Hi,
During my MBA & professional career in corporate houses, I faced this question again & again. Currently being a student of CS under, ICSI , I read different cases & corporate laws in details, clause by clause, section by section. Spent 8-10hours, in studies. Additionally taking care of business.
I don't know why this question is placed? Trying my best to understand from managerial perspective, finance perspective & legal compliance perspective. Hope after completing regular MBA, and student of CA /CS , I have the competency to understand this critical issue.
Q1.What laws says, about holiday?
Ans. Legally 3 holidays should or rather must be there- MANDATE & should be paid in nature, viz
1. Jan 26
2. Aug 15
3. Oct 02
4. Any specified day/days/date mentioned by Government of India, its wings or Judicial system as per constitutional requirements & following the constitution of India. Eg: Government possess rights to declare holidays during national emergency like war. All companies/firms(PVT,LLC,Public etc) are bound to follow such instructions.
Q2. We have seen, due to needs of business sometimes companies ask employees to work during these holidays, especially this happens in IT/ITES. Question is , can a company legally do it? (I have seen this a lot, work in national holidays like jan 26,Aug 15, Oct 02 when I was in IBM Kolkata, use to work as double payment was there & a lot of fun activities used to be there atleast for 30 minutes)
Ans. Yes. Now question arise how?
Ans. Say suppose monthly fixed salary an employee is INR 22,000 & total no of working days in that month=22.
So, Per day salary in that month =22000/22=1000 (We are not considering variable part).
Now, say month is August, and company needs employees to work in Aug 15th.
Ideally, since August 15, is a holiday, so PL /paid leave should be provided. Whether an employee work or not work as per law, he/she must get INR 1000 for Aug 15. Any deduction- part or wholly, in lieu of absenteeism on Aug 15, if done, it will be considered Illegal. And Employee has legal right to challenge the decision in such cases.
If any employee, agreed to work on Aug 15 (Should not be forced by employer & employee should take this decision by free will), he/she is allowed to do so. Here, since its a paid leave by law, so he/she will get INR 1000 credited in his/her salary account in lieu of paid leave & additional Overtime for the no of hours he/she will work in Aug 15 . If employee work for full day, then he/she will get additional INR1000. Thus total salary on Aug 15, will be INR 2000.
OT have to paid as per clauses ,mentioned in Appointment letter. Forcing someone to work on Aug 15, is an offence. Working on national holiday, is entirely between mutual understanding of employee & employer, I would rather say goodwill gesture. If any employee is not ready to work even for OT, he/she should not be forced to do so.
ANSWERING YOUR QUESTION:
Election day is a holiday, as per direction provided by election commission of India. All companies, be it LLC,PVT,PUBLIC are supposed to follow guidelines of Election Commission. Violation of it, will means , interfering in someone's fundamental rights & fundamental duties as mentioned in Constitution of India. Additionally it would also imply challenging Election Commission. No, where compensating of work has been mentioned.
Who are eligible for leaves?
Only Citizens of India, who possess right to cast vote on that particular election date. Say, Office is located in Kolkata, And April 23,2014 is the date when people in Kolkata will cast vote. Then April 23,2014 should be holiday for all those employees in Kolkata who will cast vote. Not for employees, whose residence is in Delhi or Birbhum, West Bengal (employees cast their vote/prefer to cast their vote from Delhi/Birbhum) if date of election is different.
Q. Can any company ask employee to work on weekends, or sunday to compensate the holiday due to election?
And. NO.
Employer (Firm, Company, PVT company, LLC, Public) can ask employee to work on Sunday/week end, but it should be as per appointment letter clause, with reference to Over Time. Thus, guidelines, procedure, laws or rules what we follow under normal situation for over time or work in week off /Sundays, that should be followed. It must not have anything in relation with 'Compensating Holiday due to election'. Since, work in weekends /weekly off/Sunday is equivalent to performing OT, so here mutual negotiation for overtime must be followed.
If any employer, ask any employee to work in order to compensate a holiday for election, it will be considered Illegal.
Example:
Say April 23,2014 is a leave due to election.
Now, employer wish employees to work on April 27,2014 (Sunday). Employer have to follow normal rules, laws, guidelines, clauses in appointment letter & procedure , what they follow during work in Normal week off/week ends/Sundays. Like paying OT for working in Sunday/week off. This should not have any link with , with compensation of work due to holiday for election. If any employee/employees claim such things with circumstantial evidence which clearly signifies that employer forced employees to compensate a holiday for election, employer is violating the legal compliances. And can be legally challenged.
Regards
Sovik B
MBA- HR & Finance
Managing Director
S.S ENTERPRISE
Ph: 9051547598, E-Mail: [Login to view]