Working Overseas on a Public Holiday: Should I Get Double Pay Under Bombay Shop Act?

I'm working in an MNC in Pune and have the following query. If an employee works overseas on a public holiday (2nd October), are they entitled to double wages for that day? My company is registered under the Bombay Shop and Establishment Act.

Guidance Needed

I need guidance on this. If anyone has a circular regarding the same, please share.

Thanks,
Bhagyada

Applicability of the Bombay Shop and Establishment Act

The Bombay Shop and Establishment Act applies only within the state of Maharashtra. Therefore, it will not govern the conduct, terms of employment, or hours of work of an employee who is located outside the jurisdiction of the state.

(An exception would be an employee who has gone for a particular work and will return after a short time.) You need to follow the rules that apply in that particular country, not in India.

Holiday and Overtime Policies for Establishments

The establishment has to grant holidays as per various enactments applicable to the establishment, including the National Holidays Act. Accordingly, overtime (OT) and compensatory off should be provided. The establishment can offer benefits that are superior compared to the provisions of the enactments but not inferior.

Policy on Leave, Holidays, and Overtime

The establishment must have a clear policy on leave, holidays, and overtime for employees who are being deputed to other locations. These policies should be well-known to employees and preferably provided in advance. For example, the establishment can communicate that the leave/holiday entitlement would be as applicable in that location or as in the head office (HO) of the company.

Gossip, rumors, and hearsay cannot be considered as policies or rules.

Could you please explain the last line? I am not able to understand what you mean.

Dear All,

Thanks for your reply; this information is very much appreciated.

Clarification on Employee Exceptions

Saswata Banerjee: As you mentioned in the reply, an exception would be an employee who has gone for a particular work and will return after a short time. Can you elaborate on this? Our employees were deputed to the USA for the project, which was for 2 months. Therefore, there were no specific policies in this regard. They come back and claim compensatory leave and double wages as per the Bombay Shop and Establishment Act.

First-Time Situation Handling

Ddoaba: As this situation has come up for the first time, we didn't have any policy regarding this.

kumar.s.: Thanks for the link. I'll check that.

Adv. Manoj Liyonzon - The location was the USA to one of our group companies.

Thanks,

Bhagyada

A short period is actually exactly that - a short period. I had 3 people from my office in Dubai for a 5-day stock verification exercise. They will have to be paid extra for working on Sunday. However, if they were to be posted for a month or 3 months in Dubai, they would not get paid for Sundays and instead get Friday off (which is the rule in the Gulf). The line in the sand is probably whether the employee has enough time to adjust to the local system. I think a 2-month deputation is more than enough time.

The simple answer to the question is yes. You have to double the wages as the employee is on your payroll and was on duty on the said date.

Entitlement to Overtime and Compensatory Time Off

The answer to the above query is yes. As per the law, employees are entitled to overtime (OT) and compensatory time off (comp. off) if working on a National Holiday. Additionally, the company must adhere to Indian holidays regardless of whether they are supporting international clients from India.

Thanks