Raise permissible overtime hours to 100, says industry
The recent amendment to the Payment of Wage Act for moving to a cashless system has come as a blow to companies, which find it difficult to make overtime payments to daily wagers who put in more than 72 hours of extra work in a quarter. Many workers put in more than the permissible 72 hours of overtime in a quarter and companies pay them in cash ‘adjusting’ it suitably in their books. The companies, were, however, not recording the payment made for overtime in excess of permissible limit. But this practice cannot continue now as wages can be paid only electronically or through cheques.
This has prompted the industry to demand a notification on increasing permissible overtime hours to 100 so that companies can legally pay for increased working hours.
“A rise in overtime limit will help both workers and industry. It will provide an opportunity to lab?ourers to earn some extra money. It will also benefit the industry. When there are huge orders the same set of workers co?uld be engaged for additional hours,” said Ajay Sahai, director general and CEO, Federation of Indian Ex?port Organisations (Fieo).
He said Fieo has taken up the matter with the government to increase overtime hours for factory workers.
Sources said the government has also initiated the process to relax labour laws. After the Union cabinet’s approval, Lok Sabha passed the factories amendment bill to increase the overtime limit of factory workers to 100 hours in a quarter.
The bill also proposes increasing the overtime hours for factories with exceptional workload to 115 hours in a quarter. The government has said the change in rules would give boost to the manufacturing sector and facilitate ease of doing business. “The changes are, however, yet to be notified by the government,” an industry executive said.
The cabinet on December 21, 2016, approved pro?mulgating an ordinance am?e?nding the Payment of Wag?es Act, 1936, empowering certain categories of business and industrial establishments to pay salaries through cheques or by using electronic modes without taking consent of employee.
Wages can only be transferred to the bank account or through a cheque in his fav?our only after taking a written authorisation of a staff.
A bill was introduced by labour minister Bandaru Dattatreya in Lok Sabha on December 15, 2016, seeking to amend the law. But it could not be passed due to the continuous disruption of Parliament on demonetisation issue. Since, it can now only be passed in the budget session, it was decided to promulgate the ordinance, which is valid for six months. The government has to get it passed in Parliament before its validity expires
This has prompted the industry to demand a notification on increasing permissible overtime hours to 100 so that companies can legally pay for increased working hours.
“A rise in overtime limit will help both workers and industry. It will provide an opportunity to lab?ourers to earn some extra money. It will also benefit the industry. When there are huge orders the same set of workers co?uld be engaged for additional hours,” said Ajay Sahai, director general and CEO, Federation of Indian Ex?port Organisations (Fieo).
He said Fieo has taken up the matter with the government to increase overtime hours for factory workers.
Sources said the government has also initiated the process to relax labour laws. After the Union cabinet’s approval, Lok Sabha passed the factories amendment bill to increase the overtime limit of factory workers to 100 hours in a quarter.
The bill also proposes increasing the overtime hours for factories with exceptional workload to 115 hours in a quarter. The government has said the change in rules would give boost to the manufacturing sector and facilitate ease of doing business. “The changes are, however, yet to be notified by the government,” an industry executive said.
The cabinet on December 21, 2016, approved pro?mulgating an ordinance am?e?nding the Payment of Wag?es Act, 1936, empowering certain categories of business and industrial establishments to pay salaries through cheques or by using electronic modes without taking consent of employee.
Wages can only be transferred to the bank account or through a cheque in his fav?our only after taking a written authorisation of a staff.
A bill was introduced by labour minister Bandaru Dattatreya in Lok Sabha on December 15, 2016, seeking to amend the law. But it could not be passed due to the continuous disruption of Parliament on demonetisation issue. Since, it can now only be passed in the budget session, it was decided to promulgate the ordinance, which is valid for six months. The government has to get it passed in Parliament before its validity expires
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