Working Hour and Overtime

An employee has worked overtime when their total number of scheduled hours has been exceeded. Employees in India are required to work 8 to 9 hours per day, or 48 to 50 hours per week, in accordance with the overtime rules and policies that define work hours. According to India's employment rules, any employee who puts in more time than the required number of hours is entitled to overtime pay for that time.

Meaning of Working Hour

Every adult (a person who has reached the age of 18) is prohibited from working more than 48 hours per week and more than 9 hours per day, according to the Factories Act of 1948. The spread over time shall not go over 10-1/2 hours, as stated in Section 51 of the Act. No employee should be required to work more than 48 hours per week and 9 hours per day. Any employee who works for a longer period of time is eligible for overtime pay, which is set at twice the regular wage.

Effect on Working Hours

At the federal and state levels, respectively, the Factories Act of 1948 and the applicable Shops and Establishment Act regulate employees' working hours and leave (paid and privilege leave). The government's main priority is to coordinate the working hours and leave of service industry workers with those in factories. By introducing the new labor codes, the government has made an effort to close these disparities.

Every industry would be required to abide by these labor laws. Although the respective state governments can still control working hours and leave through the Shops and Establishment Act, the publication of state rules that follow labor codes and the draft of federal regulations suggest that the state government(s) are in alignment with the federal government, particularly with regard to these issues.

Meaning of Overtime

The only voluntary overtime that is permitted is that which is agreed upon by the employee and the employer. There is a 3-hour daily maximum and a 10-hour weekly maximum for overtime. Except for labor performed on Sundays and public holidays, which must be compensated at a rate of 1.5 times the regular salary, all wages must be paid at least 1.5 times the regular rate. Only with the employee's consent and based on the same calculations, time off may be offered in lieu of compensation.

The provisions of Section 10 (overtime) of the Basic Conditions of Employment Act do not apply to employees who earn more than the current threshold amount. This implies that these workers cannot request remuneration for overtime performed or paid time off in exchange for payment. Contrary to popular opinion, the employer cannot insist that such workers work overtime without pay or make them put in the extra hours.

Night Shift Provisions

Night labor is defined as "all work which is performed during a period of not less than seven consecutive hours, including the interval from midnight to five in the morning" under ILO Convention 171. The responsible authority (in a country) decides the "period" and "specified time limit" after consulting with worker and employer organizations.

Given that night work has a detrimental impact on workers' health, the aforementioned ILO convention mandates steps for

• Safeguarding the health of employees

• Paying them fairly (night work premium).

• Offering chances for career progress

• Assuring their safety and safeguarding maternity

Women are not allowed to work at night in Pakistan under national labor law. This restriction was in accordance with ILO Convention 89, which forbade women from working at night. This norm, though, has drawn criticism for having an unfair effect on women by limiting their employment options, particularly in the manufacturing industry, which once employed the majority of night employees. These days, the tertiary/services sector employs a sizable number of night workers.

How is Overtime Computed in India?

the employment laws and labor laws in that country are still not well defined. Employees in the private sector frequently labor overtime without receiving compensation for their efforts. The Indian demonetization era is among the most well-known instances, when over 10,000 bank employees—in both the commercial and governmental sectors—were required to work past their regular hours without being paid for it.

The reporting time, working hours, and regulations for leaves of absence must all be specified in detail in the company's overtime policy. The company's compensation policy for any overtime that any employee performs must also be included in the HR policy. Even though they are legally entitled to compensation under Indian employment regulations, employees rarely request overtime pay in the white-collar industry or at the management level. However, if the business doesn't establish an overtime policy, it opens the door to future unwelcome employment issues.

For the purpose of calculating overtime in India, it is crucial for an employer to have their employment contract and company overtime policy drafted. To prevent any unneeded arguments over overtime regulations and legislation, you should choose a qualified employment attorney.

Conclusion

However, currently, with reforms to labor laws introduced as the Code on Wages 2019, Industrial Relations Code 2019, and Code on Social Security, there aren’t considerable changes related to overtime and night shift. There should have been more emphasis on shifts where work involves night work to provide better financial compensation, safety, and health, and more provisions apart from the above.

Frequently Asked Questions

Q1. What do you mean by Human capital?

Ans. The economic worth of a worker's knowledge and abilities is referred to as "human capital." In addition to qualities that employers admire, such as loyalty and punctuality, human capital also includes assets like education, training, intelligence, skills, and health.

Q2. What is wage labour?

Ans. The social connection in which a person sells their labor force to an employer under a written or informal employment contract is known as wage labor, also known as paid work, paid employment, or paid labor.

Q3. Define the term Pension?

Ans. A pension is a savings account that receives contributions throughout an employee's employment and from which payments are made to support the employee's retirement from work in the form of recurring installments.

Q4. What is Workers’ Council?

Ans. A workers' council, also known as a labor council, is a type of political and economic organization in which employees or their elected representatives, who are subject to recall at any moment, administer a company or municipality.