Overtime work

Overtime work

In what circumstances can an employee be required to work overtime and what

must you pay him or her?
Overtime work
In what circumstances can an employee be required to work overtime and what must you pay
him or her?
Overtime and work on public holidays
In terms of The Basic Conditions of Employment Act 75 of 1997 (the Act) an employer may not oblige an
employee to work overtime (the time that an employee works during a day or a week in excess of
ordinary hours of work) on weekends or public holiday except in accordance with a signed agreement.
Accordingly, if overtime work is required by business or operational requirements of the Company
employees will be only be obliged to work on weekends or public holidays if they agree in writing to do so.
Calculation of overtime rates
These are the basic principals concerning overtime as contemplated by the Act:
The Act does not apply to certain categories of employees such as members of the National Defence
Force and will not apply to workers in senior management, sales staff who travel and regulate their
own working hours and workers who work less than 24 hours in a month or who earn more than an
amount gazetted from time to time;
No employee will be remunerated for overtime work unless such overtime has been authorised by his or
her manager or is required in terms of a work roster;
Workers must receive 1.5 times their normal hourly pay or paid time off in exchange for overtime (or a
combination of pay and time off);
Workers may not work:
o overtime, unless by agreement
o more than 10 hours overtime a week (collective agreement may increase this to 15 hours per
week for up to 2 months a year)
o more than 12 hours on any day
Remuneration for Overtime Work
Calculation of overtime pay based on a 5 day work week:
Employees who work a five day work week are deemed to work 21.67 days per month;
The working week consists of 45 ordinary hours per week;
The working day is deemed to consist of 9 working hours for which the employee is paid, and a 1 hour
meal break which is not paid time.

The formula for calculating the hourly rate of pay is:

Salary 21.67 (days per month) 9 (working hours) and 21.67 x 9 = Total working hours per month
(195.03 hours)

Calculation of overtime pay based on a 6 day work week:

 Employees who work a six day work week are deemed to work 26 days per month;
The working week consists of 45 ordinary hours per week;
The working day is deemed to consist of 7 working hours for which the employee is paid, and a 1 hour
meal break which is notpaid time.
The formula for calculating the hourly rate of pay is:
Salary 26 (days per month) 7 (working hours) and 26 x 7 = Total working hours per month (195
hours)

Posted by Satyam mishra at Tuesday, July 21, 2009

Labels: Calculation of overtime rates, Overtime and work on public holidays,
Remuneration for Overtime Work

Relieving Letter formate

Mr. XYZ
Address of Employee
Date Dear XYZ
This is to acknowledge the receipt of your resignation letter dated 4th
August 2007 .
While accepting the same, we thank you very much for the close
association you had with us during the tenure from 27th March 2007 to
4th August 2007as a Project Lead.
You have been relieved from your service with effect from the closing
working hours of
We wish you all the best in your future career.
Best Wishes
(Admin & HR)

Women and Industrial Law : Maternity Benefit Act 1961

Women and Industrial Law : Maternity Benefit Act 1961

Economic dependence of women is what gives rise to their subordination in society
today. Hence to remove such subordination and to lay the foundation of equality
women too must be made economically independent and must take an active role in all
sectors of business today. To support such initiative the Government must provide
some conditions which are suitable for the needs of women.
Problems faced by women in the economic sphere of life are mostly relating to unequal
wages and discrimination resulting from their biological role in nature of childbearing.
To curb such problems and protect the economic rights of women the legislature
introduced the Equal Remuneration Act 1976 and the Maternity Benefit Act of 1961.
Maternity benefits were first recognized when the Maternity Protection Conference
was held by the International Labour Organization in 1919. In a case in 1977, B. Shah
v. P.O. It was held that women need to be withdrawn from the workforce during
pregnancy and after the birth also they need the steady income for medical expenses
etc. and therefore to preserve her health law should make provisions for maternity
benefit so women can ensure their productivity as well as reproductivity.
A maternity benefit is one that every woman shall be entitled to, and her employer shall
be liable for, the payment of maternity benefit, which is the amount payable to her at
the rate of the average daily wage for the period of her actual absence. The Maternity
Benefit Act aims to regulate of employment of women employees in certain
establishments for certain periods before and after childbirth and provides for maternity
and certain other benefits.
The Maternity Benefit Act is applicable all across the whole Union of India and is
pertinent to every factory, mine or plantation including those belonging to Government,
irrespective of the number of employees, and to every shop or establishment wherein
10 or more persons are employed or were employed on any day of the preceding 12
months. Women can claim benefits under the act everywhere except in factories and
other establishments where the Employees State Insurance Act is applicable. Sec.2 of
this Act lays down its applicability where it states that this act must be followed in all
Governmental establishments such as factories, mines, and other plantations where
people are employed for the exhibition of equestrian and acrobatic skills. Also it
applies to shops or any state owned stores or markets where at least ten people are
employed and the person must have been working for at least 12 months to avail of the
maternity benefits.
Women are eligible to gain benefits under the act if the woman employee, whether

