Office Open on 15th Aug: What Steps Should We Take and Are Extra Leave Payments Needed?

Hello seniors,

Our office will remain open on 15th Aug 09. What are the necessary steps we need to take? Do we need to pay 2 cr. leave to staff?

Regards,
Madhura

Dear Madhura,

We hope that your office is running smoothly in any of the states of India. Offices are covered under the Shops & Commercial Establishment Act, and if your state has enacted this Act, please review the provisions relating to the grant of holidays. You will find the answer to your query.

Regards,

R.N.Khola (Labour Law & Legal Consultants)
09810405361

Hi,

As per the Shops and Establishments Act, it should be a holiday even if you pay double the salary. We can't overcome this kind of provision...

What is the need to open the office on that day?

Please understand, as Indians, we say, "this is not there for me, that is not for me." A nation's Independence Day is celebrated. As an Indian, you should not even ask this question in the first place. Think about our fundamental duties to the nation as a citizen, at least one day in a year.

Will you dare to do the same if you are in any European country or the US?

Please think.

Hello,

I would like to know if corporate offices can be granted leave on the 15th of August. In this office, there are certain old employees (who have been with the company for more than 15 years) who brainwash the management by saying, "Leave is not necessary," and they come here and slog.

Thank you.

Hi,

In India, National holidays are 3 (15th August, 26th January, and 2nd Oct). It is observed across the country, and everyone must observe these holidays. Service industries or critical operations that cannot be stopped to enjoy holidays must provide compensatory holidays or overtime pay to employees on duty on these days, as per the individual company policy.

Read the act to understand the importance of national holidays; the fundamental reason being it is a national holiday. No employer or employee has the right to argue if it can be a working day or not.

I am sad it falls on a Saturday, missing a long weekend. :(

Thanks,
Geeta

Dear Madhura,

If your employees work on a national or festival holiday, you need to fill out Form 4E and send it to the HR office at least one week in advance. In this form, you should include the employee's name, department, and shift.

Employees who work on national and festival holidays are entitled to double wages or a leave with pay, as per the management's decision. This practice is common in the service industry and, in some urgent cases, is also followed in the manufacturing industry.

Regards,
Sudharshanan

One can't open any office or establishment on the specified national holidays under any circumstances, and no one can force any employee to come on that day. It's an irony that many people are lured by the extra money or compensatory holidays and give scope to employers for forcing other employees also to come on that particular day.

15th August and 26th January are national holidays, and you don't need to take any leave.

Hello Madhura,

If your company needs to function on the 15th of August, check whether your company has the Shop & Establishment Act filed. If so, you have to submit "Form 5A" to the Labor Department at least a week in advance. The main thing is that however the salary has been paid (cheque or bank transfer, etc.), the pay for the employees who worked on that particular day should be given on the same day.

I hope the above statements have clarified things for you. This issue is mainly with the Labor Department, which faces challenges when working on holidays. Please check with the Labor Department for further clarifications or message me specifically. I will try to assist you.

Take care and all the best.

Dear Anoop,

Even if extra money is provided, we can say that it is really bad. But look at what employers are saying now - It's a recession, if you take a leave, think about your employment... bad, right?

Sir,

Can anybody help me with sending a draft copy of a notice to an absconding employee who has company laptops, etc. in their possession?

Thank you.

Ask them to brainwash the Indian government; they can't end up paying fines!

As far as I know, you have to pay double the daily wage or keep your office/establishment closed for the day or pay the fine.

Dear Madura,

As per the respective state's Shops and Establishment Act, there are some mandatory holidays to be declared in all firms, such as Republic Day, Independence Day, Labour Day, Gandhi Jayanthi, and Kannada Rajyotsava (applicable in Karnataka).

For instance, if the shops/restaurants are open on those days, as per the law, the employees who worked that day will be given compensatory time off or double wages.

If your firm is operating on Independence Day, you can inform them about the above options.

Regards,

The best way to celebrate independence is not merely to enjoy a holiday as an Indian but to reflect on our role as Indian citizens and contemplate what we can do for our country on this significant day.

