Working Hours, Overtime, and Weekly Offs: Legal Requirements for HR

Regulation of working hours, overtime, and weekly offs is one of the most frequently inspected and litigated areas of Indian labour law. While HR policies may appear compliant on paper, actual practice at the shop-floor or office level often creates exposure.

These requirements are governed by a combination of central and state laws—Factories Act, Shops and Establishments Acts, Contract Labour laws, and sector-specific rules. HR’s role is to translate these legal limits into attendance systems, shift rosters, and payroll controls.

This article explains the legal framework and practical HR responsibilities around working hours, overtime, and weekly offs.

Legal Framework Governing Working Hours

Depending on the nature of the establishment, the following laws apply:

• Factories Act, 1948 – manufacturing units

• State Shops and Establishments Acts – offices, IT, retail, services

• Contract Labour (R&A) Act – contractor manpower

• State-specific rules for special categories and exemptions

HR must first identify which law applies to which employee category.

Working Hours: What HR Must Control

Daily and Weekly Limits

Most laws prescribe:

• Maximum daily working hours

• Weekly caps (typically 48 hours)

• Mandatory rest intervals

Exceeding limits—even with employee consent—can still be a violation.

Spread-over and Breaks

Spread-over includes:

• Actual work time

• Rest intervals and breaks

HR must ensure that shift designs do not exceed the maximum spread-over hours prescribed by law.

Overtime: Legal Boundaries and HR Risks

When Overtime Is Permitted

Overtime is generally allowed only when:

• Work exceeds prescribed daily or weekly limits

• It is recorded accurately

• It is paid at the legally mandated rate

Unrecorded or unpaid overtime is a high-risk compliance gap.

Overtime Rates

Most laws require overtime payment at:

• Twice the ordinary rate of wages

HR must ensure payroll systems automatically apply correct multipliers.

Weekly Offs and Compensatory Holidays

Weekly Rest

Employees are entitled to:

• One mandatory weekly off

• Prior notice of weekly holiday schedules

Denying weekly offs without compensatory leave is non-compliant.

Compensatory Offs

If weekly off is missed due to business exigencies:

• Compensatory off must be granted within the prescribed period

• Records must clearly reflect the adjustment

HR Execution: From Policy to Practice

To stay compliant, HR should:

• Design law-compliant shift rosters

• Integrate attendance, overtime, and payroll data

• Monitor contractor compliance separately

• Conduct periodic audits of actual working hours

Legal compliance is tested on records and reality, not just HR policies.

Conclusion

Working hours and overtime violations are rarely intentional—but they are easy to detect and costly to defend. For HR, the solution lies in disciplined systems, real-time monitoring, and strong coordination between operations, payroll, and contractors.

When executed well, compliance in this area protects both the organisation and employee wellbeing.

HR Compliance Action Checklist: Working Hours & Overtime

🗹 Identify applicable law for each employee category
🗹 Define daily and weekly working hour limits clearly
🗹 Configure shifts and breaks within spread-over limits
🗹 Capture actual attendance accurately
🗹 Pay overtime at statutory rates without exception
🗹 Ensure weekly offs are granted and documented
🗹 Track compensatory offs where weekly rest is missed
🗹 Audit contractor working hours and OT payments
🗹 Keep records inspection-ready at all times

Working Hours, Overtime, and Weekly Offs: HR Compliance Snapshot

Conclusion--

Effective labour law compliance depends on how well HR operations, payroll, and business processes work together. When compliance is embedded into everyday workflows, organisations reduce risk, improve accuracy, and build sustainable governance systems. HR teams that prioritise integration over isolation are better positioned to manage compliance confidently and consistently.