HR vs Accounts: Should Contractor Workmen Get Double Pay on National Holidays?

Dear Senior Friends,

It's an Izat ke saval; HR Vs Accounts. We are having some contractor workmen in our factory. Usually, if any regular workmen work on a National Holiday, we pay double OT. Similarly, the contractor's workmen are also eligible for that OT payment according to our HR department. However, the Accounts personnel say there is 'NO' rule at all. Please provide your comments immediately to help solve this problem.

Regards,
PBS KUMAR

Dear PBS Kumar,

Payment of overtime is to be made if the work is undertaken on a national or other holiday by any worker who is eligible and entitled to have such a holiday. In your case, we need to examine whether the contractor's workers are entitled to have a national holiday under the Industrial Establishment (National & Festival Holidays and Casual & Sick Leaves) Act of your State. If the answer is 'No,' then the contractor is not required to make any overtime payment. Please examine the provisions regarding applicability, the definition of worker and employer in your State Act for the finalization of the matter at hand. Also, inquire about why the accounts department is refusing to make overtime payments to the contractor's workers on behalf of the contractor.

With Regards,
R.N.Khola

Dear Khola ji,

Our industry is "FACTORY" according to the Factories Act. Please refer to the definition of 'Worker'.

In India, the Contract Labour Act applies along with other labor acts such as the Factories Act, Bonus Act, PF, ESI, Gratuity, Minimum Wages, Payment of Wages, etc.

Regards,
PBS KUMAR

Dear Kumar,

We all know that you are one of our respectable and intelligent CiteHR members who have provided us with a lot of important material on labor and other laws for our benefit. If your accounts department is not of the same view and they are not convinced by your version, then take up the matter with the higher management for a final decision on this issue. For the applicability of the Factories Act, 1948, we do consider the on-roll strength of the contractor, but he is not supposed to take the factory license. The factory license is required to be taken by the occupier of the unit. The responsibilities of the employer and the contractor are to be carefully considered. In India, we all know that there are different definitions for various terms such as wage/salary, worker, employee, etc. When extending any benefits, we should adhere to that particular Act for applicability and other definitions to determine who is entitled to these benefits under that Act. Therefore, I suggest going through your State NFH Act.

With Regards,

R.N. Khola

Dear Khola ji,

Our industry is a "FACTORY" according to the Factories Act; please see the 'Worker' definition. Throughout India, the Contract Labour Act is related to other labor acts such as the Factories Act, Bonus Act, PF, ESI, Gratuity, Minimum wages, payment of wages, etc.

Regards,

PBS Kumar