Provident fund
sachin agarwal
(Querist) 31 January 2016
This query is : Open
This is the settled law that overtime allowances are excluded from basic wages in terms of the provident fund contribution under the act, 1952. Section 2(b) of the provident fund at has expressly excluded overtime allowances from the definition of basic wages under the provision of the act, 1952. There is genuine distinction between normal and additional working hours and such a distinction should not be made a device to deprive workers of the provident fund. Therefore, remuneration paid for additional working hours and payment of overtime allowance is not included in basic wages. That overtime has not been defined and therefore for the meaning of overtime or the definition one has to look into the dictionary meaning or the Precedents if any. According to Chambers, overtime would mean time employed in working beyond the regular hours and work done in such time of pay for such work and according to Webster law dictionary, means time in excess of the that limit or working time in excess of standard day or week. It is very much clear from the definition of various dictionaries and various opinions that overtime is something which is done not on time but thereafter.
Cases was rightly held that plucking of extra leaves within working hours was not overtime but overwork under time.
That it is also settled position that good work Reward is not overtime but overwork under time.
That the act, 1952 is for the purpose of socio economic object and the contributory provident fund scheme framed thereunder is provided for the benefits of the employees working in the factories, industries and establishments therefore the employees working there may have the economic security for his maintenance during his old-age after the retirement. Thus, the words and phrases used by the establishment for in the matter of payment of allowances, wages, etc are to be interpreted and understood so as to advance the benefits of these provisions of the bennevolent piece of legislation to the beneficiaries thereof.