employed directly or through a contractor, has actually worked in the establishment for
a period of at least 80 days during the 12 months immediately preceding the date of her
expected delivery. The qualifying period of 80 days does not apply to a woman who
may have immigrated into the State of Assam and was pregnant at the time of
immigration. There is no wage ceiling for coverage under the Act nor there is any
restriction as regards the type of work a woman is engaged in. The maximum period
for which any woman shall be entitled to maternity benefit shall be twelve weeks of
which not more than six weeks shall precede the date of her expected delivery.
Section 4 of this act states when women are prohibited to work under certain
circumstances- firstly, within six weeks that immediately follow the day of delivery,
miscarriage or termination of pregnancy, secondly, no employer should knowingly
employ them within the six weeks of above circumstances, thirdly, pregnant women on
request by employer are not allowed to do any work which involves standing for long
hours or any activity which may be harmful to the fetus. The time period for this will
be one month preceding the expected delivery date or any period during the six weeks
when she is not to be working but does not avail of this leave. In the B.Shah v. P.O.
case it was held that 100% wages were to be provided for all days of leave as well as
benefits such a Sundays and rest days as wages were being given for actual number of
working days missed.
Section 5-A guarantees women the security of tenure during such period of leave. Their
employer will continue to pay her wages even though she is unable to attend work.
In case a woman dies during this period, the maternity benefit shall be payable only for
the days up to and including the day of her death. In case the woman dies during the
delivery or within a short period after it then the employer is liable for the entire period
but if the child dies then for the days up to and including the date of death of the child.
The loss of both wife and child can be very emotionally scarring and the husband will
be paid the compensation of maternity benefit.
Women who work strenuous hours during the course of their employment can develop
stressful tendencies. When they reach a certain age they are expected to start a family
and due to their hectic schedules they develop complications while conceiving. Hence
for a certain period of time women should be allowed their personal rights to give birth
to healthy children and take care of the infants till a certain period of time while getting
support from their employing establishment as medical expenses as well as costs of
taking care of newborn children are expensive.
Maternity benefit is paid in certain cases:
a) to women who are employed in factories or other institutions where the
provisions of the Employees State Insurance Act apply
b) whose wages for a month exceed the amount specified in sub clause (9) of sec.2
of the Act
c) who fulfills the conditions specified in sub section (2) of sec.5

shall be entitled to the payment of maternity benefit under this Act.

Under sec.6 a Notice of claim for maternity benefit must be provided. A woman
employee entitled to maternity benefit may give a notice in writing (in the prescribed
form) to her employer, stating as follows:
i. that her maternity benefit may be paid to her or to her nominee (to be specified in the
notice);
ii. that she will not work in any establishment during the period for which she receives
maternity benefit; and
iii. that she will be absent from work from such date (to be specified by her), which
shall not be earlier than 6 weeks before the date of her expected delivery.
The notice may be given during the pregnancy or as soon as possible, after the delivery. On
receipt of the notice, the employer shall permit such woman to absent herself from work after the
day of her delivery. The failure to give notice, however, does not disentitle the woman to the
benefit of the Act.

