Is the NIA Holiday Mandatory for Private Companies, and Can They Ask for Compensation Later?

My question was not clearly posted earlier as I am new to the forum. I wanted to know if the holiday declared under NIA is also applicable to private establishments. There was a communication addressed to the Labour Commissioner to issue instructions to all private establishments, including those covered under the Industrial and Commercial Shop & Factory Act, to declare a holiday on 30-07-2015 on the day of the funeral of the former President of India.

Now, could the seniors/experts clarify if the establishments, after declaring the holiday, can ask the employees to compensate for the day? It is rather confusing as on one hand, we have the Honorable Supreme Court's decision and on the other, a Government Order and a letter to the Labour Commissioner issued.

I would be thankful if this could be clarified.

Observance of Mourning for National Leaders

It is correct that on the day of death or funeral of national leaders, we have to observe mourning. But the real question is, at what and whose cost? Please find attached a copy of the Supreme Court Judgment which states that the Negotiable Instruments Act is not applicable to private industrial establishments. If employers have to declare a paid holiday, it will result in a loss in production, as well as several crores of payments for wages and other charges.

Attached is a message from our great and beloved leader Bharat Ratna Dr. A. P. J. Abdul Kalam regarding this matter, which deserves appreciation and should be followed to pay respects to the great leader. Employer's federation and other forums should represent to the Governments to grant exemptions to industrial establishments and other commercial establishments or permit them to compensate for the day or declare it as a holiday without pay. This issue assumes great significance, and we must make a collective decision immediately in the interest of all concerned to avoid any untoward happenings after any such incident in the future.

Regards,
N. Nataraajhan, Sakthi Management Services [Phone Number Removed For Privacy Reasons]; [Email Removed For Privacy Reasons]

Understanding Holiday Declarations Under the NI Act

It's highly regrettable that the State Governments don't care two hoots about a Supreme Court (Constitution Bench) judgment on the subject. A holiday declared under the NI Act is solely for the purpose of saving the validity period of a negotiable instrument like a cheque, promissory note, or bill of exchange, without which it would be barred by limitation and for no other purpose. A holiday declared by the Government to protect banking transactions has nothing to do with the working hours/holidays pertaining to industrial/commercial establishments, which are governed by other specific legislations. Therefore, your establishment ought not to have declared a holiday in the first place.

Now, having availed of a holiday on 30.07.2015 to 'mourn' and 'grieve' over the death of Dr. Kalam, I feel your establishment would be well within its right to ask its employees to compensate for the holiday granted, which was not legally due. When you make such a demand, I am sure that you will get a true picture of how much we really 'love' and 'respect' our beloved former president who was an epitome of hard work and who passed away during work!

Regards

Thanks for the reply posted.

I agree with Mr. N. Nataraajhan that the Central and State governments should be represented by the Employers' Federation to avoid untoward incidents, maintain law and order, and reduce the financial burden on small and medium-sized industries. We do not deny the greatness of national or state-level leaders; however, clear guidelines are needed to act upon. There are different types of industries dealing with continuous processes as well.

Hassan1953.