Working for a US Company in India: Is It Legal to Deny Leave on Indian Holidays?

Can someone please advise on the following issue? I work in an Indian Pvt. company that outsources its services to a US (United States) company. My question is that the company does not grant leave on any Indian holidays (not even 15th August, 26th January, etc.). It was mentioned to me during my interview, but I would like to know if there is any special provision provided by the government to any company for not granting leave on such holidays.

Please advise as soon as possible.

Thank you.

Company Registration and Legal Applicability

Please let the forum know whether the company you are working for is registered with the ROC of India or not. If the company is registered, then all applicable laws pertaining to Indian origin will be applied. The company outsourcing its services to the US is not the criterion for any applicability of the law.

I think the thread starter is working for a BPO based in India and servicing US clients. Indian laws apply to all companies registered in India.

Pon

Yes, anonymous,

Those companies whose headquarters are in foreign countries and have branch offices in India, registered under the Indian Labour Act rules, must follow Indian declared holidays. Additionally, the United Nations Organization (U.N.O) and its wing, the International Labour Organization (I.L.O), establish guidelines for all member nations to implement specific labor welfare programs and rules. Therefore, it is an international obligation to provide labor protection from harassment.

You have every right to inquire about Indian national festival holidays, such as Independence Day, October 2, January 26, and May Day. These five holidays are mandatory for all, regardless of the presence of multinational companies in India.

Write a note to the embassy of the company highlighting the discrimination in not providing national festival holidays.

Okay.

Indian Constitutional Protection for Holidays

The above four holidays have our Indian constitutional protection. All other religious festival holidays, we have no right.

National Holidays and Work Exigencies

The national holidays are only on the 15th of August, 26th of January, and 2nd of October, and they have to be necessarily observed as holidays. However, there is a condition: in cases where work exigencies demand it and subject to the provisions of the National Holidays Act applicable to your state, these holidays could be converted into working days.

From your query, it is not possible to discern the state where you are located. Many states like Uttar Pradesh, Kerala, Tamil Nadu, Bihar, Andhra Pradesh, Orissa, Karnataka, etc., have enacted the Industrial Establishment (National & Festival Holidays) Act, and you have to consult the provisions made therein. As a general rule, it can be stated that a person working on such holidays would receive additional payment, an additional holiday, or both. In any case, by putting a condition during the interview that you have to work on the National Holidays of India cannot deprive you of the compensatory arrangement provided in the statute. Upon receiving more details, the matter could be further examined for the legal remedies available.

Regards,
KK

Yes, sir, as per my knowledge, the May Day holiday is implemented in India as a holiday according to the I.L.O. charter, which is binding on all its member nations. The provision for an alternate holiday and double payment on that prescribed holiday if anyone works is a well-known feature. The point is whether that company has accepted declaring the above days as Indian holidays. Anyhow, clarity is required to decide anything, sir.

National Holiday Laws and Company Policies

There is no specific law at the national level that specifies national holidays. However, there are specific laws in some states. You need to first state which state you work in, and then a proper answer can be given.

In general, nothing actually stops the company from making you work on a national holiday. It is only on election day that they are compulsorily required to give you a holiday. On all other national and festival days, if you are required to work, it is counted as overtime, and they have to give you double-rate wages (on gross, not basic + DA) as compensation for the same.