The time worked over and above the normal hours is overtime. The remuneration usually paid for the overtime work is at double the normal rate. The need for over time work arises due to:
- Increase in demand for the products where the production during the normal hours falls short to meet it;
- Shortage of workers due to absence or non-availability and so it is decided to give overtime work to the existing staff;
- Utilization of perishable raw materials by working overtime;
- Execution of urgent orders, or to complete the work o9n the same day;
- Shortage of equipments, machines, or space for the completion of jobs;
- Lack of administrative control on workers, on account of which the production during normal hours remains less the standard output and overtime work has to be done by the workers.