What Should an Employee Earn for Working on a National Holiday? Seeking Clear Guidance

janarthanan .v
If an employee works on a National Holiday (e.g., 26th Jan), what is he eligible for in terms of wages below? Let's assume his daily average wage is Rs. 200/-.

Wage Options for National Holiday Work

a) Two times his Average Wages, i.e., one normal paid wage + one additional wage, totaling Rs. 400/-

b) Triple Wages of his Average Wages, i.e., One Normal paid wage + 2 wages for his actual work (similar to overtime concept), totaling Rs. 600/-

I am seeking your kind reply on the above query as I am unable to find clear directions in the books. Kindly attach any captures from legal books if available.

Regards,
Janarthanan V
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
v.harikrishnan
I believe you are referring to an industrial establishment situated in Tamil Nadu. In that case, the Tamil Nadu (Industrial Establishments) National and Festival Holidays Act would apply for the grant of the national/festival holiday and for deciding the quantum of wages payable in case a worker is required to work on a national/festival holiday. Section 5(1)(b) of this Act indicates the wages to be paid if a worker works on a national/festival holiday. If he is allowed a holiday in lieu of working on a national or festival holiday, then he is entitled to only a single wage for working on a national/festival holiday. In case he does not opt to avail a holiday for working on a national/festival holiday, then he is entitled to twice the wages, which is 1 + 1 = 2 for working on a national/festival holiday. The term "twice the wages" occurring in section 5(1)(b) means wages for the day and another wage as extra payment for working on the national/festival holiday.

With regards,
janarthanan .v
Thank you for your prompt reply. However, I referred to the Model Standing Order, which states that to be eligible for thrice wages, i.e., 1 normal paid wage and 2 wages (in OT view).

I am looking forward to your kind response.

Thanks and Regards,
V. Janarthanan
qwithq
Kindly check it properly. Are only double the wages provided, or are you inquiring whether the festival holidays fall on a Sunday?
v.harikrishnan
Could you please indicate the specific clause in the model standing orders referred to in your post?

With regards,
V. HARIKRISHNAN
boss2966
This query has already been clearly answered by Mr. Hariharan. Hence, this query does not require any further replies. If you are not going to give any compensatory off (C/Off), then you have to pay the regular 1-day wages plus double overtime for the number of hours he worked. If you are granting him 1 day C/Off, then you only need to pay double overtime.

I hope you understand the concept. You cannot create any additional rules in your Model Standing Orders against the Act.

Regards
janarthanan .v
Dear boss2966,

You are again twisting Mr. Hari's concept. Please read carefully that he is stating one regular wage and one day of extra wages. However, you are stating three wages.

I am not clarifying as I didn't find clear details from law books. Please revert back to my question.

Regards, Jana
boss2966
If you engage any workmen on the weekly off, you can compensate with a compensatory off (C/Off) and pay regular wages, or you have to pay overtime for the work he has done (normally overtime is double the rate of wages). As you seek clarification here, you have to pay him the paid holiday wages plus overtime wages for the hours he worked. Hence, if any person works on Deepavali day, he must be paid for one day's present (whether he works on that day or not), and if he works for 8 hours, he will be getting overtime wages (double OT rate of wages). Hence, it will become thrice the wage rate.

Hope you have understood the concept of paid holiday wages and the overtime procedure.
v.harikrishnan
Dear Mr. Janarthanan,

As the views expressed by me and the views of Mr. Bhaskar in this thread are at variance, I feel that I need to place my views in the proper perspective.

A. Labour Laws Regulating Working Conditions in India

The following laws relating to labor regulate the working conditions of workmen/employees in India. These laws have all-India applicability.

1. Beedi and Cigar Workers (Conditions of Employment) Act 1966.
2. Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996.
3. Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act 1981.
4. Dock Workers (Regulation of Employment) Act 1948.
5. Factories Act 1948.
6. Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979.
7. Mines Act 1952.
8. Motor Transport Workers Act 1961.
9. Plantation Labour Act 1951.
10. Sales Promotion Employees (Conditions of Service) Act 1976.
11. Weekly Holidays Act 1942.
12. Working Journalists (Conditions of Service and Miscellaneous Provisions) Act 1955.

B. State-Specific Legislations

Apart from the above legislations having all-India applicability, which regulate the working conditions of workmen/employees employed in different sectors of employment, almost each State in India has passed legislation to regulate the working conditions of workmen/employees employed in Shops, Establishments, and Commercial Establishments. These Acts are applicable only in the particular State which enacted that law.

