Is October 2nd Still a Mandatory Holiday? Seeking Your Thoughts on Holiday Flexibility

Hi All,

As per the Negotiable Instrument Act, a company needs to give 10 holidays in a year, out of which 6th January, 15th August, 1st May, and 2nd October are compulsory.

I had a discussion with some of the HR and Labour Law consultants, and they confirmed that 15th August and 26th January are compulsory, but 1st May and 2nd October are optional. I would like to know your view on this. Please treat this as urgent and send me your views.

I personally believe that Bapu was a strong believer in working hard and never supported a person not working for some reason. Even in actuality, we don't do anything on that day to remember him; if we don't take off on that day, we can have one extra day off at the time of Diwali when we actually need time to spend with our family. Would like to have your view on this.

Regards, Sweta

Shweta,

I agree we should work on 2nd October as we are also observing Gandhi Jayanti. I believe this is a good tribute to him as well.

Bharat.

Hello,

In Maharashtra, the Bombay Shops and Commercial Establishments Act mandates that 26th January, 1st May, 15th August, and 2nd October are paid holidays. If anyone suggests anything other than this, it is incorrect in Maharashtra.

Additionally, the Negotiable Instruments Act specifies days on which financial instruments may not be negotiated. On these days, banks will be closed. Holidays declared by the Negotiable Instruments Act differ from what is commonly referred to as "Govt. Holidays," during which government establishments do not operate.

It is important to note that both sets of holidays are not binding on shops and establishments covered by the Bombay Shops and Commercial Establishments Act. This act independently mandates the aforementioned four days as paid holidays for shops and commercial establishments in Maharashtra.

If you require further clarification, please feel free to contact me.

Regards,
samvedan
September 28, 2007

Most companies in Pune and most other cities don't have holidays because they must operate 24/7 to provide services. For example, during Diwali, our company remains closed for 8 days. However, the security personnel do not take leave as they need to maintain vigilance round the clock.

In ITES companies that operate 24/7, employees working on holidays should be compensated either with a day off on another day or through overtime pay, with their consent. This, in my opinion, should be the standard practice. However, insights from individuals working in 24/7 industries would be valuable to clarify this further.

Hello,

If some companies in Maharashtra do not declare a holiday on any or some or all the days specified under the Bombay Shops & Commercial Establishments Act, then they have either obtained an exemption or are following a wrong (illegal) practice and fortunately, they are not yet caught in the act! That does not make their practice LEGAL.

This Act does not differentiate between an ordinary regular industry and a Software industry or an ITES. It applies uniformly, and the only way to have independent practices is to seek an exemption or carry on regardless of the law and make merry until you are caught.

Regarding holidays on Diwali, these are not the specified holidays under this Act anyway. So check your practices. It is better to obtain a copy of the said Act and check it out for yourself!

Regards,

Samvedan

September 29, 2007

Dear Samvedan,

I am totally unaware about ITES and 24/7 companies, but I think there must be some employees who work on holidays like 15 Aug and 26 Jan also. I had 2-3 friends in BPO who told me they work 24/7, meaning on Diwali and Independence Day as well, since their clients are from the US or abroad. It's a great loss to them if they keep it closed.

So, these 24/7 companies must be doing this hiding from the government and fooling the government, I think so. What do you think?

Thank you.

Dear Samvedan and other members,

Just now I chatted with my friend on the above topic, and here is the discussion for your information.

My friend has worked in a BPO, and this is his opinion.

ME: Yeah, really good. Do tell me one thing. You were working in a BPO, so it's 24/7 and works at night too, right?

MY FRIEND: Yes.

ME: So on August 15, and January 26, and on Diwali, festivals, etc., it remained closed, or did some employees work? Count the night also.

MY FRIEND: Ravi, the organization used to run 24 hours, 7 days.

ME: But as per government rules, there are specific days where all companies need to give holidays, right?

MY FRIEND: And employees were given leaves and offs according to the availability and priority of festivals and religion.

ME: So on these days, was the company really closed or working?

MY FRIEND: Those are MNCs, not Indian companies.

ME: But they are in India.

MY FRIEND: They don't need to follow Indian policies and all.

ME: Oh, and if they follow, it will be a total loss to them, right?

MY FRIEND: If Indians are investing, then it's their wish to follow whatever rules.

ME: Since keeping it closed would mean a loss of money, even for one night, right?

MY FRIEND: Correct.

ME: But they must need to follow the August 15 and January 26 holidays, else they may face legal action.

MY FRIEND: They don't need to. Why do they have to?

ME: Mmm, okay.

MY FRIEND: People who are working should know very well that they are in an MNC and they have to follow what their boss says. If not okay, they may leave.

ME: Oh, that's really bad, even though we work for an MNC.

MY FRIEND: Why bad?

ME: We are Indians.

MY FRIEND: They pay you. So August 15 and January 26 are our compulsory holidays, right?

ME: They don't treat you like slaves, though. We get a lot of respect from MNCs than Indian companies. And they keep their decisions open. They are the most professional.

---
I have corrected the spelling, grammar, and punctuation errors in the text. I have also ensured proper paragraph formatting with single line breaks between paragraphs.

Hello,

As far as "opinions" go, I respect all opinions - even opinions unsupported by law. There is nothing in the statute book that MNCs are exempt from Indian laws and that they do not have to follow Indian law. Your friend's opinions in this regard are not even remotely connected with the legal position on the subject. But forget my advice. In my last post, I had requested all to obtain a copy of the Bombay Shops & Commercial Establishments Act and check the position yourselves. If instead of doing that one likes to rely upon or be guided by an opinion unsupported by law, all I can say is, "to each his own!!" I rest my case.

