The Lok Sabha has passed the Factories (Amendment) Bill, 2016 on 10th August 2016 and this is now pending for the approval of the Rajya Sabha, after which it would require the President’s assent to be notified as an Act. To meet the increasing demands and facilitate ‘ease of doing business’ the Government of India has proposed to increase the allowable overtime duration. Furthermore, this amendment, if passed, is expected to enhance employment opportunities.

The proposed amendments are:

  1. To increase overtime limit of factory workers from 50 hours to 100 hours in a quarter
  2. To increase the overtime working hours for factories with “exceptional” workload, from 75 hours to 115 hours in a quarter.
  3. Central government or state government, in public interest, may increase the overtime limit further, to 125 hours in a quarter.

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