Over Time.

Q57. Write short notes about Over time:

  1. Meaning,
  2. Causes,
  3. Effect.
  4. Steps for controlling over time.


  1. Meaning: Work done beyond normal working hours is known as overtime work. It is paid generally double the normal rate. According to the factories act, 1948. A worker is entitled to overtime when he works for more than 9 hours on any day or more than 48 hours in a week. Difference between normal and overtime rate is known as over time premium.
  2. Causes:
    1. Urgency of work to customer.

    2. Shortfall in production due to some unexpected development.
    3. Shortfall in production due to same fault of Management.
    4. Seasonal nature of business.
    5. Resorted to take advantage of an expanding market or of rising demand.

  3. Effect: It increase cost in following ways:
    1. Double rate of wages.
    2. Low efficiency during over time.
    3. Output Falls during normal working hours.
  4. Steps for controlling over time:
    1. Watch on production during normal working hours.
    2. Prior sanction from competent authority.
    3. Upper limit fixed for each worker.
    4. Proper reporting of overtime to concern authority.
    5. Comparison of rate of output during normal hours and during overtime.

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