Regards,
samvedan
September 29, 2007

Dear Samvedan,

Could you please tell me the applicability of the Bombay Shops & Commercial Establishments Act and to which industries/states it applies?

Thank you.

Hello,

Given below a VERY BRIEF extract of the act. I will send detailed reply to your query on Monday/Tuesday. Suffice it say that the Act has a jurisdiction in the whole of Maharashtra. (Similar acts exist in each state anyway) It applies to all establishments except Factories registered as such under the Factories Act. A Shop, Cinema Theatre, Head Office of a corporate, or any other commercial establishment, Hotels, Eateries, Canteens and Clubs all are covered and bound by the act. It is better to obtain a copy and refer to it from time to time.

Regards

samvedan

September 30, 2007

-----------------------------------

Bombay Shops & Establishments Act 1948

About What:

1. To regulate conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, other places of public entertainment and other establishments.

2. Provisions include Registration of Establishments, Employment of Children, Young Persons and Women, Leave and Payment of Wages, Health and Safety etc.

Applicability & Coverage:

1. It applies to all local areas specified in Schedule-I

2. Establishment means any establishment to which the Act applies and any other such establishment to which the State Government may extend the provisions of the Act by notification.

3. Employee means a person wholly or principally employed whether directly or through any agency, whether for wages or other considerations in connection with any establishment.

4. Member of the family of an employer means, the husband, wife, son, daughter, father, mother, brother or sister and is dependent on such employer

Returns:

1. Form-A or Form-B (As the case may be)

Sec. 7(2-A), Rule 5

Before 15th December of the calendar year, i.e. 15 days before the expiry date.

The employer has to submit these forms to the authority notified along with the old certificate of registration and the renewal fees for minimum one year's renewal and maximum of three year's renewal.

2. Form-E, Rule 8

(Notice of Change)

Within 15 days after the expiry of the quarter to which the changes relate in respect of total number of employees qualifying for higher fees as prescribed in Schedule-II and in respect of other changes in

the original statement furnished within 30 days after the change has taken place. (Quarter means quarter ending on 31st March, 30th June, 30th September and 31st December)

Registers:

1. Form-A, Rule 5

(Register showing dates of Lime Washing etc.)

2. Form-H, Form-J, Rule 20 (1) (if opening and closing hours are ordinarily uniform)

(Register of Employment in a Shop or Commercial Establishment)

3. Form-I Rule 20(3), Form-K (if opening and closing hours are ordinarily uniform)

(Register of Employment in a Residential Hotel, Restaurant, Eating-House, Theatre, or Other places of public amusement or entertainment)

4. Form-M, Rule 20(4)

(Register of Leave)

This and all the above Registers have to be maintained by the Employer.

5. Visit Book

This shall be a bound book of size 7”*6” containing atleast 100 pages with every second page consecutively numbered, to be produced to the visiting Inspector on demand. The columns shall be:

i. Name of the establishment or Employer.

ii. Locality

iii. Registration Number

iv. Date, and

v. Time.

Dear Samvedan,

Thank you for your informative messages. I would like to request all members to discuss the matter logically and concisely.

I would like to add here that prior to 2001 when I was in Delhi, I personally witnessed how strictly the government enforced the 2nd of October as a National Holiday. Apart from essential services such as medical facilities, food establishments, restaurants, and transportation, all other shops and establishments were compelled to remain closed by the government. If anyone dared to open, the police (petrol police) would take immediate action, which could include arrest or fines, or both. I am not certain under which specific act they operated (it may even be applicable today).

Now, Mr. Samvedan, I would like to request your guidance on the law/rules that define National Holidays and the penalties for non-compliance. Furthermore, who would be held accountable for this offense (the Manager as defined under the Factories Act or the organization), and what are the consequences of not adhering to it?

Instead of debating what is good or bad, let us focus on what the rules state, which rules are applicable, and the resulting consequences.

Thank you.

Ranjan

Hi all,

As per the W.B. Shops & Establishments Act, 2nd October has been declared as a holiday.

Regards,
Shaswati

October 2nd is to be declared a holiday compulsorily. Some companies do not follow this, but being let off by the labor officials does not mean that it is legal. The companies would have submitted the leave details to the Labor office, mentioning that Oct 2 would be declared a holiday. The following 4 days are compulsory holidays to be declared: 1. Jan 26 2. May Day 3. Aug 15 4. Oct 2. No State Act can claim exemption from these. With special permission claiming to give compensation either in wages or compensatory holiday makes them eligible to work. This should apply even for all those who work 24x7.

Hey, we worked on Oct 2nd, and it'll be compensated with double pay for that day. My doubt is if a person is not coming to the office on that day, should I take that it's a holiday and the person not to be paid the extra one day wage, or consider that person was on leave and put it in his leave bank. Someone please advise on the same.

Dear Friends,

My query is still unanswered. Can anyone guide me under which law the National holiday is defined? And under which law, section, or rule are the consequences of not following the National holidays given? I would request all our learned members to mention the law and section whenever we are giving any suggestions or guidance as far as possible. This will help less experienced persons like me to go through the same and take a reference.

Regards,
Ranjan

I work for a company that has its headquarters in the USA. We cater to our company's customers based on USA timings (Night Shifts).

During the above four days, we work and receive double pay for that. Is it compulsory to have a compensatory off also for working on these days? Or would either of the two options, [Either Double Pay / Compensatory off], be legally permissible, as per the decision of the management? Certain similar companies offer both double pay and compensatory time off.

Thank you for taking the time to reply.