National Holiday Work Dilemma: How Should Companies Handle Employee Compensation and Compliance?

Ms.Nagpal
Hi,

Can someone please help with what should be done if employees have to work on a national holiday?

1. Does the company have to submit any form to ensure no issues in opening the office?
2. Can the company give compensatory time off instead of double wages?
3. Are there any other formalities that the company has to follow to keep the office open?

Thanks in advance for your replies.
umakanthan53
You've just mentioned the constitution of your establishment and left its type to others' guess. Anyway, since you are in Tamil Nadu and the State has special legislation for the purpose of granting national and festival holidays to employees of industrial establishments situated in the State, I presume that yours is a factory, shop, establishment, plantation, or any other specially notified establishment like Beedi and Cigar Manufacturing.

Holiday Requirements Under TN Industrial Establishments Act

Coming to your queries, Section 3 of the TN Industrial Establishments (National and Festival Holidays) Act, 1958 stipulates the grant of a holiday of a whole day on the 26th January, the 1st May, the 15th August, and the 2nd October and 5 other holidays for such festivals in each calendar year. The 5 Festival Holidays are to be specified by the Inspector in consultation with the employer and the employees of the industrial establishment.

You have to bear in mind that these 9 holidays are not connected with the opening of the establishment but only with the grant of holidays to its employees. Simply put, on these 9 days the employees should be (a) allowed a holiday or (b) can be required to work with double wages or a compensatory holiday within 3 days either preceding or succeeding the day of the holiday. [Sec.5(2)]

Employer's Rights and Employee's Options

Requiring the employee to work on such a holiday is the right of the employer subject to service of a notice in this regard to the employee and the Inspector 24 hours prior to the holiday and exhibition of the copy of such notice in the establishment on the holiday.

Similarly, it is the discretion of the employee to choose either of the options of double wages or a compensatory holiday.

For further details, better go through the TNIE (N&FH) Act, 1958, and the Rules, 1959.

Regards
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