ECONOMICS

Detailed explanation-1: -If workers are paid on the basis of time, some difference may arise between the time for which they are paid on the basis of time and the actual time they spend on production. The difference is called Idle Time, i.e., the employer pays but, in return, derives no benefit.

Detailed explanation-2: -Idle time, sometimes referred to as waiting time, is the time lost due to work stoppages in which machines and/or employees are ready and available but can not be productive. It should not be confused with planned or unplanned downtime.

Detailed explanation-3: -Idle time is paid time that an employee, or machine, is unproductive due to factors that can either be controlled or uncontrolled by management. Idle time can be classified either as normal or abnormal. Minimizing idle time is key if a business wants to maximize efficiency over long periods of time.

Detailed explanation-4: -a) Idle time refers to the labour time paid for but not utilized on production. Whereas, overtime refers to the labour time paid for working beyond normal working hours as specified by Factories Act or by mutual agreement.

Detailed explanation-5: -Idle time can be normal or abnormal. Normal idle time is part of the normal production cycle and is caused by factors beyond the control of management.