Boss2966
Industrial Relations
Janarthanan .v
Human Resource Business Partner
+4 Others

Thread Started by #janarthanan .v

Dear Friends,
If 'A' employee works on National Holiday (for eg : 26th Jan), What he is eligible for getting wages in below? Assume his daily average wages Rs.200/-.
a) Two times of his Average Wages, i.e., one normal paid wages + one more wages, totally Rs.400/-
b) Triple Wages of his Average Wages, i.e., One Normal paid wages + 2 wages for his actual workings (Like overtime concept), totally Rs.600/-.
Seeking your kind reply on the above please, as I am not able to catch up the clear directions from the books.
I request you to add attachments, if you have any captures from the legal book about this.
Regards,
Janarthanan V
8294630594

25th February 2012 From India, Madras
Dear Mr.Janarthanan
I think you are referring to an industrial establishment situated in Tamilnadu. In that case, the Tamilnadu (Industrial Establishments)National and Festival Holidays Act would apply for the grant of the national/festival holiday and for deciding the quantum of wages payable in case a worker is required to work on a national/festival holiday. Section 5(1)(b) of this Act indicates the wages to be paid if a worker works on a national/festival holiday. If he is allowed a holiday in lieu of working on a national or festival holiday then he is entitled to only a single wage for working on a national/festival holiday. In case he does not opt to avail a holiday for working on a national/festival holiday then he is entitled to twice the wages that is 1 + 1 =2 for working on a national/festival holiday. The term "twice the wages" occurring in section 5(1)(b) means wages for the day and another wages as extra wages for working on the national/festival holiday.
With regards
26th February 2012 From India, Madras
Dear Mr. V.Harikrishnan,
Thanks for your prompt reply. but I referred the Model Standing Order and it is stated that to eligible for thrice Wages, i.e., 1 normal paid wages and 2 wages (in OT View).
Seeking your kind reply.
Thanks and Regards,
V.Janarthanan
27th February 2012 From India, Madras
Hi, 93 views, but no reply from except Mr. V.Harikrishnan. Please add your reply in this. Jana
27th February 2012 From India, Madras
Kindly properly check it, only double the wages will be provide, or are you mentioning that festival holidays falls on sunday?
27th February 2012 From India, Madras
Dear Mr.Janarthanan Can you please indicate the specific clause in the model standing orders referred to in your post. With regards V.HARIKRISHNAN
28th February 2012 From India, Madras
Dear Janarthanan
This querry has already been clearly answered by Mr. Hariharan. Hence this querry does not require further more replies. If you are not going to give any C/Off, then you have to pay regular 1 day wages + Double OT for the No of hours he worked. If you are sparing him for 1 day C/Off, then you have to pay only Double OT.
Hope you understand the concept. Here you cannot make any other rules in your Model Standing Orders against the Act.
28th February 2012 From India, Kumbakonam
Dear boss2966,
You are again twisting Mr. Hari's concept. Please read carefully that he is stating one regular wages and one day extra wages. But you are stating for 3 wages.
I am not clarifying, as i didnt find clear details from law books.
Please revert back to my question.
Jana
28th February 2012 From India, Madras
Dear Jana
If you engage any workmen on Weekly off, you can compensate with C/Off and pay regular wages or you have to pay Overtime for the work he has done (Normally overtime is double the rate of wages). As you seek clarification here you have to pay him the Paid Holiday wages + Overtime Wages for the hours he worked. Hence if any person works on Deepavali day he must be paid with Present for 1 day (Whether he works on that day or not) and if he works for 8 hours he will be getting Overtime wages (Double OT Rate of Wages). Hence it will become thrice the wage rate.
Hope you have understood the concept of Paid Holiday Wages and Overtime procedure.
28th February 2012 From India, Kumbakonam
Dear Mr.Janarthanan

As the views expressed by me and the views of Mr.Bhaskar in this thread are at variance I feel that I need to place my views in the proper perspective.

A. The following laws relating to labour regulate the working conditions of workmen/employees in India. These laws have all India applicability.

1. Beedi and Cigar Workers(Conditions of Employment)Act 1966.

2. Building and Other Construction Workers (Regulation of Employment and Conditions of Service)Act 1996.

3. Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act 1981.

