An Introduction to Overtime in India

Posted on by

By A&A LAW

Overtime refers to the time worked in excess of ones’ regular working hours which, in India, is eight to nine hours per day and forty eight to fifty hours per week, depending upon the establishment one is employed under. If a person works for longer than the regular working hours, that person is eligible to receive remuneration for that period, which will be twice the persons’ normal wage.

Overtime Laws in India

Several statutes regulate overtime and overtime payment, and different legal acts provide for respectively different periods of working hours. However, the working hours prescribed under the Factories Act, 1948 is taken as a standard period. Under Section 51 of the Factories Act, employees are not supposed to work for more than 48 hours in a week, and under section 59, for not more than nine hours a day. The time worked in excess of these 48 hours per week and nine hours per day will be counted as overtime under the Act, and will require the employer to pay workers twice the standard wage.

Section 14 of the Minimum Wages Act, 1948 states that after an employee is paid his or her minimum wage for a fixed period, they are required to be paid extra as an overtime rate.

Under section 33 of the Mines Act, 1952 if any mine worker works for more than nine hours above the ground and more than eight hours below it in a day or works for more than 48 hours in a week anywhere, whether above or below, he or she is entitled to be paid twice the ordinary wage for the extra time that was worked. Also, the act does not allow anyone to work for more than ten hours in a day, inclusive of overtime under Section 36.

Under section 17 and 18 of the Bidi and Cigar Workers (Conditions of Employment) Act, 1966, no one is to work for more than ten hours a day and fifty-four hours a week, including overtime. Similarly, under the Plantation Labour Act, 1951, if one works for more than the normal number of hours, he or she is to get overtime wages.

Professional Service_CB icons_2015RELATED: Corporate Establishment
Overtime Laws for Women and Children

The Factories Act, 1948 restricts the employment of women between 7:00 pm and 6:00 am, which can be relaxed by the Chief Inspector of factories in certain cases. If such a relaxation of stipulated working hours exceeds the normal period of working hours, employees will be eligible for overtime compensation. Even then, this relaxation is still time sensitive, that is, women cannot be required to work between 10:00 pm to 05:00 am.

Under the same Act, Section 75 specifies that no child below 14 years of age can be employed in any factory. A child above fourteen who is eligible to work in a factory cannot be allowed to work for more than four and a half hours in a day and cannot work between 10:00 pm and 6:00am. In addition, a female child is not allowed to work in any factory, except between 8:00 am and 7:00 pm.

Related Link Icon-IBRELATED: India Regulatory Brief: Maternity Leave to Increase to 26 Weeks and New FDI Rules for Non-Banking Finance Companies
Further Observations

It is seen that in many employment agreements, there is a clause, which states that the workers must/may be required to work overtime. However, working overtime should be voluntary and not forced through an agreement. It should be the employee who should decide whether they want to do overtime or not.

Where the employer asks for overtime, it should generally be in special circumstances, such as to meet the sudden increase in demand. Even in that case, the employees should not be forced to do overtime.

Every establishment should have a register of overtime, containing the details of the worker, the extra time he or she has given to work, and the calculation of overtime amount due to be paid to the worker.

About Us

A&A LAW is a full service law firm, offering comprehensive legal services in all major areas of law. The firm offers contentious and non-contentious legal services to clients. The non-contentious services include strategic planning, providing legal opinions, preparing documents, and conducting negotiations. The contentious services include arbitration, representation of clients in court hearings at all levels, and enforcement of court judgments and arbitral awards. In addition, they provide services for commercial & non-commercial litigation and corporate governance. The combined experience of the firm’s professionals is over sixty two (62) years, spanning across the world. A&A LAW have worked with industry leaders in the field and have delivered as per their requirements.

Related Reading-IB

 

 

An Introduction to Doing Business in India 2015 (Second Edition)
Doing Business in India 2015 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes. We discuss a range of pertinent issues for foreign businesses, including India’s most recent FDI caps and restrictions, the key taxes applicable to foreign companies, and how to conduct a successful audit.

IB Nov issue smallUsing India’s Free Trade & Double Tax Agreements
In this issue of India Briefing magazine, we take a look at the bilateral and multilateral trade agreements that India currently has in place and highlight the deals that are still in negotiation. We analyze the country’s double tax agreements, and conclude by discussing how foreign businesses can establish a presence in Singapore to access both the Indian and ASEAN markets.

 

Passage to India: Selling to India’s Consumer Market
In this issue of India Briefing magazine, we outline the fundamentals of India’s import policies and procedures, as well as provide an introduction to engaging in direct and indirect export, acquiring an Indian company, selling to the government and establishing a local presence in the form of a liaison office, branch office, or wholly owned subsidiary. We conclude by taking a closer look at the strategic potential of joint ventures and the advantages they can provide companies at all stages of market entry and expansion.

Leave a Reply

Your email address will not be published. Required fields are marked *

Never Miss an Update

Subscribe to gain even better insights into doing business throughout the India. Subscribing also lets you to take full advantage of all our website features including customizable searches, favorites, wish lists and gift functions and access to otherwise restricted content.

Scroll to top