How Should HR Handle Employee Morale When No Holidays Are Given During Festivals?

Dear All,

I am an HR Manager at the Tata dealership. In our line of work, festivals are a major business time. However, my management has decided not to provide any holidays for the entire month of October, not even for Diwali or Dussehra.

All the employees are feeling demotivated due to this decision.

As an HR manager, please suggest how I should react. :(

Hi Rachna,

For your kind of business model, festival days are revenue-generating. If employees were to have days off on these occasions, your business would suffer. As an HR Manager, you should take this positively and try to convince your employees. You can offer them compensatory time off for the same.

If it's so important to continue with the production work, you may call for a 3-hour party on the Diwali night not only for the employees but also for their families. Invite their families, make arrangements for Laxmi Puja, crackers, let the employees enjoy on this eve, and then after the festival give them leave in shifts. I know this may not fully compensate for the demotivation flowing in their veins, but at least you may try by participating along with them.

Hi,

It seems that your management has decided not to give a holiday during Diwali. You must adhere to this decision. As you mentioned, this period is crucial for the business, so as an HR Manager, you should approach this situation positively and encourage your employees accordingly. Don't forget to offer them sweets on Diwali when they are in the office on that day. Also, inform them that this working day will be adjusted later.

Regards,
Menaka

Hi Erchana,

I strongly agree with Menaka Rao, Dishasri, and Harinder. You have to take it positively and motivate your team and your colleagues as well. Here, as the Manager of HR, your skills come out in terms of motivation and encouragement.

Cheers,
Satya Penubothu
Deputy General Manager - Human Resources

Thank you all. I will try my level best to convince the employees and will also organize some small games for Diwali celebrations.

Thanks a lot.

Regards,
Archana

Dear Erchana,

I agree with the posts posted so far. Take it positively and convince the employees. Give them the example of Indian soldiers who are patrolling the borders even during festival seasons.

Thanks & Happy Diwali

Dear all you great people on this board,

Could any of you explain the following: Under what provisions of which law can an employer ask an employee to work on National Holidays and Festival Holidays? What compensation should the employer pay to employees for engagement on National Holidays and Festival Holidays?

Your response will be highly appreciated.

Regards, Rashid.

Hi all,

Rasheed's question is correct. Normally, one of our main festivals is Diwali. If there are no other alternatives, the HR Manager should discuss with management the option of offering compensation for that day. Before the working day of Diwali, management should communicate the benefits of working during the festival. This is important to comply with labor laws if compensation is not provided. We need to focus on a positive direction and motivate employees. I agree that it is the HR Manager's duty to support the employees.

With Regards,
Siva

In one of my earlier companies, we had a miniature mela held on the premises. There were small 1-2 people stalls for eatables, mehendi, dance floor, etc. The senior management must visit and celebrate the festival in-house. Also, ensure attendance is 100% on such days. Don't give leaves to anyone.

In my present company, we also have to work on every festival. It is also a peak time for our company. So what we do is we usually work half days on these festival days. Until 3 to 4 pm, we work regularly, then we celebrate the function of the festival, which takes 2 more hours, and then we leave the office. This makes a full working day, and employees also enjoy the day. This is the way we make people happy and work on festival days in my present company.

Hi,

As you are an HR manager, you should try to convince them and create a festive and friendly environment in the company. You can give them a party on Diwali night and also invite their family members if they are local. Additionally, you should provide them with some compensation.

Thanks

I also agree with you all. As management has made an announcement not to give holidays, we should obey their order. There must be something in their mind.

But as an HR professional, you should seek permission from management to celebrate the event with their families in the company. This will motivate the employees and their families.

Regards, Abhijeet Sawant (Manager P&HR)

Dear,

It is very clear that your business directly deals with customers and the festive seasons are the period which will fetch approximately 50% of revenue of the whole year. In such a case, closing the showroom is not practicable. This is very clear that after Diwali, let the showroom close for 28th, 29th, and 30th October for three days. Alternatively, let one group of employees go on holiday for three days while another group takes care of business. Usually, after the festive season, the business will not have that much pressure.

Also, do not forget to insist on your management to meet the families of your staff in a gathering. The major compensation is monetary benefits for working on festive holidays besides overtime and bonus. If you are able to convince your management, you are the best HR Manager.

All the best,
Happy Diwali

SMS - Dubai

Hi Menaka,

Menaka is right. Also, it is a good example of Indian soldiers who are patrolling the borders during the festival seasons.

