Is It Fair for Our Company to Deny National Holidays? Seeking Advice on Addressing This Policy

Hi, I am a fresher working as an HR Executive in an ITES Pvt Ltd company that provides services to USA-based clients. The company's headquarters are located in Gujarat, India, and it is registered in India. The problem is that they do not allow national holidays. There are no holidays on 26th January, 15th August, 2nd October, or during Diwali. The company follows holidays as per the USA Federal holiday list, and if an employee does not show up on Indian holidays, they deduct two days' salary from the paycheck. Due to this policy, many employees leave their jobs every month.

Please let me know if they are correct in implementing this policy. If not, what could be the solution? How can I explain to the employers that this is not a right practice?

Thank you.

This is a grossly wrong policy. Under the Shops and Establishment Act, you need to give holidays on the National Holidays. Also, deducting these 2 days' salary is a violation of this act. You can go to your area labor inspector and lodge a complaint.

For more information or assistance, please feel free to reach out.

As per the Shop & Establishment Act, it is mandatory to give holidays on national holidays, and failure to do so carries a fine. In case the employee is required to work on national holidays, the employer is required to pay double the wages.