Dear Madhura,

15th August is a national holiday in India, so on the attendance register, no one should sign on that day. It would be better if we observe that day and increase working hours by one hour in the next week.

Goutam Tapedar

Dear Madura,

The law is very clear that it has to be a closed holiday. However, in case of an emergency, only those employees who are essentially required should be called to work. In such a case, you need to inform the labor office. Furthermore, you need to give them a compensatory day off and also pay additional compensation as per the rules applicable in your state.

In my personal opinion, Independence Day is the result of efforts that granted us the freedom we often take for granted. Working on this day signifies disrespect to those who fought for it and those who defended our nation against enemies post-independence. Would any American company operate on the 4th of July? Never! So, why can't we also show the same respect for our Independence Day?

Best regards,
Ajay Chaudhari

Dear all,

Sentiments aside, there are certain essential services like security, certain operations, maintenance, etc., which have to work 24x7, and any national holiday is not an exception. From your query, it is not clear whether you are a factory or a commercial establishment. In case you are a factory, then follow the Standing Orders. In case of a commercial establishment, find out from the applicable Shop and Establishment Act, as there are variances from state to state on the compensation to be provided.

Regards,
KK Nair

Hi all,

Nice discussion is going on for this topic. It's really nice to see people looking to get time off from their office. Well, it's up to the organization's policy. And I do believe that nowadays management can create a better atmosphere in the office rather than the time you would spend outside the organization.

The fact is, should we have to use all these words like we are Indians? Do we have any doubts about proving that we are not Indian? It should be spoken by others in a positive manner that they are Indian.

Come on, if you have joined an organization, try to think about expanding it instead of just looking for ways to relax. You will have your entire life to relax; no one will ask you what or why until you have proved your identity. So, think positively about what is more important to you. Will it be going out with friends for a hangout or completing the pending project?

Please don't mind anything as it varies from person to person.

Decide and take your steps.

Thanks,

Ashwani Rohilla

Hi,

First, you need to get approval or written permission from the authorities under which you are covered.

Secondly, you need to inform the nearest police station in writing that your office will be open on the 15th.

Thirdly, you need to give overtime to employees for the day.

Fourth, you need to give a holiday in lieu of the 15th as well.

Fifth, if any employee requires leave for the day, and it is very necessary, you cannot stop them.

Regards,
Chhavineet Trehan
09811028569

Hi Friend,

You should not work on a National Holiday as per the act. Except for emergency operations like security, maintenance, and other critical operations, no one should work on National Holidays. Declaring a holiday on National Holidays such as May Day, Republic Day, Independence Day, and Gandhi Jayanthi is mandatory.

Regards,
Arasu

Dear Madhura,

After going through the views and opinions of my seniors, it may be concluded that 15th August should be observed as a holiday. Please convince your management; if they do not agree, then follow the procedures below:

1. Intimate the ROC/Factory inspector, stating that the company will remain open on 15th August 09.
2. Declare 17th August as a holiday.
3. Employees are authorized to receive double salary for working on 15th August 09.

Regards,

Pranab Kumar
[Login to view]

Dear All,

As per our company's holiday list, we do not have a holiday on 2nd October. I believe this is a national holiday. We are covered under the Factories Act. Does the nature of the place have any effect on the laws? (e.g., if the factory area is covered under the corporation or gram panchayat).

Hi,

Regarding your query, is this establishment covered under the Shops and Establishments Act or the Factories Act? Even if it is a factory operating 24x7, you can retain essential staff by paying double the wages and declaring a paid holiday for general shift employees.

If it is covered under the Shops and Establishments Act, you have to declare a paid holiday under that act. Otherwise, labor department officials may file a case if work is conducted on that day.

Please observe carefully.

Thanks & Regards,
Vadlamani SR

Dear Madhura,

Generally, any company or establishment should not remain open on this great day. However, understanding the requirement of certain sectors wherein we just can't afford to close the establishment on any day and which require 24-hour service, the company generally pays twice the salary amount and grants one casual leave on any other day. However, this can only be done by taking special permission from the labor authority of India.

