Compensation

Overtime Compensation

The normal working hours are 08 hours a day and 40 hours a week. Worker may work for longer hours, provided that the average working hours do not exceed the normal working hours, i.e., eight hours per day and forty hours per week. Where shorter hours of work are fixed on some days of the week, the hours of work on other days of the week may be proportionately longer than eight hours but shall not exceed nine hours per day and forty hours per week. Even when workers are working longer hours, these should not exceed on average eight hours per day and forty hours per week over a reference period of four weeks. For seasonal work, worker may work for 10 hours per day, provided that average working hours during the year must not exceed 8 hours a day. Working hours for shift workers also must not exceed normal working hours. Shorter working hours are prescribed for the manual labour and the job that are injurious to health (hazardous work), provided that the working hours should be deemed to be equivalent to work done on the basis of eight hours a day for the purpose of all rights which may flow from the employment.

A worker may not be required to perform overtime work, exceeding normal working hours, unless that undertaking has fixed rates of pay for overtime work. However, the law does not fix the rate of overtime remuneration. Overtime hours are usually paid at 150% of the normal hourly wage rate.

A worker may not be compelled to do overtime work except for those undertakings or enterprises the very nature of which requires overtime in order to be viable (economic reason), or which are subject to emergencies that require that workers engage in overtime work in order to prevent or avoid threat to life and property (emergency reason).

A worker may be required to work beyond the fixed hours of work without additional pay in certain exceptional circumstances including an accident threatening human lives or the very existence of the undertaking.

Source: §33-38 of the Labour Act 2003 (Act 651)

Night Work Compensation

Labour Act defines "night work" in relation to women only and means work at any time within a period of eleven consecutive hours that includes the seven consecutive hours occurring between 22:00 and 07:00 of the following day. In the industrial undertakings influenced by the seasons, instead of 11 hours, 10 hours limit may be used in sixty days of the year. There is no provision in the law on premium pay for night work.

Compensatory Holidays / Rest Days

No provision could be identified in laws to require an employer to provide compensatory rest day for working on weekly rest day or public holiday.

No provision could be identified in laws to require an employer to provide compensatory rest day for working on weekly rest day or public holiday.

Weekend / Public Holiday Work Compensation

There is no provision in the law regarding weekend/public holiday compensation for permanent workers. However, the temporary and casual workers, if they have to work on a public holiday, are entitled to 200% of the normal rate of wages. If a worker has worked only fraction of the whole day (for some hours), he is entitled to 200% of the normal wage rate for those hours.

Sources: § 77 of the Labour Act 2003 (Act 651)

Regulations on Compensation

  • Labour Act, 2003
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