4. Dock Workers (Regulation of Employment) Act 1948.

5. Factories Act1948

6. Inter State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979.

7. Mines Act 1952.

8. Motor Transport Workers Act 1961

9. Plantation Labour Act 1951.

10. Sales Promotion Employees(Conditions of Service) Act 1976

11. Weekly Holidays Act 1942.

12. Working Journalists (Conditions of Service and Miscellaneous Provisions)Act 1955.

B. Apart from the above legislations having all India applicability, which regulate the working conditions of workmen/employees employed in different sectors of employment, almost each State in India have passed legislation to regulate the working conditions of workmen/employees employed in Shops, Establishments and Commercial Establishments. These Acts, are applicable only in the particular State which had enacted that law.

C. The legislations listed in paragraph A above do not provide for the grant of national/festival holidays and there is no law having all India applicability which requires an employer to grant national/festival holidays to his employees. Some of the States might have amended the laws enumerated in paragraph A to incorporate the grant of national and festival holidays. Such amendments will have force only within the States carrying out those amendments. Some of the laws passed by individual States to regulate the working conditions of employees employed in Shops and Establishments may provide for the grant of national/festival holidays to those employees. Some States like the State of Tamilnadu have passed separate legislations requiring the employer to grant national/festival holidays to his employees. In Tamilnadu, the Tamilnadu (Industrial Establishments) National and Festival Holidays Act requires an employer of an industrial establishment to grant in a year four national holidays and five festival holidays to his employees. This Act defines the term “industrial establishment” and all industrial establishment situate in Tamilnadu which come within that definition are covered by the provisions of this Act and the workmen/employees as defined in that Act and who are employed in such “industrial establishments” are entitled to four national holidays with wages and five festival holidays with wages in a year. The Tamilnadu Act referred to in this paragraph also gives power to the employer to require an employee to work on a national/festival holiday. This Act also prescribes the rate of wages to be paid to the employee who is required to work on a national/festival holiday. According to this Act if an employee is required to work on a national/festival holiday he has to be given wages for that day and a holiday with wages on a day within three days prior to the national/festival holiday or within three days subsequent to the national/festival holiday. In the alternative the employee who is required to work on a national or festival holiday could be granted “twice the wages”. The choice is that of the employee and not that of the employer. This Act is specifically silent as to the entitlement of a national/festival holiday if the national/festival holiday falls on a weekly holiday. The presumption is that if a national/festival holiday falls on a weekly holiday the worker is not entitled to any other additional benefit.

D. Now, coming to your example of the national holiday on 26th January 2012,I assume for the purposes of this discussion that the “industrial establishment” referred to by you is a factory as defined under the Factories Act and is situated in Tamilnadu. This day is a Thursday. If 26th January 2012 happens to be a weekly off day for the worker then he gets no benefit of the Tamilnadu Act. If it is a working day for the worker, then he can avail the national holiday on that day. If he is required to work on 26th January 2012, then the options to the worker in Tamilnadu are (i) he could claim to be paid for 26-1-2012 twice the wages(1+1 =2) or (ii) In the alternative he has to be given a holiday with wages either on 23rd January or 24th January or 25th January or 27th January or 28th January or 29th January.

E. The next question is whether any overtime is involved if this worker is required to work on 26th January. I again assume for the purpose of this discussion that the daily hours of work for the worker in the example who is assumed to work in a factory is 8 hours per day. Therefore the weekly hours of work would be 48 hours per week. According to the Factories Act(I have assumed for the purposes of this discussion that the worker is employed in a factory in Tamilnadu) the worker is entitled to get overtime if he works for more than 9 hours in a day or for more than 48 hours in a week.

F. Now please consider the example. If the weekly holiday for the worker falls on 26th January 2012 and if he is not required to work on 26th January 2012 then there are no issues. For the purpose of this discussion I have assumed that the weekly off of the worker falls on Wednesday. If the worker is required to work on 26-1-2012 according to the Tamilnadu Act he should be given twice the wages for working on 26-1-2012 or he should be give a holiday with wages on any one of the three days following or preceding 26-1-2012. The following table indicates the hours he would have worked in each day and during the whole week if the worker is required to work on 26-1-2012 and is given a holiday with wages on 24-1-2012 in lieu of the work on 26-1-2012.

Day Date Hours Worked

Sunday 22-1-2012 8

Monday 23-1-2012 8

Tuesday 24-1-2012(Holiday in lieu of work on 26-1-2012) 0

Wednesday Weekly off 0

Thursday 26-2-2012 (Required to work by the employer) 8

Friday 27-1-2012 8

Saturday 28-1-2012 8

Total hours worked for the week 40

The worker had not worked for more than 48 hours in the week and he has not worked for more than 8 hours in any day and is therefore not entitled for any overtime. In case the worker is given twice the wages for working on 26-1-2012 then the hours he would have worked during each day and during the week will be as indicated in the following table.

