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Section 14: Wages for overtime work

The Code on Wages, 2019 (Act No. 29 of 2019) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter II: Minimum Wages
Competent Labour Forum
Act No. 29 of 2019
Section 13 All 67 Sections of Code on Wages, 2019 Section 15

Legal Commentary & Landmark Judgments: Section 14

Section 14 of the Code on Wages mandates statutory overtime compensation, providing that where an employee works in excess of the number of hours constituting a normal working day or works on a rest day, the employer shall pay overtime wages at not less than double the ordinary rate of wages (2x multiplier).

  • Statutory Double Rate Multiplier (2x): Mandates payment at not less than twice the ordinary rate of wages for every hour or fraction of an hour worked in excess of the standard working day or on a designated rest day.
  • Definition of 'Ordinary Rate of Wages': Calculated based on the comprehensive definition of 'wages' under Section 2(y), encompassing basic pay and dearness allowance, rather than basic pay alone.
  • Mandatory Overtime Register and Slips: Requires the employer to maintain statutory overtime registers recording start and finish times, actual hours worked, and corresponding overtime payments disbursed.
Key Landmark Precedents:
  • Philips India Ltd. v. Labour Court (1985) 3 SCC 103: The Supreme Court held that statutory overtime rates serve a dual purpose: fairly compensating the workman for physical strain and serving as a financial deterrent against employers overworking staff beyond statutory limits.
  • Indian Oxygen Ltd. v. Their Workmen (1969) 2 SCR 550: The Supreme Court held that overtime payments cannot be treated as ordinary wages for retirement benefits, but must be paid at strict statutory double rates for every minute of work executed beyond normal hours.
Courtroom Practice & Strategic Litigation Guidance:

Payroll engines must be calibrated to compute overtime at 200% (2x) of the Section 2(y) wage base (Basic + DA + qualified allowances). Employers cannot contract out of Section 14 by offering compensatory leave in lieu of overtime or capping overtime via internal company policies. In tribunal litigation, punch records, turnstile logs, and CCTV attendance records will be requisitioned to establish overtime liability.

Section 13 All 67 Sections of Code on Wages, 2019 Section 15