nizam@rfcl
Dear Sir/ma'am,
very good afternoon,
while searching my quarry related to statutory compliance for labour, we came to know about this group. after study about question and answer, it looks very good.
I willing to know about the govt rules for holiday declared on sunday.
As usual, i have filled my all labour ESI, PF, gratuity & payment of worker for the month of april 2024 as per previous declared holiday list. But while scrutiny it came in knowledge that telangana govt were declared holiday on 14.4.2024. and instructing me to pay the worker for holiday and fill ESI, PF, and gratuity.
Is this mandatory to pay the worker for holiday declared on sunday to labour whereas no labour came for works.
please share circular for supporting.
Thanks.

From India, undefined
Madhu.T.K
4240

The basic difference between a worker employed and a worker in service will apply in such scenarios. There are two things, a worker may be employed either on monthly wages or daily wages. It may be a fixed amount for the month or variable depending upon the number of days in the month. In the case of fixed wages per month it will be same for all the month, let it be January, February or April. In the case of monthly wages based upon the calendar days in the month, it will change depending on the days in the month. In the case of fixed monthly wages weekly off day will automatically be counted as paid day. At the same time if the wages is calculated per day, wages will accrue only for the days the worker works or is employed.

The Minimum Wages Act prescribes that daily rate of wages should be arrived at by dividing the monthly wages by 26. The purpose of this calculation is to ensure that payment for 4 weekly off days are included in the daily rate of wages. Therefore, there is no need to pay any wages for the weekly off day on which the worker is not employed.

However, in special circumstances the government will instruct the employer to give paid holidays to the workers. Suppose General Election day is declared as holiday by the government. This is to ensure that every employee will participate in the lection and caste his vote. He should not say that he had work, and abstaining from the work would make him lose wages for the day. Similar is the case with closure declared due to pandemic situation. When the government declared lock down there was a direction that no worker should lose their wages. Had that direction was not present, after a few days everyone will come out of his house in search of job, and the very purpose of the lock down would be defeated. Though many employers approached the Court, and the Court had also said that the employers are not under any statutory obligations to pay wages for the days the workers did not work, in principle they are liable to pay wages.

Now in the case of workers hired on daily basis there is no employee employer relationship which will extend beyond the day of employment. He is hired to work for a day, and as soon as the work is over or when he completes 8 hours work he is paid his wages. In such situation he is not 'employed' on Sundays when the company is not working. A worker not employed will not be in 'service' also. Then there is no need to pay wages for the day declared by the government as holiday in addition to the holidays declared by the organisation following the Industrial Establishment National and Festival Holidays Act of the state.

In the case of employees who are hired for a month but payment is calculated on the basis of the number of calendar days present for work, there will exist an employee employer relationship throughout the month. That is, suppose that Sunday is weekly off day, and the day is unpaid. But without any request from the worker or without any direction from the employer he can come and work on Monday also. This is because the employee employer relationship did not end on Saturday but was available even on Sunday. Simply, he is in the 'service' of the employer even though he is not employed on holidays. In such scenarios, if the government has declared holiday on Sunday, the worker is entitled to get wages.

If wages is paid, you should pay ESI and PF for that wages.

From India, Kannur
saswatabanerjee
2392

If you have found such a circular, you should share it as attachment so people can better understand what you mean.

Basically it says that you must give a holiday and can not deduct salary for that day. If it was a weekly off and you are not deducting salary for it, then you are still in compliance with the circular

From India, Mumbai
loginmiraclelogistics
1073

I presume your establishment is covered under this Act.
Extract of relevant provisions from the Telangana Shops and Establishments Act, 1988 (Act No. 20 of 1988).
" 12. Closing of shops and grant of holidays. - (1) Every shop, whether with or without employees, shall remain closed on every Sunday which shall be a holiday for every employee in the shop:
Provided that the Chief Inspector may, by notification, specify in respect of any shop or class of shops or in respect of shops or class of shops in any area any day in the week instead of Sunday on which day such shop or class of shops shall remain closed. (2) (a) The Chief Inspector may, by notification, require in respect of any specified class of shops that they shall in addition to the weekly holiday mentioned in sub-section (1), be closed for one half day in a week, as may be fixed by the Government; (b) Every employee in any shop to which a notification under clause (a) applies, shall be allowed in each week an additional holiday of one half day fixed for the closing of the shop under clause (a). (3) The Chief Inspector may, for the purposes of subsection (2), fix different hours for different classes of shops or for different areas or for different times of the year. (4) The weekly day on which a shop is closed in pursuance of a requirement under sub-section (2) shall be specified by the employer in a notice prominently exhibited in a conspicuous place in the shop. (5) It shall not be lawful for the employer to call an employee at or for the employee to go to his shop or any place for any work in connection with the business of his shop on any day or part of the day on which it has remained closed. (6) No deduction shall be made from the wages of any employee in a shop on account of any day or part of a day on which it has remained closed; and if such employee is employed on the basis that he would not ordinarily receive wages for such day or part of a day he shall none the less be paid for such day or part of a day the wages he would have drawn had the shop not remained closed, or had the holiday not been allowed, on that day or part of a day."
Even if covered under different acts say, Factories act etc. the provisions applicable there under also more or less shall remain as above. It's ok if holiday is declared. Where's the question of paying anybody 'holiday wages' if no one is deployed during that declared holiday? I think the question does not arise.

From India, Bangalore
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