Working on Public Holidays in India: What Are Your Rights and Pay Entitlements?

I'm working in a private software company. Since I'm working on a 24/7 project, I usually don't get Saturday and Sunday as holidays. However, I do get two weeks off between Monday to Friday. But that is not the issue. Sometimes we are asked to work on public holidays/national holidays. During these holidays, even though we work, we are not paid an additional salary or compensatory off. Instead, if we choose not to go to the office on these days, they mark it as a loss of pay (LOP). Could you please tell me how much an employee is entitled to be paid if they work on a public holiday as per Indian Labor Law?

Please note I'm from India and I work in a private firm.

As per my knowledge, if an employee works on a public holiday, he/she is entitled to receive double pay for that day and one extra holiday in the upcoming days for the same.

Thanks,
Sandeep Sharma

Holiday Work and Compensation in India

First, the company has to stick Form V (5) where the list of holidays is declared and submitted to the Labour Office. As you said, if worked on a public holiday, whether the day has to be mentioned in Form V. If so, the employer has to pay double or give compensatory time off (as per policy) to the employees who work on a particular day. If an employee takes leave, LOP should not be deducted, but the employer can do so if the statement is mentioned in the appointment order or in the Policy handbook.

Note: The employer should send an intimation letter to the Labour Office regarding the need to work on the mentioned public holiday.

Regards,
Teen

As per the query, we state that working on a public holiday entitles you to payment at twice the rate of wages with a compensatory day off to be taken within ten days.

Thanks & Regards,

Sumit Kumar Saxena

Dear Raj,

Three days, 26 January, 15 August, and 2 October, are national holidays, and employers have to compensate double salary along with a compensatory day off if working on these days. The remaining holidays (as per Form 5 submitted by companies) would be defined based on regional aspects. No additional compensation can be claimed for the rest of the holidays; however, the employer should provide a compensatory day off if employees work extra days.

Thank you.

Hello Raj,

Before delving into the Laws & Rules, could you please clarify/confirm these points:

1. You mentioned you are in a 24x7 project... Are your working hours synchronized with any other time zone, such as the USA?
2. Is this a Support or Software Development project?
3. Are you the ONLY one who is affected by such a Rule or are there others?
4. What has been mentioned in your Offer/Appointment Letter regarding this aspect?

While the law has been explained by other members above, your actionable options will depend on these aspects as well.

Regards,
TS

Please do not make statements that are wrong and not supported by law. You will end up misleading people. All companies in the organized sector follow these rules. It is applicable to both factories and offices, and it applies to all employees, irrespective of designation. Some state rules provide deviations for managers, but this is restricted to a certain number of people. Not everyone can be a manager.

Holidays Under the Negotiable Instruments Act and National and Festival Holiday Act

15 Aug
26 Jan
2 Oct
1 Nov (in BLR)

These are holidays declared under the Negotiable Instruments Act, 1981, and the National and Festival Holiday Act, which apply to all establishments in the country, irrespective of the law under which they are formed. It is mandatory to grant leave on the above-listed days. However, if an organization needs to function on these days due to certain reasons, they must obtain prior approval from the concerned authority. Employees working on these days are entitled to double wages, and some states allow for compensatory leave to be claimed. Failure to obtain approval in advance may result in penalties imposed on the organization by the government.

Do not be misled by incorrect information suggesting that no company follows these rules in India. Individuals with no experience might propagate such fallacies. These acts and laws are still enforced, and audits of rosters are conducted in India annually to ensure compliance.