India’s new labour codes lay down provisions governing working hours, overtime, and related compensation for employees. The rules define standard working hours and specify conditions under which employees may be required to work beyond them, given that they are compensated for extra hours.
The government released new codes, merging 29 laws into four labour codes on Friday, November 21, with the aim of promoting ease of business while protecting workers’ rights. These include the Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety Code.
The codes also outline limits on total working hours and mandate overtime pay at prescribed rates. As per the rules, employers must pay their staff twice the standard rate for any overtime work. Such provisions aim to standardise practices around extended work hours under the new regulatory framework.
Under Indian labour law, the normal working hours for employees in most factories and similar establishments are 8 hours per day and 48 hours per week. These limits are designed to ensure basic protections around rest, health, and work-life balance. Any work beyond these mentioned hours will be treated as overtime and requires worker’s consent, on top of the double pay.
Who are exempted from the overtime pay?
Managerial or administrative employees are often excluded from the definition of “worker” in policy provisions and, as a result, the right to statutory overtime, according to Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.
Meanwhile for supervisory employees, considerations include wage caps and the nature of employment. “If a supervisory employee’s work is regarded mostly as managerial or if the supervisory employee’s pay is above the limits set by the government, then the supervisory employee may not be entitled to statutory overtime,” he said.
In the field of financial planning, this categorization is considered significant. Managerial employees should not regard overtime as a fixed income and should reorganize their total CTC, Maurya said, adding that, non-managerial employees are entitled to statutory overtime.
What can workers do if the employer refuses overtime pay, other rights
According to Maurya, the first line of grievance redressal is internal, in which the employee should address the issue to the employer or line manager directly. If the issue is not resolved, or the employer cannot be contacted, the worker is permitted to bring the issue to the notice of the concerned authority. The concerned authority could be the Labour Commissioner or a government functionary who is an Inspector-cum-Facilitator.
“It passes the employer’s boundary if the violation is of the Code on Wages. The employee can go a step further and submit a complaint to the concerned authority, such as a wage tribunal or a judicial magistrate appointed for the same, purpose” he said.
The complaint should have details of employment, nature of violation, and supporting evidence like wage papers, attendance sheets, or employment agreements. “Generally, there are limitations of time and place within which a complaint has to be submitted, usually within 2, 3, or sometimes 5 years from the date of violation,” he said.
Besides the above, employees can seek the support of legal representatives or trade unions or both to strengthen their case. If necessary, disputes can be submitted to labour courts or industrial tribunals for resolution as a last resort.
Other provisions for workers
Apart from the prescribed working hours and overtime pay, the new codes also mandate that employers must not discriminate between workers based on gender, including transgender identity, in recruitment, wages, or employment conditions for similar work.
The principle of universal coverage under the reforms aims to extend key wage protections to all employees, irrespective of wage limits or designation. This means that basic entitlements such as timely salary payment, wage security, and protection against arbitrary or unauthorised deductions shall apply across the workforce, including both low-wage and higher-wage employees.
