LexCLOTHING FACTORY, NATIONAL WORKERS' UNION AVADI, MADRAS, REPRESENTED BY ITS SECRETARY versus UNION OF INDIA BY ITS SECRETARY, MINISTRY OF DEFENCE, NEW DELHI AND ORS.
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~-- _,. CLOTHING FACTORY, NATIONAL WORKERS' UNION AVADI, MADRAS, REPRESENTED BY ITS SECRETARY v. UNION OF INDIA BY ITS SECRETARY, MINISTRY OF DEFENCE, NEW DELHI AND ORS. APRIL 20, 1990 [A.M. AHMADI AND M. FATHIMA BEEVI, JJ.] A B Factories Act, 1948-Section 59 and Presidential Order dated September 1, 1959 and February 13, 1963-0rdinance Clothing Factory-Payment of over-time wages for piece rated workers- C Computation of. The controversy that requires determination in this appeal is whether piece-rated workers are entitled to overtime wages for work done beyond the normal hours of 44-3 /4 hours and up to 48 hours in a week, i.e. for 3-V. hours in a week and the rate at which they should be D paid the overtime wages for those hours. The workers of the Clothing Factory are divided Into two categories viz., (i) day workers and (ii) piece-rated workers. Whereas the day workers are paid wages in the scale of Rs.260-400, on the basis of their actual attendance the piece-rated workers are paid on actual E output or production calculated on the basis of time required for mak- ing the item at an hourly rate to be arrived at in accordance with the formula prescribed for the purpose. According to the appellants, the piece-rate system was introduced sometime in 1963 and since then the piece-rate workers were paid overtime wages accordingly for work done beyond the normal working hours i.e. 44-3/4 hours (8 hours per F day other than Saturdays when the working hours are 4-3/4 hours), but the same was abruptly stopped from 1983 so much so that they were even denied the wage at the normal rate for work done beyond normal hours and upto 48 hours. Being dissatisfied, the appellant Union filed a writ petition in the High Court of Madras praying for a suitable direction to the respondents to pay the piece-rate workers extra or overtime G wages at the rate prescribed by section 59(1) of the Factories Act if the total working hours of any workman exceeded 44-3 /4 hours in a week. The learned Single Judge of the High Court by his order dated 6th December 1983, dismissed the writ petition. An appeal was preferred by the appellant Union but whilst the said appeal was yet pending disposal by the High Court, the appellant Union filed yet another writ H 617 A B 618 SUPREME COURT REPORTS (1990] 2 S.C.R. petition in the same High Court, which was later transferred to the Central Administrative Tribunal and which has been disposed of by the Tribunal by the impugned order. Hence this appeal by the Union after obtaining special leave. The appeal preferred against the order of the learned single Judge of the High Court was later dismissed for default. The workers claim that they are entitled to extra wages for these 3-1/4 hours at double the normal rate in accordance with section 59(1) of the Factories Act whereas the Union denies such liability. Dismissing the appeal, this Court, C HELD: There is no dispute that the workers are paid overtime wages for work done in excess of 9 boors on any day or 48 hours in any week in accordance with section 59 of the Factories Act. This section 1- does not provide for overtime wages for work done in excess of the -..-·~ normal working hours and upto 48 hours. [624C] D Under the Presidential order of 1st September, 1959, overtime wage was payable for work in excess of normal working hours and upto 9 hours on any day or 48 hours in a week at the rate prescribed in the departmental rules. By the subsequent Presidential Order of 13th February, 1963, the method of calculation and payment of overtime E wage to piece workers was outlined. Under these orders the day work- '>--- ers are allowed overtime wages lbr working beyond the normal working hours whereas piece workers are allowed piece work profits as may be earned by them for working beyond normal working hours and upto 48 boors in a week. [625A-BI F In the instant case, the grant of overtime wages for the period in excess of the normal working hours of 44-Y.. per week and upto 48 hours is governed by the relevant departmental rules and Section 59( 1) of the Factories Act comes into play only if a piece worker has worked beyond 9 hours in a day or 48 hours in a week and not otherwise. Further, piece workers are allowed piere work profits '"' may be earned by them for working G beyond normal working hours and upto 48 hours in a week. [625G-H] Union of India v. C.H. Kokil, (1984] Suppl.
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