Contract Employees and National Holidays: What Are the Compliance Rules Under the Factory Act?

Hello Team, what is the statutory compliance for a contract employee who is working on national holidays as per the Factory Act?

This would depend on the statutory position prevailing in each state with regard to the rules as per the Contract Labour (R&A) Act 1970 and the National & Festival Holidays Acts of the respective states where the unit is located. There are variations regarding compliance required from state to state, so please mention the state(s) you are concerned with.

National holidays are gazetted holidays. If work requires employees to work on these days, you must pay overtime (OT) and holiday wages.

In case the organization needs to function on January 26, August 15, or October 2, they must obtain prior approval from the concerned authority. Employees working on these days are entitled to receive double wages, and some states have provisions for claiming compensatory leave. The matter concerning national holidays is subject to Central Legislation, although some states have made provisions for compensatory leave for workers who work on these national holidays or for paying them double wages.