Working in India but No Leave on Indian National Holidays – Is This Fair?

Hi, I am working in a US-based company, but it is an India Pvt Ltd. We are working in the India branch, but we are not getting leave on the 15th of August or 26th of January without any compensation. They give us leave on the US Independence Day instead of India. Is this allowed?

Leave Rules for National Holidays

The leave rule for national holidays is determined by the location of the business, whether it is a factory or an office for non-government organizations. These rules are covered under different state acts or by notifications issued by state governments.

Kindly refer to the Bombay Shops & Estb. Act, 1948, Chapter VII, Section 35, Clause 4.

Cheers,
A.B

Yes, as per the US policy, you need to follow the rules. If the company is not showing accountability for the accounts as per Indian labor laws, i.e., PF & ESI, please let me know if you need further assistance or have any other questions.

It can never be possible, and if you are facing such a problem, then please go to the labor office and inform them. Whenever it's open, even on any national holiday, they will make a file and file a claim against it. It can lead to the shutdown of the company because it is very strict to open any factory, company, etc.

Thanks & Regards,
Sandeep Rathi
[Email Removed For Privacy Reasons]

Further to the above comment, if an employee works on a public holiday or weekly off, the company has to either pay his/her wages in double or provide a compensatory off. It also helps if a comprehensive Leave & Attendance Policy is prepared and informed to all employees. Hope this helps.

Best Regards,
Abdul Razak N.

If you are working in a private limited company in India, the concerned state rules are critical when it comes to holidays. Being a subsidiary of a US company or working in a BPO, where employees typically work according to Customer Time Zones, holidays, etc., some of the Indian public holidays such as Independence Day, Gandhi Jayanti, Republic Day, etc., are essential holidays for employees. However, for business continuity, if an employee has to work on such holidays, the employer has to compensate the employee according to prevailing rules.

Request for Information on State Laws

Please mention the state you are working in and the type of organization—factory or establishment—as laws can differ from state to state. You need to brief your principals on the 'compulsory holidays' as mentioned in the Mumbai Shops Act. They will definitely need to make changes based on this information.

Thank you for your response. However, did you know that more than 1,000 people worked on all national holidays without any compensation? Surprisingly, no one has spoken up about this yet. Is there a possibility of someone taking action, or am I at risk of being dismissed for raising a complaint?

Applicability of Indian Labor Laws to Foreign Subsidiaries

Whatever the home country of the institution that has its branch or subsidiary unit in India, all Indian Labor Laws would be applicable as long as it is an industrial establishment. Particularly, leave provisions are designed in response to local/regional customs prevailing in the geographical area. It is advisable to bring this to the notice of the enforcement authority concerned, either directly or indirectly.

Legal Implications of National Holidays

It is illegal to deny leave on national holidays as per the National Holidays Act. You can write an anonymous letter to the labor department. They will conduct a raid on the premises during the holiday and impose a heavy penalty on the employer. The address of the labor department under jurisdiction is available on the web.

Regards,

Addressing Policy Changes for National Holidays

1. The person who raised this issue/thread can, in my opinion, also address the issue through the proper channel within their organization. They can request the administration to change their policy regarding observing National Holidays as per Indian laws. I believe no multinational corporation would want to violate the laws applicable in the country where they operate their offices or business.

2. This issue, in my opinion, can also be raised by the person through their Trade Union or Employees' Representatives with the employer or administration.