Regards,
With Deepavali best wishes,
Sasidharan

After reading all comments to this post, I invited the attention of one senior HR member. He advised me as follows:

Management, if asked, employee to attend work on declared holidays, is liable to pay the employee the following compensation:

1. Remuneration for the actual day worked.
2. One day extra remuneration for the hardship of working on festivals or national holidays.
3. Compensating one day's wages for his holiday entitlement.

If management avoids payment for compensating one day's wages for the holiday employee worked and is entitled to, the employer has to then allow the employee to avail compensatory holiday with pay in lieu of such holiday.

This is called 1-day wages + 2-day extra wages.

This is neither charity nor a creative idea but a law for working on holidays.

Regards,
Rashid

Dear Rashid,

I am working in Shamshabad Airport - Hyderabad as HR Manager for a ground handling company. Our emp's work on shift, in our holiday calendar we have 3 National holidays and 12 public holidays.

Staff who worked on National holidays will be entitled for OT allowance + compensating with comp off.
Staff who worked on public holidays will be compensating with comp off.

Dear Archana,
For your kind of business model festival days are revenue generative.
During recruitment process itself you should inform the staff about the business mode and holiday calendar of your company.
Issue a circular to the staff mentioning that “On Dewali its working day” and also mention them about availing comp off process and there support required for operations.
On Dewali a special care for staff.

Thanks,
N.L.N Swamy.

Dear Archana,

As per the Shop & Establishment Act and the Factory Act of 1948, it is mandatory to provide a National Holiday to employees. However, the employer has the option to compensate for the Deepawali Festival on another day. If compensation is not provided, as the HR Manager of the firm, you should suggest this to the management.

Deepak Raj
New Delhi
Email: deepakraj70@gmail.com

Hello Archana,

There are four compulsory holidays - 26th January, 15th August, 1st May (Labour Day), 2nd October. All other holidays are given as per the company's wish and considering the employees' preferences (caste, religion) so that everybody will be happy.

Also, let us know what the practice was in earlier years. Was Diwali a holiday given in earlier years, and is this year an exception? If so, then convince the employees and provide them with a day off on some other day.

Regards,
Harshad

Dear All,

Holidays

1. Company-wide holidays shall be governed by the holiday list that is published by HR at the beginning of each year.

2. The company has the right to decide on conducting official duty on any of the off days/holidays in lieu of any unscheduled workday due to any business/administrative exigencies.

3. Where an employee is asked to work on a weekly off day or holiday by his/her Business Unit Leader, he/she shall be entitled to compensatory off.

Working on National Holidays

1. Where any employee works on the mandatory holidays viz., Jan 26, Aug 15, Oct 2, Nov 1; the employee shall be eligible for double compensatory off as follows:
- 3 to 6 hrs: 1 day
- >6 hrs: 2 days

Inform employees that they can take comp off. All employees will not celebrate Hindu festivals; those who are not Hindus will be ready to work if the management is giving them Comp off.

Regards,
Bhanupriya
HR

Hi Rashid,

With the current scenario of many call centers and BPOs in India, it becomes mandatory for many companies to work during our festivals (as their parent company in the US does not have a holiday). Employees who join such firms are well aware of such conditions. They are given time off during other periods. So, it sort of becomes a leave on the day of the festival, and people who do not want to take leave work on national holidays.

Declaring holidays is a prerogative of the management. We go shopping on the days we have off at work; what about the people who are working in places where we shop? They are working during the days we have off too. It is just like that. This company is working on Diwali considering their sales and business. If the business is good, the employee profits too.

Archana, as an HR manager, think along those lines. How you present it to the employees can either motivate or demotivate them. Now, how you present it is up to you. All the best!

Dear Ms. Archana,

As per the discussion, all our seniors suggested the right options. We should not oppose the management decision, so the only option we have is to encourage the employees in another way. For example, by distributing some Diwali gifts and trying to arrange a special allowance for that day. This way, they will forget the work they have done on the festival day within a week or two, but the gift will last for a longer period.

Regards,

Raghunath Deepala

Dear Friends,

I appreciate the concern of Erchana. It should be one of the qualities of a good HR Manager.

Harinder mentions that if employees enjoy holidays, the business will take a hit.

Dishasri's view is fair.

Menaka and Penubothu have seen a lot in life.

If the shop is closed on Sundays, the business will be impacted, even if only to a small extent. Are they agreeable to work on those days for the sake of the company they work for? If so, they deserve appreciation. However, who will take care of their families? When will they find time to take their family members - their beautiful wives, lovely kids - to the temple or movies? Even if they find time, their kids may not be able to accompany them due to homework and tests on other days.

