Is it possible to stop deduction of overtime hours?
DKTAZILANOM9909
(Querist) 23 June 2013
This query is : Resolved
We are working in a PSU. Our employer is deducting overtime hour in a week if we take earn leave or sick leave in another days of that week. Is it the right of our employer? If no, on what ground we can demand to stop deduction of that overtime hours.
KUMAR JAGADEESAN
(Expert) 24 June 2013
As per section 59 of the Factories Act 1948 overtime is payable if a person works for more than 9 hours a day or for more than 48 hours in a week he shall be entitled to OT.
Pl.refer to the certified Standing orders of the company and look into the provisions of the same with reference to OT computation and payment which may be favourable in which case such provisions would apply. If there is an agreement with the labour union it may also be referred to.
On a plain reading the OT shall accrue only if a workman works for more than 48 hours in a week. In computing such OT then leave taken shall naturally be omitted unless such OT occurs on the first leg of the provision ie working more than 9 hours in a day.
In the absence of any further details we can not answer the query with certainty.
J.KUMAR
Advocate
Hyderabad
Kumar Doab
(Expert) 24 June 2013
Mr. Kumar J has given valuable advice. Kindly follow it.
Earned leave, sick leave up to permissible limits is paid leave and leave and OT is to be well defined in policies of the company and such policies should be circulated to employees. It is also defined in Factory Act, Shops and Establishments Act, Standing Orders, Contract of appointment, agreement with the management…………………
The concerned employees may sit with/write to the concerned personnel in HR and seek clarification.
Usually such matters are not left unanswered/unattended.
Based on explanation/justification of the company employees may proceed further.
If the need be the matter can also be addressed thru Employee’s union, Works committee, Grievance redressal mechanism………….
Rajendra K Goyal
(Expert) 24 June 2013
Agree with the expert Kumar Doab Ji. No more to add in the available facts.
DKTAZILANOM9909
(Querist) 24 June 2013
Our HR Manual says below :
a) The overtime work is the work done beyond the prescribed normal hours of work.
b) Normal hours of work are fixed for a day as well as for a week. There may thus be daily overtime as well as weekly overtime.
c) Whereas there is difference in provisions relating to normal hours of work in a day, normal weekly hours under the existing enactments have generally been fixed at 48.
d) Payment of overtime wages is regulated in accordance with the provisions of settlements with the recognised unions of respective units and the relevant statute as may be applicable.
The mode of calculating the hourly rate of overtime wages is as under :
i) In respect of workmen who work 48 hours a week, the hourly rate will be calculated as follows :
BP + DA + Special Allowance /
208 hours
Our union did an agreement how the hourly rate will be calculated as above.
Our Standing order says “Subject to the provisions of the factory act, 1948 all or any of the workmen of the company may be required to work overtime.”
Our sick leave or earn leave rule didn’t specify any word of reduction of overtime hours for availing sick/earn leave.
Our HR Management gave explanation that for taking sick/earn leave in a week by a employee that employee was not completing 48 hours duty in that week. So that employee will get overtime hours after completing 9 hours duty as normal hours of duty in a day i.e. if that employee did 8 hours overtime in a day after completing his normal 8 hours duty in that day, he will get 7.5 hours overtime as he has to complete 9 hours normal duty on that day though our duty hours is fixed as 8 hours in a day and 48 hours in a week.
Sir, now is it possible to say that our Management is doing wrong of deducting overtime hours?
