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exemptions (but not a specific one exempting companies from over-time pay) which say that the exemptions shall be withdrawn on any ‘genuine complaint’ by an employee.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)
BPO Union | OneForAll-AllForOne 
Congratulations for the great work you are doing. I am not sure of the applicable labour laws in BPO, but in IT, the broiler plate contract clearly mentions that the job might require working overtime and in night shifts, and that no additional compensation will be paid. I don’t think the validity of this clause has ever been challenged in a court.
Cheers!
MCLA
Dear MCLA,
Thank you for the comment. We most humbly submit that nowhere can anyone have a clause exempting Companies to get work and not pay for it. We mean over-time. If you look at the Labor Law in India it suggests a clear over-time payment for anything beyond 8 hrs. It goes against the principles of natural justice and right to earn a livelihood. In effect if what you contend was to happen we would go back to ‘slavery’.
We refuse to believe that Indian Democracy has ever allowed that, made any concessions for it at any point or will ever do so in the future.
We do hope that we are wrong and that the Companies where employees work beyond the 8 hrs are paying over-time. But if not then yes, the clause stands challenged. We hope to logically, legally and socially prove our point to the extent of it becoming a HR benchmark for everyone in the new-economy-knowledge-industry to follow.
regards,
Chief
(BPO Union 2.0)
I completely agree. It’s against natural justice and good contract theory to have an open ended contract where the company has clear cut and limited obligations but the worker has ambiguous and potentially unlimited obligations. I think this clause just needs challenging in courts once, and a precedence will be set one way or the other.
If you like you can check out one of my favourite thinkers, Kevin Carson’s “Labor Struggle in a Free Market”. Among other things he discusses why typical employee contracts are “incomplete”: http://www.theartofthepossible.net/2008/07/24/labor-struggle-in-a-free-market/
Cheers!
By the way, do you know that Indian law in all states actually allows employees to work for six days a week for 8 working hours per day. In fact, this rule is followed by the Indian government itself as well as many Indian companies.
Working six days a week at 8 working hours per day whereas according to you Evalueserve and other companies are still requiring less than 48 working hours per week.
Shouldn’t you ask the Indian government for paying overtime for its employees who are working 48 hours per week?
Cheers
Dear UCLA,
We are aware, thanks anyways for refreshing it for others. Yet if you calculate 10 hrs a day for even a 5 day week, it totals to 50 hrs, still in excess of the legally permitted time.
But we are not contesting the hours put it. You got it wrong if that’s what you understood … we are contesting the payment of over-time (or non-payment of it). And we would like companies to make us work for 14 hrs if it is at the ease of the individual and the company, but please do not short change someone who leaves their house for a hard day’s work. We want companies to be a bit more humane (does not apply to those who already are) and not take undue advantage of peolpe out to make a sincerely honest living for their families and themselves.
regards,
Chief
(BPO Union 2.0)
My wife works for Tata Business Support Services in Hyderabad and they have to take calls for 9.5 hours everyday. An additional 1 hour is spread in between for breaks. (i.e they are at work for 10.5 hours) She has 5 working days a week. Do you think this is legal as per labour laws? i feel very sad for my wife taking over 150 calls a day and getting headaches at the end of the day.
Do suggest. Thanks!
Don’t worry all you guys of BPO union, see yourself where were you before this industry came into existence, see yourself without the outsourcing industry and realize if you can work for 9 hrs/10 hrs a day or not. everyone of you wants a hefty package but no one wants to work…wow…but this economic struck will get everyone streamlined…cheers
hi
Correction:
Dear ’s’,
Circumstances change from company to company..i can assure you that working at TBSS is a pain in the wrong place…there might be many other who are far worse. The BPO Union gives these people a voice against companies in a largely unregulated space.
Its wrong to say people here just want to have fun and get paid a hefty package…they work their asses out for what they get…else why are the companies paying that much at the first place? cos’ they cannot get suitable talent at lower salaries to work with the unholy time schedules that BPOs provide employees spoiling their sleep and health.
Also, “Hefty” pay is not the case across the board. There are domestic call centres like TBSS which offer peanuts( 9300 gross pm) for the 10.5 hours a day that they make employees work.
Then the employees should not join these companies or quit their jobs when they find out that they are made to work such hours.. I have seen labor contracts which stipulated such production norms that workers would work for 3 hours and then play cards for 5-6 hours in factories. Hope we dont land up there in the service industry.
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