Govt Servants Required To Be At Disposal Of Govt All The Time; Can’t Claim Overtime Allowance Under Factories Act
Contents News/Article Date: 19th April 2023
Relating to which Act: The Factories Act 1948
Penalty under the Act: Section 96A of the Factories Act, 1948 defines the penalty for the contravention of certain provisions, such as Sections 41B, 41C, and 41H. Anyone who disobeys or violates any of the rules or the provisions of Sections 41B, 41C, or 41H will be sentenced to 7 years in prison and a fine of Rs. 2,00,000
Applicable to which State: All the States and Establishments covered by the factories act.
Type: A bench comprising Justices V Ramasubramanian and Pankaj Mithal made this significant ruling while deciding the issue whether employees working as supervisors at the Security Printing & Minting Corporation of India (a company under the Ministry of Finance responsible for minting currency notes) are entitled to double overtime allowance as per Chapter VI of the Factories Act 1948.
Pertains to: Setting aside a judgment of the Bombay High Court which held that the employees were entitled to overtime benefits as per the Factories Act, the bench explained that appointment either to a civil post or in the civil services of the Union or the State, is one of a status and that it is not an employment governed strictly by a contract of service or solely by labour welfare legislations.
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And in this instance: The Supreme Court held that the Tribunal as well as the High Court did not consider the distinction between persons in Government service and those in private service and the effect of the statutory rules upon the conditions of service of the respondents, including their liability to work for extra hours.
“In any case, the respondents, who are holders of civil posts or in the civil services of the State till the year 2006, could not have claimed the benefits of the provisions of Chapter VI of the 1948 Act, dehors the service rules”, the bench observed while allowing the appeals.
However, considering the fact that some of the employees have already retired and some others have passed away during the pendency of the appeals, the Court directed not to effect any recovery from those to whom payments have already been made.
Case Title: Security Printing & Minting Corporation of India Ltd. & Ors. Etc. vs Vijay D. Kasbe & Ors. Etc. Citation: 2023 LiveLaw (SC) 321
Subject: Govt Servants Required To Be At Disposal Of Govt All The Time; Can’t Claim Overtime Allowance Under Factories Act
Appended is the complete news item
Govt Servants Required to Be At Disposal Of Govt All The Time; Can’t Claim Overtime Allowance Under Factories Act: Supreme Court
Source: Legal Vidhiya and SSC online
The Supreme Court of India recently delivered a significant ruling regarding the payment of overtime allowances to government employees under the Factories Act. In a case where government employees sought payment for overtime worked beyond eight hours a day, the Court ruled that they are not entitled to claim overtime allowances under the Factories Act.
The Court examined the provisions of the Factories Act, which regulates the working conditions in factories, and observed that the Act does not apply to government establishments. The Court emphasized that the Act applies only to factories engaged in manufacturing processes and does not extend to government departments or establishments.
The ruling has significant implications for the payment of overtime allowances to government employees in India. Until now, government employees were entitled to claim overtime allowances under various laws and regulations. However, with this ruling, the Court has clarified that the Factories Act is not applicable to government establishments and, therefore, government employees cannot claim overtime allowances under this Act.
This decision is likely to impact a large number of government employees who work beyond their regular hours, especially in essential services such as healthcare, police, and transportation. The ruling could also have wider implications for the interpretation and applicability of labour laws in India
In conclusion, the Supreme Court’s ruling has clarified the scope of the Factories Act and its applicability to government employees. The decision is likely to have far-reaching implications for the payment of overtime allowances and the working conditions of government employees in India.
The Supreme Court has held that government employees cannot claim double overtime allowance as per the Factories Act, if the service rules do not provide for it.
A bench comprising Justices V Ramasubramanian and Pankaj Mithal made this significant ruling while deciding the issue whether employees working as supervisors at the Security Printing & Minting Corporation of India (a company under the Ministry of Finance responsible for minting currency notes) a company under the Ministry of Finance responsible for minting currency notes) are entitled to double overtime allowance as per Chapter VI of the Factories Act 1948.
Setting aside a judgment of the Bombay High Court which held that the employees were entitled to overtime benefits as per the Factories Act, the bench explained that appointment either to a civil post or in the civil services of the Union or the State, is one of a status and that it is not an employment governed strictly by a contract of service or solely by labour welfare legislations.
The bench observed that government servants enjoy several special privileges which are not available to labourers covered under the Factories Act, such as periodic pay provisions. So, a claim by those in government servants for benefits under the Factories Act must be examined to see “whether” it is an attempt to get the best of both the worlds”
Persons who are not holders of civil posts nor in the civil services of the State but who are governed only by the (Factories Act )1948 Act, may be made to work for six days in a week with certain limitations as to weekly hours under Section 51, weekly holidays under Section 52, daily hours under Section 54, etc. Workers covered by Factories Act do not enjoy the benefit of automatic wage revision through periodic Pay Commissions like those in Government service. Persons holding civil posts or in the civil services of the State enjoy certain privileges and hence, the claim made by the respondents ought to have been tested by the Tribunal and the High Court, in the proper perspective to see whether it is an attempt to get the best of both the worlds.
The Court further noted that as per the relevant service rules, unlike those employed in factories and industrial establishments, persons in government service are required to place themselves at the disposal of the Government all the time.
“In the light of the above Rule, there was actually no scope for the respondents to seek payment of Double Over Time Allowance. It is needless to say that no benefit can be claimed by anyone dehors the statutory rules, the Court observed.
Here, the claim of the employees was not based on any service rule but on Section 59(1) of the Factories Act. Since, the governing services rules did not provide for any overtime allowance, their claim was held to be untenable.
The Supreme Court held that the Tribunal as well as the High Court did not consider the distinction between persons in Government service and those in private service and the effect of the statutory rules upon the conditions of service of the respondents, including their liability to work for extra hours.
“In any case, the respondents, who are holders of civil posts or in the civil services of the State till the year 2006, could not have claimed the benefits of the provisions of Chapter VI of the 1948 Act, dehors the service rules”, the bench observed while allowing the appeals.
However, considering the fact that some of the employees have already retired and some others have passed away during the pendency of the appeals, the Court directed not to effect any recovery from those to whom payments have already been made.
Case Title : Security Printing & Minting Corporation of India Ltd. & Ors. Etc vs Vijay D. Kasbe & Ors. Etc.
Citation: 2023 LiveLaw (SC) 321