Judgment

KHALID, J. :- What is the rate of overtime allowance admissible to the employees of the two appellants working in their establishments situated in the State of Tamil Nadu is the only question raised in these appeals by special leave?

2. M/s. Philips India Ltd. the appellant in the first batch of appeals - a company incorporated under the Companies Act has an establishment in the State of Tamil Nadu. This establishment is governed by The Tamil Nadu Shops and Establishments Act, 1947 (Act for short). According to the practice followed by the company, the employees of the establishment had to render service for 39 hours a week, made up of 7 hours per day from Monday to Friday and 4 hours on Saturday. Effective from March 29, 1985, when the company switched over to five days week, it still retained the total number of working hours per week as 39 by extending the working hours from Monday to Thursday at 7-3/4 hours and 8 hours on Friday. Thus the total working hours per week remained constant at 39. The company also introduced the rate, of overtime payment at 11/2 times the ordinary wages for work done over and above the maximum number of working hours per week as well as for wo