Are My Company's Holiday and Salary Practices Legal Under Section 25 Rules?

Hi, I am working in a microfinance company registered under Section 25, not for profit. There are only four compulsory holidays: Independence Day, Republic Day, Holi, and Gandhi Jayanti. Apart from these holidays, there are four optional leaves that anybody can take on the festivals listed by RBI. I want to know if this process is valid as per the law or not.

Question About Salary Calculation

Another thing I want to know is if my organization is paying us for only 26 days; Sundays are not included in it. Aren't they violating the law?

Regards

It does not matter whether your company is under Section 25 or a normal company. They are subject to labor law. There is nothing in labor laws that specify how many days the business must be shut.

On the other hand, there are state laws stating the number of days businesses must give holidays in that specific state. You need to check which applies to MP. As such, 8 days a year looks okay to me (please note this is in addition to weekly offs and annual leave as per the Shop and Establishment Act).

The monthly salary is what you are entitled to. It does not matter whether the employer divides it by 26 or 31 to work out the weekly salary. However, if they are dividing by 31, they need to pay for the weekly off. If they are dividing by 26, they should exclude the weekly off. However, the employer must ensure that the amount paid is above minimum wages.

The matter about minimum wages and 26 days is discussed repeatedly on the forum, please search and read those threads.

Regarding leave provisions, please refer to the Madhya Pradesh State Shops and Establishment Act and the Standing Orders Act.