Overtime Pay in 7th CPC for Defence Industrial Establishments governed by the Factories Act, 1948 – MoD Order

Government of India
Ministry of defence
(Department of Defence)
D(Civ-II)

B-Wing, Sena Bhavan,
New Delhi, the 26 February, 2018

OFFICE MEMORANDUM

Subject: Payment of overtime Allowance (OTA) in the revised pay to the employees of Defence Industrial Establishments governed by the Factories Act, 1948.

Consequent upon revision of pay structure as per VII CPC recommendations, the matter regarding payment of OTA, as per revised pay, to the employees of the Defence Industrial Establishments under the Factories Act, 1948 has been considered in consultation with the Ministry of Labour & Employment, Ministry of Finance and Ministry of Law & Justice.

2. It has been decided that the Overtime Allowance shall be paid to the employees of the Defence Industrial Establishment governed by the Factories Act, 1948 on the basis of revised wages with effect from the date the wages have been revised i.e. 1.1.2016. The OTA on the basis of revised wages is subject to the conditions stipulated in this Ministry’s OM No. 14(1)/97/D(Civ-11) dated 1st July 1998.

3. It is further added/clarified that those categories of “workers” who come within the scope of Section 64 of the Factories Act and whose basic pay exceed the wage limit, as specified in sub-section (6) of Section (1) of the Payment of Wages Act, 1936, are entitled for payment of OTA in terms of MoD OM No. 14(2)/76/D(Civ-II) dated 25.06.1983 on the basis of wage limit notionally determined. Accordingly, OTA will be paid to them on the basis of wage limit notionally determined on the basis of old pay scales until the new wage limit is defined by the Ministry of Labour & Employment based on the consumer expenditure survey published by NSSO. Thereafter, the OTA will be paid to them on the basis of new wage limit notionally determined, if the basic pay exceeds the new wage limit.

The other conditions as laid down in this Ministry’s letter No. 14(1)/97/D(Civ-II) dated 1st July. 1998 shall remain unchanged

4. This issues with the concurrence of MoD(Finance/AG/PB) vide their Dy No. 1 04/AG/PB dated 15.02.2018 and after consultation with Ministry of Labour & Employment vide their ID No. Z-16025/09/2017-ISH-II dated 13.11.2017

(Dalpat Singh)
Under Secretary to the Govt. of India
Tel. 23014675

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REMINDER

Ref: BPMS / MOD / OTA / 43 A (7/2/R)            

Dated: 29.06.2017

To
The Deputy Secretary (CP),
Govt of India, Min of Defence,
`B’ Wing, Sena Bhawan,To,
New Delhi – 110011

Subject:  Payment of Overtime Allowance (OTA) as per revised pay to the  employees of Defence Industrial Establishments under Factories Act, 1948 consequent to implementation of the 7^th CPC recommendations.

Reference: This federation’s letter of even No. Dated 03.01.2017

Respected Sir,

With due regards, your attention is invited to the Anomalies Committee meeting held on 26.12.2016 under the Chairmanship of AS(J) Shri J Rama Krishna Rao wherein we have reflected our concern over the delay in the revision of statutory nature allowance (Over Time Allowance under the Factories Act, 1948) in defence establishments.

In turn, the AS(J) pleased and instructed to resolve the matter of the payment of Over Time Allowance as per revised pay consequent to implementation of 7^th CPC recommendations.

Therefore, you are requested to take necessary action so that the issue of the payment of overtime allowance in defence establishments on the revised pay of 07^th CPC may be resolved without further delay.

Thanking you.

Sincerely yours

(MUKESH SINGH)
Secretary/BPMS &
Member, JCM-II Level Council (MOD)

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While answering to a question in Parliament yesterday, Minister Vishnu Deo said that a proposal for amendment in the Factories Act, 1948 is under active consideration of the government.

In a written reply he said, amendment of Section 66 of the Act relating to permission for employment of women for night work for a factory or group or class or description of factories with adequate safeguards for safety and provision of transportation till the doorstep of their residence.

Amendment of Sections 64 and 65 of the Act to enhance the limit of overtime hours from the present limit of 50 hours per quarter to 100 hours per quarter. The amendment also proposes this limit to be increased to a maximum of 125 hours per quarter in public interest with the approval of State Government.

