Nationwide Bandh on May 31, 2012: Is It Fair to Work on Sunday as Compensation?

On 31st May 2012, there was a nationwide bandh called by the leftist government. Upon observing the situation, my company declared a closure for the day.

Sunday, 3rd June 2012, has been designated as a working day for employees in exchange for the compensatory day off granted on Thursday, 31st May 2012.

Is this arrangement acceptable?

Understanding Compensatory Off

The concept of compensatory off involves granting a holiday on a working day to an employee for having worked on a holiday. Therefore, an employee should work first on a holiday to enjoy compensatory off later on a working day. In the instant case, it is reversed - the employees enjoyed a holiday on a working day first and worked on a holiday later. It is okay as an administrative adjustment if there is no technical problem involved.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Arrangements like this have no legal backing. However, I must compliment your company for being innovative. This affects almost everybody positively. Such arrangements should be adopted by more and more companies to combat the loss of man-hours and production in an industry.

It completely depends on the company policy. Secondly, they may ask you to work an extra day in such cases. Actually, it will usually be executed only when really required and during busy schedules, such as Sundays. Being able to understand the feelings... A few of the companies have not even declared a holiday on the Bandh day. I shall not mention them; they just straightforwardly stated that the company policy does not support a holiday on Bandh. (It's one of the reputed MNCs)

Under the Factory Act, compensatory off must be within 3 days before or after the weekly off on which they worked. So, since it's within 3 days, you are correct in applying the rule. I don't know how this works under the Shop and Establishment Act, but the rules generally work in tandem.

I agree with Mr. Saswata on the point of law. However, what I am doubtful about is whether it can be called a compensatory off within the framework of Sec. 52 of the Factories Act. All the same, it is a harmless adjustment to be encouraged.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

I fully agree with Sri Saikumar, who explained well the importance of compensatory off. Some of the hotels also had displayed boards saying May 31st will be a holiday, but adding that coming Sunday, 3rd of June, they will be open! Obviously, they do not want to lose a day's business. Many hotels have borrowed from banks and they have to pay interest periodically, so they work on Sunday in lieu of a holiday on May 31st. Whatever they earn on that day will be paid towards the interest on the bank loan!

Many shops are following 24X7 partially. They keep their shops open on Sundays also and earn something on that day so they can earn and pay towards the interest on their bank loan. "Instead of sitting idle at home, let me do some business on that day and earn something. That will reduce my financial burden a little, and customers will be happy for the service on all seven days," they say!

Regards,
M.J. Subramanyam, Bangalore

Conditions for Changing the Weekly Holiday

There are two conditions to be met while changing the weekly holiday:

1. The substituted weekly off has to be within three days (+/-) of the original weekly off.
2. There shall not be more than 10 consecutive working days.

In the proposed case, both conditions are met, and hence there is no legal impediment. However, you are also required to give prior information to the area Labour Inspector regarding the above change.

This is a very good intervention tactic to help preserve the working days and is in the organizational interest.

Regards,
KK

Yes, Mr. Saswata and Mr. Nair are right. A holiday can be substituted three days before or after the weekly off in the case of factories.

Regards,
B. Saikumar
Mumbai

Dear Sai, thanks for the input. But what I feel is that due to the company itself declaring the day off and sending the employee on a "forced holiday," can a company take such a risk by paying the employee for a day due to this closure? After all, business is all about risk. Even if the company wanted us to work on Sunday, it should be a paid day instead of a "compensatory day." Have I been too straightforward?

Regards

Dear Sai,

This is not the first time. Even when a bandh was called by CITU months ago, employees had to compensate by working on Sunday. I just wish that if the employer wants the employee to compensate, they should be paid, if not double, then at a normal rate. Is it possible?

Regards,
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As other members have suggested, the weekly off can be substituted three days before or three days after it within a period of ten days. If you require a worker to work on a holiday and wish to compensate them, the wages thus payable are called overtime wages, which shall be double the normal wages, whether it is a factory or commercial establishment.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai