Work-life balance is a big topic in 2025 – but so is compliance.
In Gujarat, many corporate agencies and companies still misunderstand how working-hour limits and overtime pay actually work.
It’s not just about how long your team works; it’s about how you record, compensate, and manage those hours under state law.
Even one extra hour beyond the 48-hour weekly limit can legally qualify as overtime – and skipping it can trigger penalties or inspections.
This article simplifies the entire framework so employers can stay compliant, protect their reputation, and maintain fair workplace practices.
The Legal Foundation: Gujarat Shops and Establishments Act, 2019
For non-factory workplaces – including corporate offices, digital agencies, IT companies, startups, and service-based firms – the governing law is the
Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019.
It clearly defines limits on working hours:
- Maximum 9 hours per day
- Maximum 48 hours per week
- One mandatory weekly off day (usually Sunday or another fixed day)
Anything beyond this limit must be treated as overtime.
Understanding Overtime Rules in Gujarat
Once an employee crosses 48 hours in a week, the employer is legally obligated to treat that extra time as overtime.
Here’s how it works:
| Parameter | Rule |
| Daily limit | 9 hours |
| Weekly limit | 48 hours |
| Overtime pay | 2x normal hourly rate |
| Max overtime allowed | Up to 12 hours per day (with conditions) |
| Record format | Form D – Overtime Register |
| Penalty for violation | ₹1,000 to ₹10,000 for first offence |
Even if the overwork is just 1 hour and 30 minutes, it qualifies as overtime under law.
Example: What If a Team Works 49 Hours and 30 Minutes a Week?
Let’s say your agency’s design team worked late a few nights to deliver a project.
Their total weekly logged hours come to 49 hours and 30 minutes.
Here’s what happens legally:
- The extra 1.5 hours must be counted as overtime.
- It must be paid at double the regular hourly rate.
- The entry must be recorded in the company’s overtime register (Form D).
- If unpaid or unrecorded, the company risks penalties and inspection notices.
There’s no “grace time” or tolerance zone in the Act – the law treats even 30 extra minutes as excess work.
Exemptions for IT, ITES, and Financial Services
Gujarat has granted temporary exemptions to certain sectors from strict working-hour limits.
Industries included:
- IT and ITES (Information Technology Enabled Services)
- Financial Services companies
These businesses are exempt from Section 12 (Working Hours) and Section 14 (Spread-over limits) of the Act – but the exemption is not absolute.
They must still:
- Maintain proper attendance and wage records.
- Provide one weekly rest day.
- Pay overtime if total weekly hours exceed 48.
- Follow safety and welfare conditions for late-night work.
In short – flexibility, not immunity.
Employer Responsibilities Under the Law
Employers have clear legal duties when it comes to working hours and overtime:
- Record every working hour accurately through a register or digital tool.
- Get prior approval for overtime from the reporting manager or HR.
- Pay overtime wages at double rate promptly.
- Ensure weekly off and rest intervals are not skipped.
- Store records for at least 3 years for inspection.
Failure to comply can lead to:
- Monetary penalties (₹1,000-₹10,000)
- Labour Department warnings
- Potential prosecution for repeated non-compliance
HR Policy Example: Stay Compliant and Transparent
Here’s a sample policy line your company can include in employee handbooks:
“Employees shall not work beyond nine hours in a day or forty-eight hours in a week without prior written approval. Any approved extra hours shall be treated as overtime and compensated at twice the regular wage rate as per the Gujarat Shops and Establishments Act, 2019.”
This simple clause keeps you audit-ready and builds trust internally.
How to Calculate Overtime Pay
Let’s simplify the math with an example:
Employee salary: ₹30,000/month
Standard work hours: 48 hours/week × 4 weeks = 192 hours/month
Hourly rate: ₹30,000 ÷ 192 = ₹156.25/hour
Overtime rate: ₹156.25 × 2 = ₹312.50/hour
If an employee works 2 extra hours in a week, pay:
2 × ₹312.50 = ₹625 extra as overtime.
This transparency helps avoid disputes and keeps payroll compliant.
Disciplinary Measures (for Unapproved Overtime)
Sometimes employees stay late voluntarily or log hours incorrectly.
In those cases, the employer can:
- Issue a written warning for not following approval procedure.
- Adjust workload or project management processes.
- Emphasize time discipline in internal reviews.
However, any work performed must still be compensated – unpaid overtime, even if unapproved, violates labour law.
How Employees Can File a Legal Complaint in Gujarat
If an employee feels overworked, unpaid, or harassed regarding overtime, they can file a complaint with the Gujarat Labour Department under the Shops and Establishments Act, 2019.
Step-by-Step Complaint Process
1. Collect evidence:
Keep copies of:
- Attendance records or time logs
- Salary slips showing no overtime pay
- Email/WhatsApp proof of extended hours
2. File a complaint online or offline:
- Visit the Labour & Employment Department, Government of Gujarat official site:
👉 https://labour.gujarat.gov.in - Or submit a written complaint at the local Labour Commissioner’s office.
3. What to include:
- Full name, company name, designation
- Nature of violation (unpaid overtime, excess hours, denial of weekly off, etc.)
- Duration and evidence of non-compliance
4. What happens next:
- The Labour Inspector investigates the case.
- The employer receives a legal notice.
- If violations are proven, the department orders payment or fines under Section 42 of the Act.
Employees can also approach a Labour Court if the issue remains unresolved.
💡 Pro Tip: Complaints are confidential, and employees cannot be legally terminated for raising genuine labour grievances.
Compliance Tips for Employers and HR Managers
- Cap total hours at 45–46 per week to maintain a safe margin.
- Use digital time-tracking tools (e.g., Zoho People, Asanify, or Hubstaff).
- Automate overtime alerts when employees cross 47 hours.
- Train managers to authorize overtime correctly.
- Pay double wages for all logged overtime.
- Audit monthly to ensure records match payroll entries.
- Keep written consent for extended work or flexible hours.
These small systems keep your business protected and build credibility with staff and inspectors.
Why Compliance Isn’t Just About Avoiding Fines
Compliance reflects culture.
Companies that respect labour laws send a strong message about transparency, respect, and professionalism.
Fair overtime pay not only reduces attrition but also improves productivity and morale – because your team knows their time is valued.
In an era where employer reputation impacts hiring and client trust, compliance isn’t paperwork – it’s brand protection.
Conclusion
The 48-hour weekly limit in Gujarat isn’t just a guideline – it’s the law.
Even a 30-minute overshoot counts as overtime, and employers are responsible for recording and compensating it.
If your agency or corporate team wants flexibility, design it within the legal framework.
Respect the 48-hour cap, pay double for approved overtime, and document everything.
That’s how smart companies in Gujarat stay compliant – and respected.
TMWala can help you this with all problems you face regarding this.
