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good_hr
8

It's alway to have your doubts clear from the wise person only and here i am - I am working as a HR Officer in Manufacturing Unit in HP and there are many unfair HR practices carried out in organisation which i would like to discuss with you and have your valuable advices & expertise sharing the right thing we can make the difference in some ones life i believe so please share your opinion ...
I would like to have your opinion First is on "Over time"
1st Point :
Just saying r referring "Overtime" as "Ex gratia " can employer over come for not paying ESI contribution share to ESIC
and on another side in legal register of Overtime under the act they are mentioning "No Overtime is paid in month of ..." & on other hand employee working more than prescribe hours under the act and even paid by company company is booking in account as income of employee.
2nd:
During the peak of Production employee are made to work more that 100 hrs in month and half of this overtime hrs are made leave which is called comp-off and this comp-off has to be consumed by respective employee with the two months & even (CL,SL,PL) will be also effected due to this order, which is passed verbally by Head HR. Please share what is right to do..

From India, Rohtak
nathrao
3124

My views:
Remuneration received during the working hours and overtime constitutes a composite wage and thereby it is a wage within the meaning of Sec.2(22) of the ESI Act. Therefore, the contribution is payable on the overtime allowance. However, overtime allowances will be considered as wage for the purpose of charging the contribution only.
The actions are in violation of laws regulating overtime, leave and can be questionable by Labour officer and other regulatory agencies.
Head HR ought to know the rules and advice management accordingly but he appears to be hand in gloves with management. Head HR is knowingly violating rules and will bear the brunt when regulatory authorities check.
Has any worker objected?
Are there any trade unions in the factory?
Take the risk of advising your higher ups the rule position and try to convince them to follow rules.
Saving in ESIC contribution will not be all that high by showing it as Ex gratia.
Some day it will be questioned and then people will face trouble.
Strike a careful path and avoid getting into a situation where the blame for following unfair HR practises does not fall on you.

From India, Pune
Anonymous
8

First of all i would like to appreciate your opinion & "Thank you" for such a prompt reply.
Has any worker objected? : Yes, most of them always share their problem they face, at the same moment they are afraid to come in open.
Are there any trade unions in the factory? No their is not union here.
I will take your advice & as a professional i take the risk of advising our higher ups the rule position and try to convince them to follow rules.
And what's your view on second point. pls, share...

From India, Rohtak
nathrao
3124

Head HR is passing illegal orders about OT being made leave or offs etc.
OT hours are guided by this amendment
Pl refer
http://www.prsindia.org/uploads/medi...ll,%202016.pdf
Max OT in a quarter is 125 hours .
So first read up all relevant rules, make notes, references to original act and then boldly inform management and your Head HR also about these violations.
Be aware your management will react adversely.

From India, Pune
umakanthan53
5967

I prefer leaving out the first point as it was already rightly answered by my learned friends in an elaborate manner.
Regarding the second point relating to the treatment of half of the over time work hours as compensatory off within a period of two months I am very skeptical about this procedure because of the following reasons:
1) The language of S.59 of the Factories Act,1948 clearly indicates that it is the statutory right of the worker to claim extra wages at the enhanced rate of ordinary wages when required to work beyond the normal working hours.
2) Dividing the entire over time hours worked in to two halves and paying extra wages ( the rate is not mentioned but it must be single wages ) for half of such hours in the name of " ex-gratia " to evade ESI contributions and asking the workers to avail of compensatory off is certainly illegal.

From India, Salem
Anonymous
8

Respected Senior, I really appreciate your knowledge sharing. Thank you & regards,
From India, Rohtak
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