Question

Under the Factories Act, 1948 which of the following statements is correct about overtime and its calculation?

• A. Piece-rated workers are excluded from overtime calculations under all circumstances
• B. Overtime is payable only if a worker works more than ten hours a day
• C. Overtime for work beyond nine hours a day or forty-eight hours a week is payable at twice the ordinary rate; the definition of “ordinary rate” includes basic wages and certain allowances but excludes bonuses and overtime itself
• D. State Governments have no power to prescribe registers or compute cash equivalents of concessional supplies when calculating ordinary rate

Hint:

Always remember: overtime under the Factories Act starts beyond 9 hours a day or 48 hours a week and is paid at double the ordinary rate.

Answer 1

The Correct Option is C

Step 1: Understanding overtime under the Factories Act.
Section 59 of the Factories Act, 1948 provides that when a worker works for more than nine hours in a day or more than forty-eight hours in a week, he is entitled to overtime wages.
Step 2: Rate of overtime wages.
The Act clearly states that overtime wages shall be paid at twice the ordinary rate of wages. The “ordinary rate” includes basic wages and certain allowances but specifically excludes bonuses and overtime wages.
Step 3: Examination of incorrect options.
Option (A) is incorrect because piece-rated workers are also entitled to overtime. Option (B) is incorrect as the threshold is nine hours, not ten hours. Option (D) is incorrect because State Governments do have the power to prescribe registers and determine cash equivalents of concessional supplies.
Step 4: Conclusion.
Therefore, option (C) correctly states the law relating to overtime and its calculation under the Factories Act, 1948.