National Holiday Work: What Legal Conditions Must Companies Meet?

Hi,

If an organization wants to work on a national holiday, what conditions should it satisfy? Is there any law that addresses this issue?

Under these circumstances, the National & Festival Act will apply. You need to inform your Area Factory Inspectorate in Form VA. Details of employees going to work on a national holiday and the subsequent compensatory off date should be provided to him (within either the prefix or suffix three days). Employees who work on a national holiday will be eligible for one comp-off and one-day payment or double the rate payment.

Thank you for the reply.

Is it the state act? Is there any special exemption given for people working in or under any STPI under that act or any other act?

Hi All,

I have come across a different situation where the factory has intimated the concerned authority of working on a national holiday (which was not acknowledged by the authority), and the factory has also compensated those who worked on that day with double the rate of normal wages. The issue here is that there were no deductions for social security benefits like ESI or PF, and the factory claims that they have received a waiver from the local Inspectorate of Factories.

Can anyone explain to me:
1. At what rate the worked day has to be compensated?
2. Should there have been ESI/PF deductions?
3. Is there any penalty to be paid by the factory for working on such days?

Thanks & Regards,
Saravana Rajan.