The profit-earning motive of any company will never be fully satisfied, even with working 24/7. Companies have to operate in such a manner. It is their duty. Even when employees are at the office on holidays or during Diwali, their families should be well taken care of, provided with all necessary facilities.

But is it the same for the employees? Should it be this way?

I don't think so. If any employee swears to be like that, I urge them to reconsider their attitude. Don't sacrifice your family life or freedom just for the sake of earning a good name with your bosses.

Be courageous. Work hard and sincerely. Don't be a slave.

After all, you are a worker/employee.

Even though I am part of management, based on my 25 years of experience in various places, I am sharing this advice with the younger generation.

Best Regards,

C. Soundararajan

This topic started for a car dealer's showroom. No need of opening a car showroom on National holidays because the public will not consider it an auspicious day.

On the other hand, during Diwali, buyers will buy on Diwali day also. It is quite natural in India traditionally. Hence, working on that day and compensating the same with subsequent days with monetary benefit shall not disturb anyone. Shouting to shut doors on festival days is a property of red flag holders. Now, this is the e-global age. We have to be flexible.

Also, employers should honor their employees and reward them accordingly.

SMS - Dubai

Dear All,

Thank you for your suggestions. However, the issue lies in our management not being ready to provide any compensation for time off and overtime. If anyone chooses to take a day off, 1.5 days' salary will be deducted.

Some employees are questioning the benefit of taking a holiday on the day after Diwali if they are already free on the festival day itself. Celebrating Diwali a day or two later is not feasible for us.

Archana

Dear All,

Thank you for your suggestions. However, the issue is that our management is not ready to give any compensatory time off or overtime pay. If anybody takes a day off, 1.5 days' salary will be deducted.

Some employees are questioning the benefit of taking another day off if we are not free on Diwali. Celebrating Diwali after two days or later is not feasible.

Archana

Hi everybody!

I am working in the HR Department in one of the Diamond Industry. My question is, during festivals/holidays, some employees take leave with or without prior permission before or after the holidays. This leads to a huge production loss for the company. What is the solution to overcome this?

Sanat

I think Rashid is a little confused. Can you show me a law that orders holidays on festival days? The electricity does not get cut off on a festival. There are many people on duty to ensure that. The trains don't stop, and there are drivers and guards who are on duty. The cinema theatre is not closed, and there are operators and ushers on duty. Hospitals are not closed. Doctors and nurses are in the operation theatre. There are thousands of soldiers guarding the border on the festival days. We had no Sunday, no holiday when we manned the borders. Be crystal clear: if there is work, the holiday and festival take second place. The Indore police deserve to be emulated. They work hard on the festival day, and after four or five days, they have a POLICE DEEPAVALI and enjoy a day off. Even the thieves and criminals keep the day off so that the police are not disturbed! So, my friend, work a lot, earn a lot, and celebrate Deepavali after a few days and burst a lot. Blessings.

Dr. Brigadier V Ramanan

Dear All,

I am an HR Manager at the Tata dealership. In our line, festivals are the major business time. But my management has decided not to give any holiday for the whole month of October, not even on Diwali or Dussehra. All the employees are demotivated due to this circular.

Please suggest to me, as an HR manager, how I should react.

Hi Rachna!

It is a fact that peak hours are crucial for the marketing business, so the company is not able to provide holidays during these festivals. However, if you understand that business is our priority, I am sure you will not be demotivated. Remember, you are generating revenue for the company and earning incentives as well.

Good luck! 😔

You should motivate the employees and tell them the real cause of no holiday. Try to motivate them by saying that now the management is in need of them in the future. If they need it, the management is also going to help them.

Also, try to make this Diwali a memorable one for all of them. Celebrate it with the employees so that they will enjoy coming on this day every year.

Please let me know if you like this idea.

Thanks

Hi Archana,

The role of HR is very typical because when you deal with government agencies, you become a compliance follower/rule maker; and when you deal with employees, you become a motivator and leader.

In my opinion, the employee and organizational relationship must be strong and positive so that employees can understand and accept management decisions with a positive attitude and in the company's favor. However, if any difficulties or negative opinions arise, HR personnel must step into the role of a leader and teacher.

