India:
Karnataka Government’s Notification On Factory Workers
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1. INTRODUCTION
The government of Karnataka through notification No. KAE 33
KABANI 2020, dated May 22, 2020 (the
“Notification“), has exempted all
factories registered under The Factories Act, 1948 (the
“Act“) from complying with the
provisions relating to weekly and daily hours, with effect from May
22, 2020 to August 21, 2020. This exemption from the provisions of
Section 51 (Weekly Hour) and Section 54 (Daily Hour) of the Act
shall be available as long as no adult worker is allowed or
required to work in a factory for more than 10 hours in any day and
60 hours in any week. The provisions regarding overtime wages, as
contained in Section 59 of the Act, shall continue to be applicable
without any change.
We highlight below the implications of this Notification.
2. ANALYSIS
The Notification is applicable to all factories in the state of
Karnataka where a “Factory” means any premises including
its precincts, where ten or more workers are working (or were
working on any day of the preceding twelve months) and in any part
of which a manufacturing process is being carried on or is
ordinarily so carried on, with the aid of power, or where twenty or
more workers are working (or were working on any day of the
preceding twelve months) and a manufacturing process is being
carried on, or is ordinarily so carried on without the aid of
power.
The Notification lays down the following directions with respect
to all Factory workers, with specific reference to their working
hours and overtime payments:
(i) Extension of maximum permissible daily working hours from 9
hours to 10 hours a day;
(ii) Extension of maximum permissible weekly hours from 48 hours
to 60 hours in a week;
(iii) Any overtime wages shall continue to be applicable at
twice the normal wages for hours exceeding 9 hours in a day and 48
hours in a week; and
(iv) Where an employee is working in a Factory, while he is
allowed to work for 10 hours daily and 60 hours in a week, he shall
be entitled to overtime wages at twice the normal wages for every
hour worked more than 9 hours in a day and 48 working hours in a
week.
3. IMPLICATIONS
The Notification by the government of Karnataka relaxes the
previous regulations relating to the daily and weekly working hours
of all Factory workers in the state of Karnataka. This short term
relaxation in working hours will allow the employers and Factory
owners to opt for longer daily and weekly working hours in their
Factories, providing them with an opportunity to attempt to narrow
the gap in their productivity levels created due to the COVID-19
crisis, while ensuring that the Factory workers are appropriately
compensated and they face no negative impact with respect to their
entitlements for overtime wages.
4. INDUSLAW VIEW
While this Notification provides a financial opportunity for
both employers and employees during this unprecedented situation,
it also places a heavier burden of longer working hours on Factory
workers. Given that, safeguarding the payment of overtime wages
becomes crucial so that no employee is in a position where overtime
compensation guaranteed under law is denied.
Originally published 28 May 2020
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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