C. National/Festival Holidays

The legislations listed in paragraph A above do not provide for the grant of national/festival holidays, and there is no law with all-India applicability that requires an employer to grant national/festival holidays to employees. Some States might have amended the laws enumerated in paragraph A to incorporate the grant of national and festival holidays. Such amendments will have force only within the States carrying out those amendments. Some laws passed by individual States to regulate the working conditions of employees employed in Shops and Establishments may provide for the grant of national/festival holidays to those employees.

Some States, like Tamil Nadu, have passed separate legislations requiring the employer to grant national/festival holidays to employees. In Tamil Nadu, the Tamil Nadu (Industrial Establishments) National and Festival Holidays Act requires an employer of an industrial establishment to grant in a year four national holidays and five festival holidays to employees. This Act defines the term "industrial establishment," and all industrial establishments situated in Tamil Nadu that come within that definition are covered by the provisions of this Act. The workmen/employees as defined in that Act and who are employed in such "industrial establishments" are entitled to four national holidays with wages and five festival holidays with wages in a year.

The Tamil Nadu Act referred to in this paragraph also gives power to the employer to require an employee to work on a national/festival holiday. This Act also prescribes the rate of wages to be paid to the employee who is required to work on a national/festival holiday. According to this Act, if an employee is required to work on a national/festival holiday, he has to be given wages for that day and a holiday with wages on a day within three days prior to the national/festival holiday or within three days subsequent to the national/festival holiday. Alternatively, the employee who is required to work on a national or festival holiday could be granted "twice the wages." The choice is that of the employee and not that of the employer. This Act is specifically silent as to the entitlement of a national/festival holiday if the national/festival holiday falls on a weekly holiday. The presumption is that if a national/festival holiday falls on a weekly holiday, the worker is not entitled to any other additional benefit.

D. Example: National Holiday on 26th January 2012

Now, coming to your example of the national holiday on 26th January 2012, I assume for the purposes of this discussion that the "industrial establishment" referred to by you is a factory as defined under the Factories Act and is situated in Tamil Nadu. This day is a Thursday. If 26th January 2012 happens to be a weekly off day for the worker, then he gets no benefit of the Tamil Nadu Act. If it is a working day for the worker, then he can avail the national holiday on that day. If he is required to work on 26th January 2012, then the options to the worker in Tamil Nadu are (i) he could claim to be paid for 26-1-2012 twice the wages (1+1 =2) or (ii) in the alternative, he has to be given a holiday with wages either on 23rd January or 24th January or 25th January or 27th January or 28th January or 29th January.

E. Overtime Considerations

The next question is whether any overtime is involved if this worker is required to work on 26th January. I again assume for the purpose of this discussion that the daily hours of work for the worker in the example who is assumed to work in a factory is 8 hours per day. Therefore, the weekly hours of work would be 48 hours per week. According to the Factories Act (I have assumed for the purposes of this discussion that the worker is employed in a factory in Tamil Nadu), the worker is entitled to get overtime if he works for more than 9 hours in a day or for more than 48 hours in a week.

F. Example Analysis

Now please consider the example. If the weekly holiday for the worker falls on 26th January 2012 and if he is not required to work on 26th January 2012, then there are no issues. For the purpose of this discussion, I have assumed that the weekly off of the worker falls on Wednesday. If the worker is required to work on 26-1-2012 according to the Tamil Nadu Act, he should be given twice the wages for working on 26-1-2012 or he should be given a holiday with wages on any one of the three days following or preceding 26-1-2012. The following table indicates the hours he would have worked each day and during the whole week if the worker is required to work on 26-1-2012 and is given a holiday with wages on 24-1-2012 in lieu of the work on 26-1-2012.

Day | Date | Hours Worked
--- | --- | ---
Sunday | 22-1-2012 | 8
Monday | 23-1-2012 | 8
Tuesday | 24-1-2012 (Holiday in lieu of work on 26-1-2012) | 0
Wednesday | Weekly off | 0
Thursday | 26-2-2012 (Required to work by the employer) | 8
Friday | 27-1-2012 | 8
Saturday | 28-1-2012 | 8
Total hours worked for the week | | 40

The worker had not worked for more than 48 hours in the week and he has not worked for more than 8 hours in any day and is therefore not entitled to any overtime. In case the worker is given twice the wages for working on 26-1-2012, then the hours he would have worked during each day and during the week will be as indicated in the following table.

