Hyderabad: At a time when IT employees are taking to the streets alleging long working hours, unpaid overtime and arbitrary termination, data on labour claims shows that the amount recovered has nearly tripled in five years — from Rs 17.97 crore between 2016-17 and 2020-21 to Rs 49.16 crore between 2021-22 and 2025-26.The claims largely relate to payment below prescribed minimum wage, and non-payment on of wages on rest days and overtime, among other violations.They were submitted under provisions of multiple Acts including the Minimum Wages Act, 1948 which prescribes which prescribes the minimum rates employers must pay skilled and unskilled workers.As per the data submitted by the ministry of labour and employment in Rajya Sabha, the amount was recovered from 7,817 establishments between 2016-17 and 2020-21 and 7,852 establishments in the subsequent five years. This is a rise of just 0.4% in the number of establishments against a 174% increase in the amount recovered.The data, however, covers only establishments under the Centre’s labour enforcement jurisdiction and excludes those covered by state labour authorities.According to C Vinod Kumar, president, Forum for IT Employees, the data captures only a fraction of the problem, as many employees do not pursue formal claims despite working beyond prescribed hours. “On paper we are supposed to work for 40 hours a week, but in reality, work never stops as many are forced to work from home after work hours to meet deadlines,” he said.Even, Sridhar Merugu, who has been seeking compensation from an MNC to compensate him for overtime hours he worked during his 14-year tenure, claimed these numbers are just the tip of the iceberg. “Because not even 1% take the legal route or approach labour courts despite them facing serious issues,” he said.The data further shows that the average amount recovered per establishment rose from around Rs 23,000 in the first five-year period to about Rs 62,600 in the subsequent five years — a nearly 2.7-fold increase.Members of the Hyderabad Software Enterprises Association (HYSEA), meanwhile, said overtime and extended working hours were not effectively regulated in the past. However, the new labour codes, which came into effect in Nov 2025, seek to address these issues. According to them, several companies are already reporting higher employee costs as they streamline these practices, including overtime without pay.GFXRecoveries rose from Rs 5.24 crore in 2020-21 to Rs 9.48 crore in 2021-22 and crossed Rs 10 crore in each of the next three years.In 2024-25, the amount recovered touched a 12-year high of Rs 14.21 crore, even though claim cases were filed against only 1,133 establishments.In comparison, 2,325 establishments faced claim cases in 2022-23, when Rs 10.55 crore was recovered.