Discharge or dismissal during maternity leave is considered to be void. When a

pregnant woman absents herself from work in accordance with the provisions of this
Act, it shall be unlawful for her employer to discharge or dismiss her during, or on
account of, such absence, or give notice of discharge or dismissal in such a day that the
notice will expire during such absence or to vary to her disadvantage any of the
conditions of her services. Dismissal or discharge of a pregnant woman shall not
disentitle her to the maternity benefit or medical bonus allowable under the Act except
if it was on some other ground.
Women are entitled to these benefits as the child bearing process is intensely painful
and can cause bodily damage. This may severely affect the future work of the woman
as an employee and decrease her productivity. Hence a certain amount of time, usually
six weeks is given for recovery and nursing of the newborn child. Such leave may also
be extended in special cases related to pregnancy such as miscarriage or termination of
pregnancy. Special provisions are made for miscarriage In case of miscarriage or
medical termination of pregnancy, a woman shall, on production of the prescribed
proof, be entitled to leave with wages at the rate of maternity benefit, for a period of 6
weeks immediately following the day of her miscarriage or medical termination of
pregnancy as per sec.9 of the Maternity Benefits Act. For a Tubectomy operation as
well prescribed proof must be provided and two weeks leave will be provided by the
employer. Leave for a maximum period of one month with wages at the rate of
maternity benefit are allowable in case of illness arising out of pregnancy, delivery,
premature birth of child, miscarriage or medical termination of pregnancy or tubectomy
operation. Every woman entitled to maternity benefit shall also be allowed a medical
bonus of Rs. 250, if no pre-natal confinement and post-natal care is provided for by the
employer free of charge.
For women who return to their services with the employing agency after the leave
provided a special provision for two breaks in the working day for a prescribed period

of time for nursing the child till the age of fifteen months. This gives women a feeling
of convenience as they do not have extra hassles of running home from time to time or
the inconvenience of losing their status of employment.
The main authority on this Act is the Central Government which determines the extent
of Act and makes rules to enforce it. Its main aims are to give directions to the State
Government regarding execution of the act, and where the appropriate Government is
the Central Government, to make rules for carrying out the provisions of this act, to
exempt establishments from any or all provisions of the act. Where the appropriate
government is the State Government, to make rules for the purpose of carrying out the
provisions of this act, to exempt establishments from any or all provisions of the act.
The duty of the Inspector appointed is to implement and enforce the provisions of the
act and to hear complaints regarding payment of maternity benefit. He or she can enter
at reasonable times with assistants, any premises where women are employed, examine
any person, require the employer to give information regarding women employees,
take copies of registers or records, order payments to be made.
Failure to pay maternity benefits or discharge or unemployment of woman due to
maternity will result in imprisonment of the employer for not less than three months
which may extend to one year and a fine of rupees two thousand which may extend to
five thousand. For contravening the provisions of this Act and obstructing the Inspector
from viewing registers and documents can also result in imprisonment of one year and
fine of rupees five thousand.
It is seen that there are provisions for women who do undergo inconvenience at a stage
when they are starting families and are given many benefits such as paid leave etc. This
is however not enough as many employers do not hire married women or dismiss them
before pregnancy. The Act provides some protection to women economically especially
today in an age where single mothers are becoming more prevalent it gives them
stability in their lives to have their wages and the security of returning to a steady job.
My personal views are that this Act is not enough to guarantee women equality and
economic security but it is definitely a starting step and though there are several
bridges to cross, the first step has been initiated and in todays progressing world the
future for womens equality shines brightly.

