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truptikanekar   06 February 2015

Substituting overtime with extraday

Respected Sir,


Good Evening!

I am working in a automobile dealership. we are registered under shop and establishment act and factories act as well. If a employee works for a overtime of 4.5 hours we give him half day extra instead of giving him overtime for those many hours. please let me know if it permissible under law. If it is not permissible then please give me valid documents which I can show to my management.

 

Thanking all in advance

Trupti



Learning

 3 Replies

Kumar Doab (FIN)     06 February 2015

The employer has to follow the enactments and rules prescribed in length and spirit.

 

E.g. ( name of the state) Shops and Commercial establishments Act and various forms/registers prescribed under  ( name of the state) Shops and Commercial establishments Rules................and in such registers the OT is to be properly recorded...................

The payment of OT has to be alongwith payment of wages on the usual pay day...................

Monthly wages/26*8*No. of hours*2

The OT may be separately shown in salary wage slip and compliance to Payment of Wages Act;13A/Min.Wages Central Rules 26(3,4) may also be ensured...

 

A local Labor Law Consultant/Law Firm can advise and handle such matters...

1 Like

truptikanekar   07 February 2015

Dear Sir,

 

That means we cannot give extra day for overtime done by employees. we have to pay them double the wages that we pay. because if a employee is paid 500 per day. That 500 is been paid by company only for 8  hours. now if he does OT for another 4hours giving half day extra means we are not paying him double. we have to give him one full day extra for 4 hours of OT so that this payment is doubled.

 

Regards,

 

Trupti

Kumar Doab (FIN)     07 February 2015

Under various enactments and rules for OT double wages/compensatory off/substituted holiday etc are provided...................

If it is your responsibility to complete the time keeping/registers.................don't err.

The employers are known to push the HR personnel/admin etc forward to face the consequences in case of error.....  


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