OT Exemption [Thread 192335]

Naval Sharma
Kindly let me know if Overtime hours is exempted for wages of the workers whose wage is less than or equal to INR 6500.00
Madhu.T.K
Right to get overtime wages is not restricted only to employees drawing a certain amount of wages but it is available to all employees who come under the definition of Factories Act, Shops and Commercial Establishments Act, Mines Act or Plantation Labour Act, as the case may be.
Regards,
Madhu.T.K
saraiya
Dear
i want to know that is it written anywhere in factory acts that employees with certain amount of salary is not entitled for overtime.......
Madhu.T.K
Definition of worker in the Factories Act is though narrow but describes one as person engaged for the manufacturing activity either directly or indirectly.In case of any dispute, however, regarding eligibility for overtime (as also any benefit available) you can take the definition of workman given in the Industrial Disputes Act. If you refer the same a workman is one who draws a salary of not more than Rs 10000. But salary for this purpose should be statutory salary, like Basic salary and dearness allowances and will not include the variables as are usually put in to make CTC. Besides, courts have given different interpretations for the term worker saying that it is not merely the designation that a person holds but the functional responsibilities that he holds that decides whether the employee is a workman or supervisor/ managerial person. As such any employee, whatever be his salary, who does not possess the right of supervising the workers by way of at least sanctioning leave, appraising the performance or initiating disciplinary action is a worker.

Therefore, it is always desirable to make the category of employees on the basis of OT eligibility by considering whether he comes under the ID Act or not.

Regards,

Madhu.T.K
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute