Understanding Overtime Eligibility Under Factories Act: Compliance and Regulations

Hello Seniors,

My name is Ram, working as an HR Manager in a private company. I have a query related to overtime under the Factories Act. If an executive working in a factory holding an officer grade will be eligible for overtime or not, please suggest.

Regards,
Ram
08939668933

Dear Ram,

This is totally based and decided by your management regarding the extra work done by officers. As per the provisions under the Factory Act, if any person works beyond the approved time frame in Form 11 by the factory inspector, they will be entitled to overtime (OT) payment.

First, you should consider if the person's grade/category is mentioned in the certified standing order. If so, you have to pay accordingly under the Factory Act. If not, you may pay it as ex-gratia as per prevailing practices in the present or nearby your factory area, or as per their appointment conditions.

Dear Ram,

I wholeheartedly agree with Mr. Rajesh Kumar Dubey. According to the Factory Act, any employee who works beyond the regular hours (i.e., after 8 hours) is entitled to overtime pay. However, you must review your standing orders, appointment letter, and company policies for further clarification.

Thank you.

Factories Act does not distinguish between grades. Everyone in the factory is a worker except the factory manager and occupier.

The overtime rule is very simple - double the gross rate, and it applies to all workers. So, it applies to all managers as well. There are some exemptions under section 64 and the relevant rules (100 to 102 in Maharashtra). If a person falls under that exemption, they are exempt from overtime rules (to the extent provided in the rules). Legally, everyone else is liable.

Also, check if there is any provision to the contrary in your standing orders.

Hello seniors,

My name is Ram. I am working as an HR manager in a private company. I have a query related to overtime under the Factories Act. If an executive working in a factory holding an officer grade will be eligible for overtime or not. Please suggest.

Regards,
Ram
08939668933

Factory Act and all other Labour Laws applicable to workmen. If a person comes under the category of workmen, then they will be eligible for overtime; otherwise, not.

Regards,
Ashish

A reading of Section 64 of the Factories Act may be relevant to this discussion.

As per the Factory Act, the maximum overtime in a quarter is 50 hours, but that is dependent on the exigency of work. You will have to take permission from the factory inspector, describing why you need overtime. Basically, overtime is granted generally for maintenance work; otherwise, if you are working in shifts, there is no need for overtime except due to absenteeism.

As far as officer-ranked personnel are concerned, overtime eligibility depends on the company's policy. However, you will have to pay for the extra work, whether you compensate with leave or pay in cash/kind.

Banerjee & Nathrao explained correctly. One has to check the definition under Workman and its applicability to the concerned employee. Otherwise, C/Off or equivalent can be considered.

My Dear Friends,

You should concentrate on the person who is working extra, whether they are a worker or a supervisory leader. The entitlement of overtime (OT) payment specifically relates to individuals who fall under the category of workmen. If the company's standing order differs regarding the person or definition of engagement, compensation varies.

Hi, Mr. Chandran,

Under the Factories Act, management is free to segregate and prepare a list of management staff who will be exempt from provisions such as overtime (OT) and similar matters. The rest of the population consists of workers who are eligible for OT benefits. These management staff are taken care of by being provided better work conditions and facilities compared to what ordinary workers receive.

Regards,
RDS Yadav
Labour Law Adviser

Hello seniors,

In a factory, if the 1st shift duty hours are from 7:00 A.M. to 15:30 P.M., with 0.30 (half) hours designated for lunch, and thereafter, if a worker works from 15:30 to 19:00 P.M., in such a case, they should receive O.T. for 3.50 times double pay or any other figure.

Secondly, if the 2nd shift starts from 15:00 P.M. to 23:00 P.M., with 0.30 hours allocated for dinner, but if a worker is called for a 12-hour duty from 19:00 P.M. to 7:00 A.M., what O.T. should be provided to them, i.e., 3.50 hours or 4 hours?

Thirdly, as illustrated above, in a 12-hour duty shift, should the worker be expected to give production at 1.50 times the normal rate, i.e., if the production for regular working hours is 10,000 pieces, then for the above 12-hour duty, should it be 15,000 pieces or less? Please assist.