Day | Date | Hours Worked
--- | --- | ---
Sunday | 22-1-2012 | 8
Monday | 23-1-2012 | 8
Tuesday | 24-1-2012 | 8
Wednesday | 25-1-2012 (Weekly off) | 0
Thursday | 26-1-2012 (Required to work on this National Holiday) | 8
Friday | 27-1-2012 | 8
Saturday | 28-1-2012 | 8
Total hours worked during the week | | 48

In this case also, the worker has not worked for more than 8 hours in a day or for more than 48 hours in the week. Therefore, he is not entitled to any overtime wages.

G. Overtime Wages in Tamil Nadu

In Tamil Nadu, the requirement to pay overtime wages and the rate of overtime wages are governed by the provisions of the law relating to working conditions applicable to the particular "industrial establishment" (either a factory or mine or plantation or shop or commercial establishment) and not by the Tamil Nadu (Industrial Establishment) National and Festival Holidays Act or by any other law.

H. Clarification on Mr. Bhaskar's Post

In his post, Mr. Bhaskar has not indicated the law based on which he made the statements contained therein.

I. Clarification of Previous Post

I have clarified the contents of my previous post in this thread in case you have any doubts/reservations regarding its contents.

With regards
janarthanan .v
Thank you for your detailed explanation of my query. I now understand the concepts clearly. I am presently working in Jamshedpur, which comes under the Bihar Factories Act. If you are aware of the National and Festival Holiday rules for this location, please provide that information.

I am looking forward to your kind explanation. Thank you in advance.

Regards,
V. Janarthanan
Mob. No: [Phone Number Removed For Privacy Reasons]
v.harikrishnan
In Bihar, there is a law called the Bihar Industrial Establishments (National and Festival Holidays and Casual Leave) Act, 1977. This regulates the grant of national and festival holidays in that state. I do not have a copy of this Act, and I am unable to locate it on the internet either. A thorough reading of this Act and the rules framed thereunder is necessary to form a view on the applicability of this law to the establishment in which you are working.

Regards,
V. HARIKRISHNAN
janarthanan .v
Thank you for your kind response. I have gone through the act but am still unclear. I have reached out to neighboring companies to inquire about the procedures. They have advised me to pay three wages - one normal wage and two wages based on the hours worked on January 26th.

Since my payroll is managed in Chennai, I am unable to proceed without the necessary documents. If you know any influential individuals in your network, could you kindly arrange to obtain the documents and send them to me? Your assistance would be greatly appreciated, sir.

Thank you in advance.

Regards, V. Janarthanan
soundar.msw
Dear V. Harikrishnan Sir,

To add to this thread, there are many such companies involved in a continuous working process in BPOs (i.e., essential services). Is there a process to register such companies/departments with the labor inspector? If so, can you please provide a brief explanation?

How does the National and Festival Holiday Act apply to them, and what is the process?

Regards,

Soundar Raj M
aravindan-balashanmugam
Dear Mr. V. Harikrishnan, can the below reference be taken as a guideline for industries in states where there are no clear laws or rules regarding National or Festival Holidays?

Industrial Employment (Standing Orders) Central Rules, 1946

10. Festival holidays and leave. -- (a) There shall be seven paid festival holidays or as laid down in an agreement or an award in force. Out of these seven days, Republic Day, Independence Day, and Mahatma Gandhi’s Birthday shall be allowed without option, and the rest of the days shall be fixed by agreement or local custom. Whenever a workman has to work on any of these holidays, he shall, at his option, be entitled to either thrice the wages for the day or twice the wages for the day on which he works, in addition to availing himself of a substituted holiday with wages on any other day or as laid down in an agreement or an award in force.

Thanks & Regards,
Aravindan B
1 Attachment(s) [Login To View]

careers@mahanes.com
My query is different. Holidays like 26th Jan or Mahashivratri, are they paid holidays for daily wage workers?
KK!HR
On such holidays when the establishment is not working, treat the daily wagers at par with the regular employees and pay them. There should not be any discrimination against the daily wagers. Republic Day, Independence Day, Gandhi Jayanti, as well as the declared company-specific holidays, are compulsory paid holidays for all employees.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute