Dinesh Divekar
Business Mentor, Consultant And Trainer
Adoni Suguresh
Sr.executive (per & Adm)
Working As Lead Hr At G4s
+1 Other

Hello all!!!! greetings of the day!!! Recently i have joined some company as an HR Executive and i am handling all the HR Department solely. The policies of leaves in this company is very messed up because of Labour Union. recently on 2nd October(national holiday) we have policy of triple pay on national holiday. but management decided to close some departments of Hotel for which they have no work on that day and told them to avail their national holiday. but because of some old staff they have created an issue that this has not happened since last 25 years and they came to office. now this matter has gone to legal. But some staff wants to avail their CL( Casual Leave) for 2nd October so I wanted to ask that is it allowed to avail CL on national holiday?
From India, Mumbai
Dear Raj,

There appears to be confusion on the fundamental concepts of like type of leave and closed holiday. If you are from hotel industry then you must have been covered under Shops and Establishment Act. Please go through the Act that is applicable to your state and check whether definitions of these concepts are given in the act itself. If not then please educate yourself as well as others on these concepts.

In the instance that you have described, the issue is about acceptance to the change. All along management had been calling the staffs for work on National Holidays. Now to maintain continuity, they called personnel from Ops departments for work and not other office staffs. The change in decision in what was happening all along has incensed the workers. Hence the dispute (resulting out of inertia).

Do you have industrial standing approved by labour department? If not then first get these done immediately. Any decision taken under the provisions of the standing orders is unchallengeable in a court of law. Yes, theoretically the decision can be challenged but then courts do not intervene if the decision complies with the standing orders. In fact if your company has labour union and that too active one, then your management should have fabricated standing orders long ago.

On national holiday, there is no question of availing of casual leave. If labour asks for casual leave and if it granted also then labour is loser of triple payment plus loss of day's leave. This in itself could create a problem.

You have one more challenge of how to loosen the stranglehold of labour union. Try to come up with innovative ways to make sure that the union exists but it should be weak one. In your hotel, the union appears to be militant one. Talk to management and find out whether they are ready to launch Voluntary Retirement Scheme (VRS) for the old-time workers who are also union members. It is these few persons who could be holding the entire business to the ransom. The new generation employees are not so keen to be led by labour union. In fact, at lot of places, labour unions have become dormant and how come it is still active in your company that itself is little surprising.


Dinesh V Divekar

From India, Bangalore
Thanks for your opinion Mr. Dinesh... I have very less experience in HR previously i was working with a textile company where there was no such a problem. This Labour Union is on nervous of the management and since this hotel is 27 years old and currently we have occurring losses the management is not intrested to continue this business as the contract is getting expired in 2017. and management is just ignoring this and just continuing the way it is being for so long... The previous HR was also ignoring the issues coz he was not having such knowledge of HR.Since i have joined i m trying to get back all thing in line the union is arising objection and then they give letters from union to company. and in this process the lot of time is being wasted e.g. meeting hotels legal advisor, drafting letter for the reply of letter, then dates in labour court. Its just messed up all here. There is no any proper record have been kept of this agreements. i am learning day by day since its just my second month here but every week some new problem arise from this Labour Union.
From India, Mumbai
Dear Raj,
It will not be treated like CL. Infact it'll be treated as comp-off. You can give comp off.
the second option for this matter is that you can contact to your Local Assistant labour Commissioner to take exemption for the same. Ask him for the procedure to take the same.

From India, Mumbai
Dear Mr. Dinesh,
As per ground rules can you please confirm the CL & PL limit of organisation, coming under factories act & Shop establishment act.
Earliest reply will be highly appreciated ....

From India, Bhubaneswar
Dear Dilip,
Provisions of employee leave vary in Shops and Establishment Act or Factories Act from state to state. The variation is not major but there is variation. Therefore, please follow the act applicable to your state.
Dinesh Divekar

From India, Bangalore
Dear Mr. Dinesh, Can you please refer any link to know about Gujarat state’s detail
From India, Bhubaneswar
Dear Mr..Pawar,
Your workers demand is correct. If you engage a worker on National Holiday or Festival Holiday as per the act you should pay the double rate of wages and one day as Compensatory off. This is the law specified in the Act. You cannot escape from this procedure. If you want a service from the employee on the National Holiday or festival holiday, you are bound to pay the wages or else do not call them for work.
Since you are telling that your workers having the Union. If so there must be a agreement with the Union by the Management. If not please make the agreement by putting all service conditions as per the laws. All the agreements should be as per the provisions of Industrial Disputes Act.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant

From India, Bidar
Dear Mr. Adoni Suguresh
Thanks for your opinion. The agreement is there with the Labour Union, but the same is not renewed from past one year due to demand disputes, the union is approaching the labour court they have filed a complaint in the labour court. and as per the law we are paying double on the national holidays to the staff.
Raj Pawar

From India, Mumbai
Dear Friend, No! its not valid. You can give them Comp off and closs the matter. Rgds
From India, Mumbai
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