According to Section 59 of the Factories Act, 1948, the worker working more than 8 hours is entitled to overtime wages, and such wages shall be paid at double the rate. However, in our company, there is a policy of giving Comp off for such extra work. So, is this right as I will get only a single payment, and that too in a non-cash nature? Are there any legal cases, laws, or judicial pronouncements relating to this issue? Please, I need your help on this issue.
From India, Chennai
Acknowledge(0)
Amend(0)
2From India, Chennai
Acknowledge(0)Amend(0)
Dear Narayanan, you have not mentioned your Designation/Nature of Duties Performed, Details about your Establishment/Factory
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Law is clear on Overtime.
Double the rate of ordinary wages.
The wordings of the Act are clear and unambiguous.
Extra wages for overtime.—
(1) Where a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages. 1[(2) For the purposes of sub-section (1), “ordinary rate of wages” means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of foodgrains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work
a plain reading of the wordings of the section make it clear .
Read Sec 53 of the Factory Act for understanding Compensatory Act.
Proposition is clear.Over time means double wages for the number of hours.
Limits of OT are also stipulated.
From India, Pune
Acknowledge(0)Amend(0)
Double the rate of ordinary wages.
The wordings of the Act are clear and unambiguous.
Extra wages for overtime.—
(1) Where a worker works in a factory for more than nine hours in any day or for more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages. 1[(2) For the purposes of sub-section (1), “ordinary rate of wages” means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of foodgrains and other articles, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work
a plain reading of the wordings of the section make it clear .
Read Sec 53 of the Factory Act for understanding Compensatory Act.
Proposition is clear.Over time means double wages for the number of hours.
Limits of OT are also stipulated.
From India, Pune
Acknowledge(0)Amend(0)
Dear colleague,
As per the provisions of the F.A., you cannot substitute O.T. with compensatory off. For O.T. hours, you have to pay at double the rate, and for working on a weekly off, the same has to be compensated by giving compensatory off, which should be given on or before the 10th working day.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)
As per the provisions of the F.A., you cannot substitute O.T. with compensatory off. For O.T. hours, you have to pay at double the rate, and for working on a weekly off, the same has to be compensated by giving compensatory off, which should be given on or before the 10th working day.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)
I do agree with Mr. Nathrao & Mr. Vinayak Nagarkar that overtime shall be paid at double the rate. But we need to understand from the perspective of the establishment that has adopted it as a policy. Working on an off-day also attracts payment under overtime but is compensated with Compensatory-off for such extra work.
There is nothing wrong with substituting extra leave. In my opinion, the workman/workmen should refer the matter to the Labour Office/Factory Inspector for interpretation.
From India, Mumbai
Acknowledge(0)Amend(0)
There is nothing wrong with substituting extra leave. In my opinion, the workman/workmen should refer the matter to the Labour Office/Factory Inspector for interpretation.
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you for the reply, experts. I would like to know one thing: is it legal to substitute overtime with comp time off? Are there any provisions in the Factories Act that outline the process for the discharge of overtime? Does the Factories Act mention comp time off, aside from Section 53? Any specific section numbers or judicial pronouncements on this matter would be greatly appreciated.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Dear Mr. Narayanan,
I beg to differ with the interpretation of Mr. Mohanty on OT and Comp off. The relevant provisions lend no different scope other than paying OT at double the rate and no substitution by comp off. We are not discussing right or wrong but what is provided by law. There is also no question of paying OT for working on the weekly off under the provisions except giving substituted off.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)
I beg to differ with the interpretation of Mr. Mohanty on OT and Comp off. The relevant provisions lend no different scope other than paying OT at double the rate and no substitution by comp off. We are not discussing right or wrong but what is provided by law. There is also no question of paying OT for working on the weekly off under the provisions except giving substituted off.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Mr. Vinayak Nagarkar,
Is there any case law or pronouncement in this regard which specifically provides that OT cannot be substituted for comp off? It would be of great help as I will have a reference in this regard.
Regards
From India, Chennai
Acknowledge(0)Amend(0)
Is there any case law or pronouncement in this regard which specifically provides that OT cannot be substituted for comp off? It would be of great help as I will have a reference in this regard.
Regards
From India, Chennai
Acknowledge(0)Amend(0)
Law clearly states when OT is to be given and when compensatory time off is to be provided. OT and compensatory time off are not comparable in any manner, and they are not substitutes for each other.
Seeking a court order on this matter is unnecessary as no court will issue a judgment in violation of the clear law on the subject. Employers may attempt to save money by using such tactics, capitalizing on the ignorance of workers. It is important to be cautious as HR will address any violations.
Please let me know if you need any further assistance or clarification.
From India, Pune
Acknowledge(0)Amend(0)
Seeking a court order on this matter is unnecessary as no court will issue a judgment in violation of the clear law on the subject. Employers may attempt to save money by using such tactics, capitalizing on the ignorance of workers. It is important to be cautious as HR will address any violations.
Please let me know if you need any further assistance or clarification.
From India, Pune
Acknowledge(0)Amend(0)
True, Mr. Nathrao,
But I would like to check it from all aspects. In other countries, there is an act called the Fair Labor Standards Act, which talks about this issue. I would like to know if there is any Indian law in this regard or any other judicial cases related to it.
From India, Chennai
Acknowledge(0)Amend(0)
But I would like to check it from all aspects. In other countries, there is an act called the Fair Labor Standards Act, which talks about this issue. I would like to know if there is any Indian law in this regard or any other judicial cases related to it.
From India, Chennai
Acknowledge(0)Amend(0)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.