As some members of this site have suggested, it would be better to invite all the family members of your employees in the late evening to enjoy the celebrations after lighting "diyas" at their residence. You can arrange for Laxmi puja, sweet distribution, a DJ, singing competition, games for kids, and dinner for them. I hope they will have a great time. If possible, arrange for transportation so that employees' families can arrive at the celebration venue safely and be sent back to their residences as well.

Take care and have a nice day.

RAJ
LUCKNOW

Dear Brigadier Saheb,

During your visit to the State Labour Commissioner's Office, please inquire about the following information. I am confident that you will receive a response from them that aligns with what I have shared.

It is mandatory by law to provide the following compensation:
1. One day's wages for the work performed.
2. One day of extra pay for the hardship of working on a holiday.
3. An additional day of extra wages to allow for the right to enjoy the holiday or to take a compensatory holiday in lieu of working on that day.

I acquired this knowledge from past negotiations with the Union regarding working on holidays, which the Union initially opposed. The industrial dispute was resolved through conciliation, referencing the provisions of this law.

Unfortunately, many employers take advantage of employees' lack of knowledge about the law, as well as the inefficiencies in law enforcement that do not rigorously uphold these regulations. When dealing with organized labor and unions, questions may arise concerning the authority and legal basis for implementing such practices, especially in industries classified as "Continuous Process Industry," which often claim the concession to operate on holidays.

Regards,
Rashid

Quote from rhinoramanan:
I believe Rashid may be a bit confused. Can you provide a law that mandates holidays on festival days? Essential services like electricity, transportation, healthcare, and security require staff to work during festivals. For instance, soldiers guard the borders, and police officers maintain security, even on festive days. The Indore police serve as an example by working diligently on festive days and celebrating later with a day off. Criminal activities even tend to decrease on such days to avoid disrupting police work. Therefore, my friend, work hard, earn well, celebrate the festival after a few days, and enjoy to the fullest.

Blessings,
Dr. Brigadier V. Ramanan

Dear Brigadier Saheb,

During your visit to the State Labour Commissioner's Office, please inquire about the following:

I am confident that you will receive clarification from them, affirming the information I have provided.

It is imperative, as per the law, to compensate as follows:
1. One day's wages for the work performed.
2. One day of extra pay for enduring the hardship of working on a holiday.
3. An additional one day of extra wage to ensure the right to enjoy the holiday or receive compensatory leave in lieu of the holiday.

I acquired this knowledge through past negotiations with the Union regarding working on holidays, which had previously been contested by the Union. The industrial dispute was resolved through conciliation, referencing the provisions of this law.

Many employers exploit the lack of awareness of the law and the vulnerabilities of employees, as well as the inadequacies in the enforcement machinery, which fails to thoroughly investigate the implementation of these regulations.

However, when dealing with organized labor and unions, they are likely to question your authority and the legal basis for enforcing such practices, especially in the context of the "Continuous Process Industry" status, often citing this as a justification to work on holidays.

Regards,

Rashid

Dear All,

There is a provision under Section 52 of the Factory Act, 1948. Accordingly, a worker may be required or allowed to work on a holiday and to avail of a substituted holiday in lieu thereof by complying with the provisions of this section. According to this provision, a worker shall have a substituted holiday on any of the three days immediately before or after the said day, and no substitution will result in a worker working for more than ten days consecutively without a holiday for the whole day. In addition to the above, the manager of the factory, before the holiday or substituted holiday, whichever is earlier, is required to deliver a notice at the office of the Inspector of Factories of his intention to require a worker to work on the said day and the day which is to be substituted. The manager must also display a notice to this effect in the factory.

Deepak Raj Manager-HR V.Automat & Instruments Pvt. Ltd. New Delhi

Dear All,

For carrying out manufacturing activities on all seven days of the week, it would require workers to also work on the day of the week which is Sunday/holiday or any other day approved in writing by the Chief Inspector of Factories. This is possible only if all the requirements of Section 52 regarding substitution of holiday are complied with. However, it may be kept in mind that the primary object of this section is to provide a holiday for workers, which has been fixed as any day of the week. But for special reasons, work can be carried out on the day by allowing a worker a substituted holiday in accordance with the provisions of this section. You may also refer to the relevant provisions of the rules in the State Factories Rules, framed under Section 64 of the Factories Act, 1948 (Rule 84 in the Delhi Factories Rules).

Deepak Raj New Delhi

Hello All,

I agree with all the comments posted by everyone. Somehow, it demotivates employees. Whatever the reason may be, management should give off at least one day on Diwali. It is a big occasion.

Thanks,
Neetu