Under Section 14 of the Code on Wages, 2019, what is the

Solution

Section 14 of the Code on Wages, 2019 provides that where an employee whose minimum rate of wages has been fixed works on any day in excess of the number of hours constituting a normal working day, the employer shall pay them for every hour or part of an hour so worked in excess, at the overtime rate which shall not be less than twice the normal rate of wages. This double-rate overtime rule applies regardless of whether the excess work is on an ordinary working day or a rest day. The normal working day hours and the definition of what constitutes a working day are to be determined in accordance with the minimum wage notification applicable to that scheduled employment. The Code does not fix a uniform national cap on working hours that is governed by the OSH Code, 2020 but the overtime compensation at double the normal wage rate acts as a financial deterrent against excessive overtime by employers. Failure to pay overtime wages at the prescribed rate constitutes a violation of the Code and attracts penalties under Chapter VIII.