Provident Fund Full Details

1. The Employees Provident Fund Scheme, 1952
2. The Employees Family Pension Scheme, 1971
3. The Employees Deposit-Linked Insurance Scheme, 1976
Calculations: P.F from Basic Employee: 12% (P.F) Employer: 3.67% Provident Fund (A/c 1) +
8.33% Pension (A/c 10) + 1.10% Admin Charges on PF (A/c 2) + 0.50% EDLI (A/c 21) +
0.01% Admin Charges on EDLI (A/c 22) =>13.61% on basic * Pension (8.33% or 541/- which
ever less)
Regular activities:
1. Time of joining: Form 2: Employee should fill, at the time of joining, nomination &
Declaration form. Form 2, includes the following Name of the employee Parent/spouse
name Date of Birth Sex Marital Status AC No Address Names, address, relation, Share
for each etc Also for changing nominee names Form 2 is used. His eligibility begins on the date
of joining the firm. Submitted along with form-5.
2. Withdrawers/Dead : Form 10c (pension) & 19 PF Form 19 is used for withdrawing PF
amount. Employee and parent/spouse name, name of the establishment, Ac no, Reasons for
leaving service, Contribution for current financial year etc. Form 10 is used for pension
withdrawal. Form 19: Employee should fill, all information like Bank a/c, name, DOJwith
signature and then Employer like present year contributions, DORfor PF Fund Due date:
After 60 Days of Resignation) Form 10C: Employee should fill, all information like Bank a/c,
name, DOJwith signature and then employer like present year contributions, DORfor
Pension Due date: After 60 Days of Resignation
3. Transfer : Form 13 Form 13 is used for transferring an employee AC from one company to
another. Both employer and employee have to specify his name, PF AC no, Position etc and
submitted with a covering letter (consolidated list of employees). Photocopy of the above is
kept in PF file for transfer.
4. Employee register 3A, 6
5. For advance : Form 31
6. In case of employee expired / dead : Process details Form 10 D (For claiming benefits
under Pension) Employee should fill like Expired/late employee name, nomination name,
details, Nomination Bank a/cfor monthly Pension Form 20 (For Claiming EPF Contributions)
Employee should fill like Expired/late employee name, nomination name, details, Nomination
Bank a/cfor withdrawal of PF Fund (Incase of Death of a member Form 5 IF (For Claiming
EDLI benefits, nominee will get benefit) EDLI for death case, nominee will get benefit.
7. Form 9 (Register of employers - Application for review filed under) Monthly Remittance /
Challans:
1. Challans every month before 15th (4 copies/ quadruplicate)
2. All A/c (A/c Nos-1,2,10,21&22)
3. To Bank
4. both employer & employee contribution Account group no eg Ma mu 1246 (state-first two
alphabets /city/acc no: of the company) Month Total number of subscribers Total wages
due for each account (wages on which calculations are done) Each accounts totals
(consolidated amount with employer and employee share) Name of the establishment and
address Name and signature of the depositor Name of the bank, mode and date of
remittance etc Challan is submitted tp PF office along with form-12A every month.
Monthly returns:
1. Form 12 A, with all information and employees list of contribution before 25th
2. With Form 5 (new joiners list) , form 10 (resigned employees list), challans copy

