Transitioning to Tamil Nadu Shops Act: Should We Include May Day in Our Holiday List?

Transition to the Tamil Nadu Shops and Establishment Act

Factory and manufacturing activity have been closed. We are now coming under the purview of the Tamil Nadu Shops and Establishment Act. The list of holidays for 2021 is currently under preparation. The question arises whether May Day has to be included in the list, considering we no longer have workmen in our company.

Dear Mr. Bharath Kumar, you are required to declare a paid holiday for May Day. Shops and establishments must announce a paid holiday for May Day. Thank you.

First and foremost, any statutory national or festival holiday specified is only a holiday for the employees and not compulsory for the establishment. Under the Tamil Nadu Industrial Establishments (National and Festival Holidays) Act, 1958, which is applicable to all shops and establishments under the TNSE Act, 1947, May First of every year is a national holiday on account of May Day. Therefore, you have to grant a holiday to your employees on that day or adopt any of the alternative arrangements specified in the Act.

In case of no employees, such a question doesn't arise at all; the employer is at liberty to enjoy the holiday himself at home or anywhere as he desires or keep the shop or establishment open for its business.