I have recently joined a IT company as a HR and here my employer only provide 5 national holidays in a year.Now he wants to remove 2nd October leave also by stating that it is no more a Gazetted holiday.Although i have 6 plus years experience as a HR Professional and i am much aware about all the statutory compliance and the Labour Law.Still feel like to share this and get some insights from the experts.
Can somebody help me to understand the labour laws for IT companies.Thanks!!!
Awaiting for the response.
HR Professional

From India, Delhi
Dinesh Divekar
Business Mentor, Consultant And Trainer
Amit Aishwary Choudhary
Managing People At Work.
Srinath Sai Ram
Hr Manager
Agile Solutionist

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amit aishwary choudhary

### Labour Laws in India Applicable To IT Companies
The recent and on-going economic down surge has resulted in a large number of IT jobs being cut and hiring strictures being put in place, both of which, quite understandably, have not gone down well with the young IT professionals the country churns out every year. There is a misconception among the people that the labour laws of the country do not apply to IT Industries but this is not true. Almost all the labour laws which are applicable to any other industry are also applicable to IT Industry.
**This is true that the Factories Act, 1946, the Industrial Disputes Act, 1947 and certain State labour laws do not apply to IT Industries but apart from that, all the other labour laws are applicable to IT Industries as well.
-The state governments have been given the power that they can exempt any particular industry from the laws which are made by the Central Government regarding the labour or industrial laws under section 14 of the Indian Employment Standard Orders Act, 1946.
-The state government using this power do exempts the IT Industries from the Industrial Employment Standard Order Act, 1946.
-The IT industries do not include their employees under the definition of “workman” stated in the Indian Industries Act, 1965 in order to get exempted from the liabilities which arise after that.
-The Trade Unions Act, 1926 : Employers as well as employees strongly believe that employees of IT Company do not have the right to form a Trade Union. However, nothing is further from the truth than this. The Fundamental Right to form associations or unions is accorded to all citizens under Article 19 (1) (c) of the Constitution of India and therefore, like all citizens, even IT employees can form and/or join Trade Unions.
-Shops & Establishments Act : IT companies in a particular State are covered within the definition of ‘commercial establishments’ under the The Shops & Establishments Act of the State.(please refer the state act to knows leave applicability).
-The Payment of Gratuity Act, 1972
-The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
-The Employees’ Compensation Act, 1923
-The Employees’ State Insurance Act, 1948: Now, if an employee is covered under the ESI Act on account of his salary being under the Rs. 15,000/- cap, he is not eligible to receive benefits under The Employees Compensation Act, 1923. In a Commercial Establishment, therefore, employees who are below the Rs. 15,000/- cap shall be eligible to benefits under the ESI Act and those above, shall be covered by The Employees Compensation Act, 1923.
-The Contract Labour (Regulation & Abolition) Act, 1970 : The Contract Labour Act is applicable in case if the Commercial Establishment employs its personnel through a Service Provider for carrying out various jobs such as Security, cleaning, loading-unloading etc. The registration of an establishment under this legislation is mandatory. In case the Service Provider employs 20 or more workers, registration of the Contractor is also mandatory.
-The Payment of Bonus Act, 1965
-Equal Remuneration Act, 1976 : As per notification number S.O. 144 (E), dated 02 March1977, ‘Data processing and tabulating services’ are covered under the ambit of the Act bringing IT and ITES industries under the sweep of the Act.
-The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 : A private sector establishment before filling up any vacancy in any employment in that establishment shall notify that vacancy to such employment exchanges as may be prescribed.
-The Minimum Wages Act, 1948
-The Maternity Benefit Act, 1961
-The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
Please visit the below link:

From India, Delhi
Dinesh Divekar

Dear Sneha,
This is in addition to what Amit has written. Since you are from IT, then predominantly Shops and Establishment Act of your state is applicable to you. Under the provisions of this act, it is important to give 10 closed holidays to an industrial establishment.
Few state governments, like the state of Karnataka have passed act like National and Festival Holidays Act, 1963. For your state, Delhi Shops and Establishments Act, 1954 is applicable. To know the provisions of this act, click the following link:
More than lack of statutory awareness, your employer is showing high-handedness. Things may go his way, but on one fine day, it could land him in trouble. Therefore, let him do his business within the precincts of the law. Cost of transgression is too high and it nullifies savings made in the past years.
Dinesh Divekar

From India, Bangalore
Thank you Mr. Dinesh and Mr. Amit....its great to have feedback from the experts and now i can talk with the facts with my boss.
Still i know he wont change.
For this year somehow i have saved employees 2nd October holiday for he is determined to remove it from next year calender by keeping only 4 Holidays in a year.
And it is a "Limited" Company.That made me join this company.

From India, Delhi
Srinath Sai Ram

National Holidays
Every state government is empowered to declare national, festival and other mandatory holidays for industrial establishments under their respective Industrial Establishment Acts, e.g. Delhi has adopted The Punjab Industrial Establishment (National and Festival Holidays and Casual and Sick Leave) Act, 1965 whereby ever worker shall is entitled to the following mandatory holidays in each calendar year:
(a)Three national holidays of one whole day each on the 26th January, 15th August and 2nd October; and
(b) four other festival holidays.
On the similar note, state governments under their respective shops and establishment acts may declare mandatory national and other holidays for non-factory workers e.g., Delhi Shops & Establishment Act, 1954 mandates three national holidays of one whole day each on the 26th January, 15th August and 2nd October.

From India, New Delhi

Hi Sneha,
Maybe your management is least bothered on employee rights. However being in HR, it is your responsibility to recommend right things to management and also make the work place peaceful and enjoyable for both. Labour Laws is a broad spectrum and not all are applicable to IT companies. Upfront, your firm has to follow Shops Act and there are rules within as far as Holidays are concerned.
Recommend to visit this statutory wiki for curated information.
Also in my opinion, in a knowledge company, forcing employee to sit and work on a holiday or more hours is not going make considerable improvement in work progress or quality. So eventually the management will become the looser if start acting owner - worker drama of 80's.

From India, Bangalore

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