadre or executive cadre do a double duty.
In Case of any festive off or national holiday, we give staff category some amount of Basic+DA+VDA based on a formula.
As per my knowledge, If a Staff cadre worker works more than prescribed work limit or On any national holiday, they are entitled for double wages based on hours.
While in executive cadre we follow the compoff policy.
Is legally this practice is correct while in terms of financial implication it is a cost saving method.
Are we face any legal complication in future if labour inspector inspect at any point of time.
Would request u to help me.
With Warm Regards
Ranjeet
From India, New Delhi
11In my company coming under Delhi Shop & Establishment Act, We are following the practice of giving only Comp Off if a worker cadre or executive cadre do a double duty.
In Case of any festive off or national holiday, we give staff category some amount of Basic+DA+VDA based on a formula.
As per my knowledge, If a Staff cadre worker works more than prescribed work limit or On any national holiday, they are entitled for double wages based on hours.
While in executive cadre we follow the compoff policy.
Is legally this practice is correct while in terms of financial implication it is a cost saving method.
Are we face any legal complication in future if labour inspector inspect at any point of time.
Would request u to help me.
With Warm Regards
Ranjeet
From India, New Delhi
Ranjeet,
Owing to some problems in the internet (I was not able to get connected to citehr only) I could not get back. Please bear with me.
Overtime work and payment thereof of employees other than those coming under the category of workmen shall be regulated by an order of the competent authority of the company or by an amendment of standing order. Normally, these will be provided in the standing orders of the company. Therefore, it is not worth to challenge the legality of OT wages or even the compensatory holidays. A measure of cost cutting approved by the employees in general shall be implemented and such step will not be questioned by Labour/ Factory department officials provided the initiative is for a short period.
Regards,
Madhu.T.K
From India, Kannur
Owing to some problems in the internet (I was not able to get connected to citehr only) I could not get back. Please bear with me.
Overtime work and payment thereof of employees other than those coming under the category of workmen shall be regulated by an order of the competent authority of the company or by an amendment of standing order. Normally, these will be provided in the standing orders of the company. Therefore, it is not worth to challenge the legality of OT wages or even the compensatory holidays. A measure of cost cutting approved by the employees in general shall be implemented and such step will not be questioned by Labour/ Factory department officials provided the initiative is for a short period.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu,
It is a policy we r not going to pay double wages while in certain provisions in Factory act or other acts they all are entiled for double wages.
If sum thing is missing from the standing order can we amend it. what is the procedure to be followed.
In my father company leaves are now maintained June to June, Whether ther had make the changes.
If in a company standing order nothing is written about the OT and now ther are not paying, what to do.
Can u give me the idea about the double wages in which condition and ctegories we have to pay. what is the legak bindation and from where these provision derived refereces etc. Just for my Knowledge.
Plz sir.
Regards
Ranjeet
From India, New Delhi
It is a policy we r not going to pay double wages while in certain provisions in Factory act or other acts they all are entiled for double wages.
If sum thing is missing from the standing order can we amend it. what is the procedure to be followed.
In my father company leaves are now maintained June to June, Whether ther had make the changes.
If in a company standing order nothing is written about the OT and now ther are not paying, what to do.
Can u give me the idea about the double wages in which condition and ctegories we have to pay. what is the legak bindation and from where these provision derived refereces etc. Just for my Knowledge.
Plz sir.
Regards
Ranjeet
From India, New Delhi
dear
if any person works more than prescribed limit of 8 hr in a day or 48 hour in a week he is entitle for OT at double rate.it is law.whatever policy you are adopting is against the law ie delhi shop and est act.however the policy you are adopting and no body is objecting than keep quite legally u can not show your exisiting policy to labour dept.
as u mentioned regarding amendment in standing orders,that can be done and standing orders can be amended but no authority will certify your standing orders if u
insert your compensatory off clause in place of OT.leave to be calculated on calendar year basis.
tks
j s malik
From India, Delhi
if any person works more than prescribed limit of 8 hr in a day or 48 hour in a week he is entitle for OT at double rate.it is law.whatever policy you are adopting is against the law ie delhi shop and est act.however the policy you are adopting and no body is objecting than keep quite legally u can not show your exisiting policy to labour dept.
as u mentioned regarding amendment in standing orders,that can be done and standing orders can be amended but no authority will certify your standing orders if u
insert your compensatory off clause in place of OT.leave to be calculated on calendar year basis.
tks
j s malik
From India, Delhi
Dear Mr.Malik,
Thanks for your reply.
Is it 8 Hrs or 9Hrs, Becoz when i am going through the provision for OT in act it is written 9 Hrs or 48Hrs in a week.
Can u explain me the policy or method that is leagally correct if employee works on their Festival Off or Weekly Off or Naqtional Holidays.
Whether in staff category, we have to give wages or in executive cadre Comp Off.
In My Father company which is a Navratna PSU, Previously adopt the policy of Calendar year while now they had adopted June to June.
If they had adopted what is the procedure they Opt for the same.
Plz Reply.
Regards
Ranjeet
From India, New Delhi
Thanks for your reply.
Is it 8 Hrs or 9Hrs, Becoz when i am going through the provision for OT in act it is written 9 Hrs or 48Hrs in a week.
Can u explain me the policy or method that is leagally correct if employee works on their Festival Off or Weekly Off or Naqtional Holidays.
Whether in staff category, we have to give wages or in executive cadre Comp Off.
In My Father company which is a Navratna PSU, Previously adopt the policy of Calendar year while now they had adopted June to June.
