LABOUR RIGHTS
Those employed in the industrial and commercial organisations are quite familiar with the term overtime work but not everyone has a fair knowledge as to what it entails. The first ever legislation governing the rules of working in manufacturing enterprises was enacted and introduced by the British in the subcontinent: Factories Act, 1934.
The act formalised the working hours as laid down in the International Labour Organisation (ILO)’s Convention No 1, formally known as Hours of Work (Industry) Convention, 1919. It established a standard eight-hour working day and 48-hour week for industrial workers. Despite the passage of 91 years, there has not been any amendment in this law.
Organisations may fix less standard or agreed-upon regular working hours, but they cannot exceed the limit of working hours as prescribed by the ILO convention.
Irrespective of the above, there is no bar upon organisations making their employees work beyond the standard working hours. Any work performed by an employee that goes beyond their standard working hours is called overtime work.
These assignments come with additional compensation, often at a premium rate such as double the normal hourly wage. The specific definition of standard hours and the rules for overtime pay vary significantly depending on the country, region and local labour laws.
In Pakistan, the regulations related to the standard working hours are governed by three different enactments. These are the Factories Act, 1934; Shops and Establishments Ordinance, 1969 and rules framed by the respective provinces allowing exemptions from the limits on overtime work as stipulated in the Factories Act. In Punjab, it is the Punjab Factories Rules, 1978, and in Sindh is governed by the Sindh Factories (Adult Exemption) Rules, 1989.
The Factories Act applies to the workers employed in any manufacturing process or in cleaning any part of the machinery or premises used for a manufacturing process. Where a worker works for more than nine hours in any day or for more than 48 hours in any week, he/she shall be entitled to compensation at twice the rate of his/her ordinary pay for any overtime worked.
The term “at the rate of his ordinary rate of pay” has also been defined in this section and means the worker’s gross monthly salary. As payment against overtime work by workers involves additional cost, most companies in Pakistan flout this provision by fixing the hourly rate for overtime payment at a much lower rate than the one prescribed under the law.
Employers must balance business needs with worker well-being by setting clear boundaries, fostering good communication, avoiding excessive overtime and managing workload effectively to prevent burnout
They usually make payment against overtime work at basic salary plus the cost-of-living allowance and do not include the other fixed allowances such as rent, conveyance and medical allowance etc.
The hourly rate for overtime payment should be calculated according to this formula, which is based on the requirements for such payments under the law: ‘monthly rate of salary times 12’ divided by ‘52 times number of normal scheduled hours per work week’.
The overtime limits prescribed under the Factories Act are relaxed in case there are urgent repairs required in the factories or they must be shut down for periodical maintenance and overhauling. Such shutdowns may last up to 15 days at a stretch, depending on the size of the plant. In such situations, the workers are put on two 12-hour shifts instead of the usual 8-hour shifts, with meals break in-between.
The daily and weekly work hours during the shutdowns are governed by exemption rules framed by the provinces under the Factories Act. For instance, the Sindh Factories (Adult Exemption) Rules, 1989 grant exemption from the overtime regulations for the period occupied in the completion of such repairs subject to the following conditions.
That (a) the period of exemption for any one worker shall not exceed 14 days in any calendar month; (b) no worker shall be employed for more than 14 consecutive days without one full day’s holiday; (c) no worker shall be employed continuously for more than 8 hours without rest/interval of at least one hour. (d) a notice to this effect shall be sent to the government inspector within 24 hours of the commencement of such work along with the names of workers engaged. A copy of this notice shall be displayed near the main entrance of the factory.
The third category is that of persons employed in shops and commercial, industrial and other establishments, mostly comprising the office staff. Section 8 of the Shops & Establishments Ordinance, 1969 provides as follows: In any day or in any week, in which there occurs stock-taking, making up of accounts, settlement or such other business operation etc, an adult employee of an establishment may be required to work over-time but such that the total number of hours so worked do not exceed 150 hours in any one year.
Employers must balance business needs with worker well-being by setting clear boundaries, fostering good communication, avoiding excessive overtime and managing workload effectively to prevent burnout. Employees should also avoid time-wasting or unnecessary activities during normal working hours with the purpose of working overtime to complete their work.
The writer is a consultant in human resources at the Aga Khan University Hospital. He can be reached at: parvez.rahim1947gmail.com