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THE FACTORIES ACT, 1948

1.    Who are the certain employees in a factory who are not entitled to overtime for working beyond duty hours. Should any records in respect of such employees be kept?

 

Solution:

 

The persons who hold the position of supervision or management or are employed in confidential position in a factory and who are drawing wages more than the limit for applicability of the payment of Wages Act, 1936, which at present is Rs. 10,000/- PM, are not entitled to overtime wages, in respect of overtime work performed by such employees. A list of such persons deemed to hold such positions by designation have
been given in the rules framed under section 64 of the Factories Act, 1948 (rules 81 & 82 of the Delhi Factories Rules, 1950)

 

As per provisions of rule 83 of the Delhi Factories Rules, 1950, framed under this section a List giving names and designation of the persons who hold the position of supervision or management and confidential position in a factory is required to be maintained and produced on demand by inspector of Factories, whenever required.

 

LLR -May- 2012

 

2.    What is the provision for compensatory holidays?

 

Solution:

 

Compensatory holidays which are regulated under section 53 of the Factories Act, 1948 are given to a workers, who are deprived of any of the weekly holidays under provisions of sub-section (1) of section 52 of this Act, as a result of passing of an order or making of a rule under the provisions of this Act, exempting a factory or its workers from the provisions of section 52 of this Act.

 

 

3.    How many days will be treated as leave when an employee applies for leave on Saturday and joins on Tuesday? In between there is a Sunday, whether it will be treated as two days or three days?

 

Solution:

 

In this case, it would be treated as Leave with wages for two days. In this connection, may please refer to Explanation 2 appended after sub-section (1) of section 79 of the Factories Act, 1948, according to which leave with wages admissible under this section is exclusive of all holidays, whether occurring during or either end of the leave period.

 

 

4.    How the overtime is to be calculated - whether the month will be treated as of 26 days or 30 days?

 

Whether prior permission of the Authorities is required when the workers are also ready to work for overtime?

 

Is the employer under an obligation to provide any overtime slip to the workers working for overtime?

 

Solution:

 

a)    If number of actual working days in a month excluding holidays are 26 days, the normal rate of wages per day would be calculated by dividing the monthly rate of wages (including 'allowances but excluding bonus and overtime wages) by 26, for calculation of overtime wages.

 

b)    Prior written permission of the Chief Inspector is required before detaining workers for overtime work, even if workers are ready for overtime work. However, workers who are engaged for urgent repairs or. are employed in 'certain processes in specified industries, which are exempted from some of the provisions of workinghours, are entitled to perform limited overtime, subject to the compliance of conditions mentioned in the State Factories Rules framed under section 64 of the Factories Act, 1948.

 

c)     Overtime slips in prescribed Form No. 10 (a) duly filled up and signed by the factory manager or authorized person, are required to be provided to the workers immediately after completion of overtime work, as per requirements of rule 78-A of the Delhi Factories Rules, 1950. For other States/UTs, may please refer to the State Factories Rules framed under section 59 of the Factories Act, 1948.

 

 

5.    Management of our industrial establishment has a policy to encash the earned leave by the end of the month, which is accumulated by the employees which ensures the regularity. Is there any violation of law?

 

Solution:

 

There is no provision for encashment of Annual Leave with wages to workers, without availing the leave, while in service, even with the consent of the Management. A worker is entitled to wages, for the leave allowed and availed by him/her, under the provisions of the Factories Act, 1948. In case of discharge, dismissal from service, quitting employment, superannuation or death while in service, he/she is entitled to wages, in lieu of the quantum of the leave to which, he/ she was entitled, immediately before such discharge, dismissal, quitting of employment. superannuation or death. For calculating the amount of salary in lieu of the-admissible leave and the number of days of leave with wages availed by a worker, please refer to the provisions of sections 79 and 80 of the Factories Act. 1948. which are self-explanatory.

 

6.    Who are the employees in the factory not entitled to overtime?

 

Solution:

 

The persons holding the position of supervision or management or holding confidential position, as defined/prescribed in the State Factories Rules (rules 81, 82 & 83 in the Delhi Factories Rules, 1950) or so declared by the Chief Inspector of Factories (under section 64 of the Factories Act, 1948), whose ordinary rate of wages exceeds the limit laid down in the Payment of Wages Act. 1936 (which at present is Rs.10.000/ -P.M.) are not entitled for overtime wages.

 

7.    Some of the workers, who are working in the factory, are required to work overtime and as such I seek clarification as to whether there is any maximum limit for working of such workers beyond their working hours?

 

Solution:

 

In regard to overtime work, the following maximum limit of work, inclusive of overtime, is to be observed

 

                      i.        the total number of hours of work in any day shall not exceed 10;

                     ii.        the spread over, inclusive of intervals for rest, shall not exceed 12 hours on any day; and

                    iii.        the total number of hours of overtime shall not exceed 50 for any period of 3 consecutive months, beginning on 1st of January, 1st April,1st July and 1st of October.