Day Date Hours worked

Sunday 22-1-2012 8

Monday 23-1-2012 8

Tuesday 24-1-2012 8

Wednesday 25-1-2012 (Weekly off) 0

Thursday 26-1-2012 (Required to work on

this National Holiday) 8

Friday 27-1-2012 8

Saturday 28-1-2012 8

Total hours worked during the week. 48

In this case also the worker has not worked for more than 8 hours in a day or for more than 48 hours in the week. Therefore he is not entitled for any overtime wages.

G. In Tamilnadu the requirement to pay overtime wages and the rate of overtime wages are governed by the provisions of the law relating to working conditions applicable to the particular “industrial establishment”(either a factory or mine or plantation or shop or commercial establishment) and not by the Tamilnadu (Industrial Establishment) National and Festival Holidays Act or by any other law.

H. In his post Mr.Bhaskar has not indicated the law based on which he had made the statements contained therein.

I. I have clarified the contents of my previous post in this thread in case you have any doubts/reservations regarding its contents.

With regards
1st March 2012 From India, Madras
Thank you Mr. Harikrishnan for giving an exhaustive explanation by which even a layman also can understand. I expect your active participation in this forum, so that our members will have a chance to learn more from your knowledge and experience.
Once again thanks for your valuable reply.
1st March 2012 From India, Kumbakonam
Dear Mr. V.Harikrishnan,
Thanks for your detailed explanation for my query.
Now i understood the concepts clearly. I am presently working in Jamshedpur, coming under Bihar Factories Act. If you know the National and Festival Holiday rules about this location, Please add.
Seeking for your kind explanation.
Thanks in advance.
Regards,
V.Janarthanan
Mob.No : 8294630594
1st March 2012 From India, Madras
Dear Mr.Janarthanan
In Bihar there is a law called the Bihar Industrial Establishments (National and Festival Holidays and Casual Leave) Act, 1977. This regulates the grant of national and festival holidays in that State. I do not have a copy of this Act. I am not able to locate it in the net either. A thorough reading of this Act and the Rules framed there under is necessary to form a view on the applicability of this law to the establishment in which you are working.
With regards
V.HARIKRISHNAN
1st March 2012 From India, Madras
Dear Mr. V.Harikrishnan,
Thanks for your kind posing.
I have read in the act and not getting clarified. Just checked the Neighbourhood companies about the Procedures. They are advising me to pay 3 wages (1 Normal and 2 wages based on their working hours on 26th Jan).
As my payroll is processing in chennai, Without documents, i cannot proceed further.
If you know prominent persons in your circle, please collect document and send to me. I will be greatful to you sir.
Thanks in advance,
V.Janarthanan
1st March 2012 From India, Madras
Dear Mr.Janarthanan
It is difficult to get a copy of the Bihar Act. If you can send the relevant extract through e mail (may be after scanning) probably I will be able to help you.
With regards
V.HARIKRISHNAN
2nd March 2012 From India, Madras
Dear Sir, Could you able to provide me the national & holidays rules maharashtra? as it is not available in our local market. Kindly expedite. Thanks Soumen
1st April 2013 From India, Jalgaon
Dear V.Harikrishnan Sir,
To add to this thread, there are many such companies involved in continuous working process in BPO's (i.e. essential services). Is there are process to register such companies/department with labour inspector? if so any, can you please brief.
How this National and festival holiday act shall be applicable to them and the process.
Regards
Soundar Raj M
30th April 2018 From India, Chennai
Dear Mr.V.HARIKRISHNAN,
Can the below reference be taken as reference for industries in states where there are no clear laws / rules to National / Festival Holidays?
INDUSTRIAL EMPLOYMENT (STANDING ORDERS) CENTRAL RULES, 1946
10. Festival holidays and leave.--(a) There shall be seven paid festival holidays or as laid down in an agreement or an award in force. Out of these seven days, the Republic Day, Independence Day and Mahatma Gandhi’s Birthday shall be allowed without option and the rest of the days shall be fixed by agreement or local custom. Whenever a workman has to work on any of these holidays, he shall, at his option be entitled to either thrice the wages for the day or twice the wages for the day on which he work and in addition to avail himself of a substituted holiday with wages on any other day or as laid down in an agreement or an award in force.
Thanks & Regards
Aravindan B
25th May 2019 From India, Chennai

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