3. Information about last month employees, new & resigned employees & this month staff.
Form 5 Name of the establishment and address Month Code no: of the factory A c no:
Name of new employees Fathers or Husband name in case of married women Date of birth
Sex Date of joining the fund Total period of pervious services as on the date of joining the
fund
Form 10 Name of the establishment and address Month Code no: of the establishment
A c no: Name of member who is leaving Fathers or Husband name in case of married
women Date of leaving service Reasons for leaving service Signature of authorized officer
and stamp of the establishment Cross checking the above is done with the salary statement
which includes the number and name all current employees.
Form 12 A: Name of the establishment and address Currency period and month (April yr
to march yr) Statutory rate of contribution (12%) Group code (NA for unexampled
establishment. Establishment having more than 1000 have to keep a PF trust and have to
specify the group code) Total wages due for each account (wages on which calculations are
done) Amount of contribution and amount remitted (consolidated amount with employer and
employee share) Date of remittance Total number of subscribers for the current month.
Name and address of the bank in which the amount is remitted. Details of subscribers for
E.P.F, PF, EDLI --No of subscribers as per last month --No of new subscribers (vide Form 5)
--No of subscribers left service (vide Form 10) --Total no of subscribers (After adding and
subtracting the new and retired employees with, the number should tally with monthly list of
employees) Cross checking the above is done with the salary statement.
Annul returns:
1. Form 3 A (Individual Computation sheet)
2. Form 6 A (Consolidated Annual Contribution Statement)
3. before 30th April every year Form 6A: Currency period and month (April yr to march
yr) Name of the establishment and address Code no: of the establishment No: of member
voluntary contributing at a higher rate AC No of each employee followed by their name,
annual salary, annual contribution, employer contribution, refund of advance, rate of voluntary
contribution. This grand total should tally with all form 12 A and challans totals.
Form 3A: Register This form is filled up for each employee stating his each monthly salary,
contribution, Employer share, Refund of advance, No of days/period of non contributing
service, if any (eg. unauthorised leave). If the employee is resigned during that financial year
then the date of leaving service and reasons for leaving service should be specified in this
form. Using Form 3A, form 6 A is filled up and crosschecking is done with all challans and 12 A
forms. * Muster Roll * Wage Register * Inspection Book * Cash Book, Voucher & Ledger * PF
work sheet Forms: Form 3: Contribution Cards - Individual Computation sheet contains all PF
amts month-wise. Form 3 A: Contribution Cards Form Form 4: Contribution card for
employees other than monthly paid employees - Form Form 5 A: Return of Ownership to be
sent to the Regional Commissioner - Form Form 6: Return of the Contribution Cards sent to
the Commissioner on the expiry of the period of currency Form Form 6 A: Consolidated
Annual Contribution Statement - Consolidated Computation Sheet, contains total employees
list, there total half yearly information. Form 6 is top sheet and 6A is attachments. Form 9:
Register of employees - Application for review filed under. Register 3: Individual Computation,
there Gross salary, Basic, DA, attendance, PF, Pension Information maintains month-wise.
Form 3 is top sheet and 3A is attachments.

What is Sex Discrimination at Work?

This kind of discrimination occurs when a particular group of individuals receive
treatment that have a negative bias and can be either direct or indirect. Direct
discrimination is when a particular individual treats another disrespectfully purely
from the gender perspective and indirect is when at the work place, a particular
employer shows negative bias towards people of a specific gender and does not
apply the same rules or accord facilities offered to others of a different gender.
Exception
While it is illegal to have any discrimination from the gender perspective, some
exceptions are allowed which permits the employment of people of the same sex, as
in the case of a nursing home managed by only men or women. Discrimination
against a woman due to pregnancy or the fact that she has had to avail of maternity
holidays is definitely against law and can be reported.
What is harassment and what is victimization?
One other form of gender harassment is the creation of a working atmosphere that
affects the dignity and impinges on the pride of the individual based on gender.
Similarly, when an employer accords harsh treatment to somebody who has already
complained of such behavior in the past, it can be construed as victimization and can
be reported by fellow employees with corroborative evidence.
What is the liability of the employer?
In an organization, if the employer is found to be ineffective in controlling situations
of gender bias and unfavorable treatment to specific people, they become liable to
provide justifications as to why they allowed it to happen and what action they
propose to take to prevent recurrences. The affected individual can approach his
immediate line manager and also the Tribunal for justice. Further steps to proceed
legally can also be taken depending on the merits of the case. However, it is
recommended to settle any issues within the company and take the legal route only
if all options fail.
What about sexual harassment?
Though sexual harassment has been prevalent, it was not until the year 2005 that a
specific section was incorporated into the Sexual Discrimination Act and under this,
any action that violates a person's dignity through unsolicited sexual propositions,
vulgar comments, getting subjected to display of pornography and lewd jokes as well
as unsolicited comments on the outfit worn all constitute sexual harassment and it is
the responsibility of the employer to prevent such instances from occurring at the
work place through adequate safeguards and rules. You can also take direct action
against such offenders by building up opinion against the offender by confiding in
your close friends and your union. Telling the offender to quit such action is also well
within your right and you can even give this to him in writing to put it on record.