Thank you.

Hello,

As per the act, you cannot run your factory/shop on gazetted holidays as per the list. 15th Aug. is our national holiday. It is a "declared" national holiday from the central holiday. If any factory/shop/office is open, the labour department will file a case.

Thanks & regards,
Suvarna

Hi,

I agree with Geeta; however, please let me know if your company is a BPO or KPO running 24/7 operations. If it is, then the office can be kept open with minimal staff as they are catering to the needs of foreign customers. Normally, support functions do not work in a 24/7 operation; however, essential operations can continue.

Regards,
DM

Being part of a BPO as well as part of Operations, I have worked on 15th August and even on election days.

I do not see any reason to open the office on 15th August when we have to declare a holiday in lieu of it on another day. But yes, if the business exigency is there, then we should work on such public holidays after having obtained prior approval from the authorities. This is just common sense. I would rather not like this discussion to be dragged further just for the heck of it.

Prashant

Good day,

Actually, everything that is written is correct; it's a holiday, no doubt. But the thing is, as Indians, we are not celebrating in the office. Just like school days, the organization should celebrate so that all the employees will come and participate. (Not a working day, but everyone's presence is compulsory). One should feel patriotic by oneself. Unfortunately, we Indians are discussing leave or holiday. In India, every MNC should consider and celebrate.

I think it will take much time to implement in India by Indians.

Regards,
Lakshmi

Hi,

The rules in different states may vary, but I would suggest the following: 1 holiday salary and 1 overtime salary (equivalent to 2 normal salaries). This means that 3 salaries should be paid for working on a National Holiday, instead of 2 for other holidays. Another option for non-National holidays is 1 salary and a compensatory leave within the next 3 working days.

Sincerely,
Prithvi Pal

Dear Madhura,

As per the National & Festival Holidays Act, August 15th every year is observed as a national holiday. Additionally, under the Shop & Establishment Act, every organization needs to declare the holiday. Kindly note, any organization that violates the act can be punished accordingly. Apart from the statutory obligation, as Indians, we need to respect the motherland.

Dear all,

Is the question ruthless? Be proud to be an Indian. Then these questions will not arise in your mind. You can work even on festival holidays if the employees accept but not on national holidays even though the employee accepts.

Thanks,
Mani

Hi All,

We need to help Madhura, not by words, but by giving her the relevant arsenal when she fights with her management. And trust me - all we are doing here is chattering... nobody, for that matter, me included, has mentioned any specific link/page/attachment that talks about:

1. The necessity of national holidays.

2. In case there is or isn't a necessity for a holiday, then what measures an organization should take in either scenario.

3. What does the violation of national holidays attract in terms of punishment?

While we answer the questions above or bring up new ones for answers, let's not talk gibberish and base our point by providing basic facts verifiable by anyone.

Let's help Madhura get this straight.

Expecting your help, folks, in addition to professionalism.

Madhura - I hope you will receive the answers, but if you don't find them, talk to your lawyer; he should be able to help you out. Please do not - I repeat, do not - waste time in forums where relevancy with facts is given a back seat.

Regards,

Trinity - Morpheus

You can open the office but have to follow the Shops and Establishment Act of 1954. Firstly, give the employees double duty OT and also declare a day off in lieu of 15th Aug. Submit an application to the DDF office for approval.

We can operate on 15th Aug.

Thanks,
Arun

You can run on 15th Aug, '09. The provision already exists to run the office on a national holiday; just go through the Shops & Est. Act 1954 in depth. You will find your answer.

Thanks,
niscy

Yes, there are three national holidays: 26th Jan, 15th Aug, and 2nd October. Employees who are required to attend duty are paid extra wages and a compensatory off.

This practice exists in all PSUs like SAIL, NTPC, Indian Airlines, ONGC, GAIL, etc. Continuous operations (whether in the private or public sector) are run 24x7 and manned accordingly.

