In India, we often see lights in the office burning late into the night and the factories making noise past the set standard hours. For people with jobs in India, overtime is not a choice; it is an expectation of the boss. It is normalised to a point when any of your colleagues question excessive overtime, you seem to be surprised. Yet, only a few are compensated fairly for all the extra work put in. Indian law has set clear-cut boundaries on how overtime works and how employees should be compensated for the extra hours.
Understanding the legal protections against unfair overtime practices is necessary for all workers to safeguard themselves from exploitation. Let us take a closer look at the legislation governing overtime in India and what would happen if the employer doesn’t comply with the laws.
LAWS GOVERNING OVERTIME IN INDIA: WHAT SHOULD YOU KNOW?
The Indian government has taken measures to protect workers in India from excessive overtime. There are prime legislations that regulate overtime in India, such as the Factories Act 1948, the Tamilnadu Shops and Establishment Act, 1947, the Minimum Wages Act, 1948, the Building and Other Construction Workers Act of 1996, The Code on Wages, 2019 etc.,
- THE FACTORIES ACT, 1948: Section 56 asserts that any employee working in a factory should not work more than 10.5 hours, including the rest period for the day. The Chief Inspector has the power to extend the spread up to twelve hours [1]. Section 59 talks about the extra wages that should be given for overtime: “Where a worker in a factory works for more than nine hours in any day or more than forty-eight hours in any week, he shall, in respect of overtime work, be entitled to wages at the rate of twice his ordinary rate of wages”[2].
- THE TAMILNADU SHOPS AND ESTABLISHMENT ACT, 1947: Under this act, Section 9 states that “no person employed in any shop shall be required or allowed to work therein for more than eight hours in any day and forty-eight hours in any week”. It also mentions that any person may be allowed to work overtime only if it does not exceed 10 hours in a day and 55 hours in a week, subject to proper payment of wages for work done during overtime [3].
- THE MINIMUM WAGES ACT, 1948: Section 14 of the act ensures that every worker gets paid twice their regular wage mentioned in the code for every hour or part of the hour they worked in excess [4].
- THE BUILDING AND OTHER CONSTRUCTION WORKERS ACT 1996: The act applies to building and construction workers. Section 29 of the act clearly mentions that if a building worker works more than a normal working day, they are entitled to receive twice their standard rate of wages [5]. This act applies to construction workers.
WHAT HAPPENS IF THE EMPLOYER DOESN’T COMPLY WITH OVERTIME LAWS?
The Employer who doesn’t comply with the overtime laws will have to face huge fines and imprisonment. Under the Factories Act, 1948, non-compliance by the employer would lead to the payment of a fine up to Rs. 1,00,000 and imprisonment up to two years. If the violation is continuous, then there will be an additional daily fine of Rs. 1000 until the compliance is done [6]. Under the Tamilnadu Shops and Establishment Act, 1947, Section 45 states that anyone contravening with the overtime regulations mentioned under the act “shall be punishable for a first offence, with fine which may extend to five thousand rupees and for a second or subsequent offence, with fine which may extend to ten thousand rupees” [7]. Overtime work should not be forced upon workers; it should be done voluntarily by them.
Regarding the private sector, HR policies and employment agreements should contain clauses about overtime and specified payment for it. The HR policy must comply with the laws prescribed by the Indian Government. They must also be in compliance with the state laws where the company is located. If there are no proper overtime policies in the company, it will lead to unwanted disputes.
CONCLUSION:
The problem here is not the laws; the actual enforcement remains an issue. A significant number of workers, especially in the informal sector, are unaware of the rights that are guaranteed to them. In many companies, “clocking out on time” is viewed as a lack of dedication. Furthermore, there is a constant rise in unemployment, and people waiting in the queue to replace one another creates fear among workers about asserting their rights. Creating awareness of labour rights, stringent penalties for non-compliance, and a cultural shift toward valuing productivity over long hours could lead to a healthier workforce and a more sustainable work culture in India. So, next time you’re asked to stay late, remember: the law is on your side.
AUTHOR:
Saraswathy Thogainathan, 5th year BBA. LL.B (Hons.), Saveetha School of Law, Chennai