Presently only the State Governments are empowered to make rules under the Factories Act. It is now proposed to empower the Central Government also to make rules under the Act on some of the important provisions.

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Members participating in the meeting of Parliamentary Consultative Committee on Comprehensive Amendment in Labour Laws have urged the government for the effective and speedy implementation of labour laws along with the timely redressal of Grievances. In meeting held yesterday the members raised the issue of Child labour Laws alongwith the Contract Labour Law reforms. Union Labour & Employment Minister Shri Mallikarjun Kharge, who chaired the meeting assured the members for due consideration on the issue raised.

Welcoming the members the minister the minister said Labour being a subject in the Concurrent List where both Central and State Governments are competent to enact legislations. Ministry of Labour & Employment is presently administering 44 Labour Laws catering to diverse subjects, namely, occupational health & safety, employment services, training of apprentices, skill development, minimum wages, social security, industrial dispute, labour welfare, child labour etc. He said the Ministry has been reviewing various labour laws from time to time and taking action towards amendment of the labour laws keeping into consideration the changes in the socio economic scenario and the requirements of the workers in organized as well as in the unorganized sector.

Shri Mallikarjuna Kharge informed the members that last few years, amendments have been carried out in Payment of Wages Act, 1936 enhancing ceiling of workers from Rs.1,600/- to Rs.6,500/- per month and subsequently to Rs.10,000/- per month, Payment of Bonus Act, 1965, wherein the calculation ceiling and eligibility limit under the Act has been enhanced from Rs.2,500/- to Rs.3,500/- and from Rs.3,500/- to Rs.10,000/- per month respectively.

The Apprentices Act, 1961 has been amended to provide reservation for other backward classes. The Maternity Benefit Act, 1961 has been amended to enhance the medical bonus from Rs.250/-to Rs.1000/- and also empowering the Central Government to further increase it to maximum of Rs.20,000/- through Gazette Notification.

The Workmen’s Compensation Act has been amended to make it gender neutral and it is now called “the Employees’ Compensation Act, 1923. Besides this, the Compensation in case of death, disablement and funeral expense paid under the Act have also been enhanced. The Plantation Labour Act, 1951 has been amended to provide safety and occupational health care to plantation workers.

The minister said his Ministry has amended the Employees’ State Insurance Act, 1948 to improve the quality of delivery of benefits under the scheme and also to enable ESI infrastructure to be used to provide health care to workers of the unorganized sector. The Payment of Gratuity Act, 1972 has been amended to enhance ceiling on gratuity from Rs.3.5 lakh to Rs.10 lakh and to cover the teachers in educational institutions.

Also, the Industrial Disputes Act, 1947 has been amended to amplify the term “appropriate Government” defined under section 2(a) of the Act. The wage ceiling for coverage under the Act has been enhanced from Rs.1600/- to Rs.10,000/- per month to cover workmen working in supervising capacity. The amended provisions also provide direct access for the workman to the Labour Court or Tribunal.

Shri Kharge also informed that the Government has also introduced Bills in Parliament for Amendment in the following Labour Acts: –

(i) The Mines Act, 1952.
(ii) The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988.
(iii) The Inter-State Migrant Workmen (Regulations of Employment and Conditions of Service) Act, 1979.
(iv) The Child Labour (Prohibition & Regulation) Act, 1986.

It was also highlighted that other major Labour Acts which are under various stages of consideration for amendments are: –

(i) The Building and Other Construction Workers (Regulation of Employment & Conditions of Services) Act, 1996
(ii) The Factories Act 1948,
(iii) The Minimum wages Act 1948,
(iv) The Employees Provident Fund and Miscellaneous Provisions Act 1952,
(v) The Apprentice Act 1961
(vi) The Contract Labour (Regulation and Abolition) Act 1970
(vii) The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.

Shri Khrge solicited members cooperation & guidance in the formulation of amendments as well review of Labour Laws in the course of discussions. Shri Mangala Kisan (BJD) & Shri Ram Sunder Das (SP) were the members who participated in the dissussions. Besides, the Minister of State in the Labour & Employment Ministry Shri K.Suresh, Dr. Mrutunjay Sarangi, Secretary Labour & Employment and senior officers from the ministry were present in the meeting.

PTI

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