Have you ever seen a Police Station, Traffic Police, Electricity Distribution, Water Supply, Hospitals, Railways, Bus services, Airlines, etc., come to a dead stop on these national holidays?

Do you think they are not patriotic (some even being in Public Sector or Government offices)?

Even in schools and colleges, students come for national flag hoisting, right?

Equating patriotism with coming to work or attending duty - is it correct?

Finding answers to these will clarify the issues. Many of the 'foolish' responses seem to have come from laymen and not HR professionals and have been made without thinking, introspection, or observation of the surrounding environment and real issues. Instead of being blinded by false emotions, one should be objective and look around to update oneself.

Regards.

Dear friend,

If required to work on National Holidays, the law states that employees should receive double the normal pay (double OT) for the day and a day off in lieu.

Before deciding to keep offices open as usual, let's reflect on our nation and the sacrifices our forefathers made, which allow us to enjoy the freedoms we have today.

Suresh

On 15 August 1947, India attained freedom from British rule. Every year, August 15 is celebrated as Independence Day in India.

Don't disturb your employees' freedom to celebrate this great Independence Day.

Dear Friend,

As per the law, you cannot work on national holidays. Only those factories that run continuously for 24 hours round the year can work on these national holidays. However, if you have no other option but to open on that day, you must obtain special permission from the labor office. Additionally, you must provide one day off within 3 days and pay double salary for that day. Opening without the permission of the labor office is a major violation of the law. It is advisable to take that day off.

Thanks,
Shiv

Hi,

Please check the leave policy of your company. If the 15th of August is already declared as a holiday, then you can't open your office on that day. As mentioned by others, the 15th of August is a national holiday, so keeping the office open on that day might be illegal.

Hi, this is Pankaj Sharma. I am currently employed at Mawana Sugars Limited (A Unit - Nanglamal Sugar Complex, Nanglamal). I am earning 14,000 Rs., but I am not satisfied with my job. I am pursuing an MBA in HR from Symbiosis Pune. I aspire to build my career in the HR department. I aim to commence my career in HR so that upon completing my MBA, I can gain relevant experience. I also possess knowledge of SAP ESS and am proficient in ESS. I seek guidance in transitioning to the HR department to pave my path and reach my goals. Please help.

August 15th, Oct 2nd... and many other days are also days when schools and colleges are on leave. Won't the employee want to be at home with family - or just take some time for personal pleasure?

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As an expert HR professional, it's important to consider employees' need for time off during these holidays. Offering flexibility and understanding can contribute to a positive work environment and employee satisfaction.

Dear Ash,

The point at issue is not that someone should not take a holiday on 15th Aug. It's about what to do in case one has to attend duties on 15th Aug. and wrongly equating patriotism with taking leave.

Whether it's a National holiday or a popular festival like Deepawali or Holi; some people who are in continuous operation industries (like iron and steel making, where if a blast furnace is stopped once, it will take at least 3 months to restart it again!); in police services, or other public utility services which come under Essential Services; in hospital and medical services; in BPOs, etc. where it's 24x7 working, etc. (the list is illustrative, and not exhaustive) are required to work.

When the whole of India is cheering and celebrating, these people PROUDLY go on with their work because the "show must go on!" And if they don't work on that day, the whole India will come to a halt.

Imagine getting stuck on a railway track in a remote area, cities having no power supply and electricity on 15th Aug. No buses or public transport. No policeman on duty.

These people SACRIFICE their holiday, their joy of celebrating with family, for the sake of their duties so that the rest of India can move along.

Is it justified to call them Unpatriotic?

Is not some understanding of issues and sensitivity be expected from people who call themselves HR professionals?

Regards.

Hi Madhura,

You can only operate the office on national holidays if you have a license for 365 days from the labor office. Please contact the labor office for further details.

Thanks,
Vinod

Dear Madhura,

If there is such a great emergency that you cannot close your office on the 15th, then a better way out is to give the employees a compensatory leave on any other day.

Regards,
Payal