Our Legal Guide has spoken. We are also helped by many Journo friends who’ve spoken to leading Lawyers and given us tremendously valuable feedback. This is in continuation of our last post BPO Union questions Evalueserve HR practices
From the word go, Evalueserve (and others running the same set of work conditions, IF they do so) are in the wrong, legally speaking. We are only trying to find out till now, and once we are sure accusations will fly. Till then it’s only a fact-finding mission for us.
If violating Companies were prosecuted (considering that were violating) then the total outstanding wage dues (collectively) would run into millions of dollars. Let us do some math.
Each employee working only 10 hrs over-time a week would have to be paid around Rs 100 per hour as over-time. For a KPO Company running even as low as 500 employees it clearly touches half-a-million-dollars mark per year.
Now multiply it by the number of KPO/ BPO (include IT to) Companies who indulge in this practice and we run into a few hundred million dollars.
Qualifying for probably the biggest ever BPO scam in history.
Whatever is said below is w.r.t the Service Industry (and Professional Services), which are generously being exempted of many provisions by most State Govts.
Allow us to share information we’ve managed to get together:
- The first thing a company caught in this cross-fire would do is to show a copy of an exemption from the State Shop and Establishments Act. Which would only be a half-baked truth, legally speaking.
- The above exemption is clear only when it comes to permission for working ‘after hours’ which are defined as ‘between 8 pm and 6 am or for women doing a night shift. It is also unambiguous when it comes to comply with the number of working hours employees can be made to work. For everything else it is very unclear.
- The exemption given to companies are almost silent on ‘exemption for pay’ on any over-time work put in by employees. Leaving it open to interpretation.
- The combined legal opinion goes totally against the companies who will make employees work beyond 8 hrs and not pay them any overtime. Incidentally overtime is usually calculated at twice the hourly wage (on gross salary).
- Now comes an interesting part. One State Govt which has given sweeping exemptions (but not a specific one exempting companies from over-time pay) which say that the exemptions shall be withdrawn on any ‘genuine complaint’ by an employee.
- Now let us go back and look at pay-against-work in a stand-alone light. Any Court of this country would take no more than a single hearing to pass a clear order in favor of an employee who worked extra and did not get paid for it.
Here’s the deal now – we are in the process of finding out from Labor Commissioners of Pune, Mumbai, Chennai, Hyderabad, Kolkata, Delhi, Gurgaon, Noida and a few smaller hubs of BPO activity in India. Once we get a clear picture of wrong-doing by companies following the practice we will initiate public action as well as legal action through a few volunteers (thanks) who would sue their respective companies and their respective labor offices for collection of their dues.
For everyone who has helped us, we thank you from the bottom of our hearts. We request your continued patronage to the combined efforts.
regards,
Chief
(BPO Union 2.0)
Posted by bpounion