Casual/ Daily Rated Workers in a Factory Entitled To Overtime

Will a casual/ daily rated worker be entitled to overtime if he works for more than 8 hours a day? – This is a pertinent question which the management of a factory often faces under the labour laws in India.

The definition under Section 2(i) of the Factories Act, 1948 includes within the terms of worker any person employed directly or through agency or contractor, with or without knowledge of employer, whether on remuneration or not in manufacturing process or in any other kind of work incidental to or connected with or the subject of manufacturing process. Hence, in terms of the said definition the casual/ daily rated workers of a factory would come under the meaning of ‘worker’ as contemplated under Section 2(i) of the Act.

Moreover, Section 59 of the Factories Act, 1948 provides provisions for extra wages for overtime. Where a worker works in factory for more than 9 hours in a day or for more than 48 hours in a week, then such worker is entitled to extra wage in terms of overtime.

However, in terms of the decision of Hon’ble Supreme Court in The Clothing Factory, National Workers’ Union, Avadi Madras vs. The Union of India reported in 1990 (1) CLR 785 SC, it has been held that if a worker is required to work for additional hours but his total working hours are less than 48 hours in a week then he would not be entitled to overtime for such additional work.

Hence, it is clear that a worker who works in factory for more than 9 hours in a day and 48 hours in a week is entitled to extra wages for overtime works.

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