If they had adopted what is the procedure they Opt for the same.
Plz Reply.
Regards
Ranjeet
From India, New Delhi
OT is payable only when an employee works beyond 9 hours but as Mr Mallik said, OT is calculated from the period which exceeded 8 hours. That means, if anybody works for 9 hours a day, he cannot legally claim for OT wages at double the rate. But if he works say for 10 hours he will be entitled for 2 hours OT wages.
If an employee is asked to work on a holiday due to emergency, he shall be given compensatory holiday within a period as decided by the employer.
Regards,
Madhu.T.K
From India, Kannur
If an employee is asked to work on a holiday due to emergency, he shall be given compensatory holiday within a period as decided by the employer.
Regards,
Madhu.T.K
From India, Kannur
Dear Ranjeet,
I totally agree with Mr Mallik and Mr Madhu. Further for more clarification, of
OT & Compensatory Holidy
1. For Compensatory Holiday as defined in factory act - Section 53 (1) and (2) clearly says that where a worker is deprived of any of the weekly holiday he shall be allowed within the month in which holiday were due to him or within the two month, immediately following that month.
2. For OT as defined in factory act - Section 59 where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any week shall be entitled for overtice at the rate of twice his ordinary rate of wages. Futher for calculation min 4 hours after the full 8 hours working are being calculated for OT.
It is good if this matter are being clearly defined/described in Standing Order, (so worker are aware). For e.g. An establishment where every Saturday is 1/2 day, then if total up then 44.5 hours in a week. Even if the worker works more than 2 hours say 46.5, then also OT is not been calculated/given. Factory act clearly defined max 48 hours in a week.
With Regards
Vivek
From India, Ahmadabad
I totally agree with Mr Mallik and Mr Madhu. Further for more clarification, of
OT & Compensatory Holidy
1. For Compensatory Holiday as defined in factory act - Section 53 (1) and (2) clearly says that where a worker is deprived of any of the weekly holiday he shall be allowed within the month in which holiday were due to him or within the two month, immediately following that month.
2. For OT as defined in factory act - Section 59 where a worker works in a factory for more than nine hours in any day or for more than 48 hours in any week shall be entitled for overtice at the rate of twice his ordinary rate of wages. Futher for calculation min 4 hours after the full 8 hours working are being calculated for OT.
It is good if this matter are being clearly defined/described in Standing Order, (so worker are aware). For e.g. An establishment where every Saturday is 1/2 day, then if total up then 44.5 hours in a week. Even if the worker works more than 2 hours say 46.5, then also OT is not been calculated/given. Factory act clearly defined max 48 hours in a week.
With Regards
Vivek
From India, Ahmadabad
:-DDear Mdhu & Vivek,
Thanks for ur replies.
So finally i can derive that if an employee work on Holiday like their Festival OFF or National Holiday, weekly off they are only entitled for Comp Off. Not for double wages for that day.
But in Vivek reply it was written that only in case of weekly off we have to given CompOff.
Double wage is only calculate for Overtime that is cleared.
Now my Question is If employee works on National Holiday or on their festival Off than what to do:-
a)-Give a Comp Off.
b)-Doble Wages
c)- OR Both.
In the light of labour laws, which practice should adopt.
Plz suggest
With warm regards
Ranjeet
From India, New Delhi
Thanks for ur replies.
So finally i can derive that if an employee work on Holiday like their Festival OFF or National Holiday, weekly off they are only entitled for Comp Off. Not for double wages for that day.
But in Vivek reply it was written that only in case of weekly off we have to given CompOff.
Double wage is only calculate for Overtime that is cleared.
Now my Question is If employee works on National Holiday or on their festival Off than what to do:-
a)-Give a Comp Off.
b)-Doble Wages
c)- OR Both.
In the light of labour laws, which practice should adopt.
Plz suggest
With warm regards
Ranjeet
From India, New Delhi
For work on a holiday give him a compensatory holiday and not double the wages considering it as OT. OT is given for extra time worked over and above actual time and there is logic in giving double the rate for OT because it is for applying extra energy by the concerned employee that OT at double rate is paid whereas when a person works afresh on a holiday it is to be deemed as if he is working on a regular day and there is no need to pay at double the rate. However, for the holiday lost, he shall be given a compensatory off.
This is purely my own judgment about the situation and the employees can be convinced accordingly.
Regards,
Madhu.T.K
From India, Kannur
This is purely my own judgment about the situation and the employees can be convinced accordingly.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu,
Thanks!
But in my company, Trade union also exist which i think much more Management Friendly.
I think there is an agreement between Mgmt and Unions for the same. In march, when again settlement take place can we review it.
These people are only good of themselves but when it came to settlement they are talking about worker.
What procedure should adopt to deal with these people, as when i am working in payrolls i am facing a lot of problems.
These people never filling their leaves but enjoying full salary which i feel a wrong practice.
How to deal with these person.
Regards
Ranjeet
From India, New Delhi
Thanks!
But in my company, Trade union also exist which i think much more Management Friendly.
I think there is an agreement between Mgmt and Unions for the same. In march, when again settlement take place can we review it.
These people are only good of themselves but when it came to settlement they are talking about worker.
What procedure should adopt to deal with these people, as when i am working in payrolls i am facing a lot of problems.
These people never filling their leaves but enjoying full salary which i feel a wrong practice.
How to deal with these person.
Regards
Ranjeet
From India, New Delhi
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Compensatory Off_Shrt Leave.xls
Compensatory Off Policy.doc