Dear All,

What are the Holiday (National/Festival) rules for workers in a manufacturing industry? Management declares 10 days as National/Festival Holidays at the start of the year. If October 2nd, 2012, is declared a holiday and a worker is absent on October 1st, 2012, and October 3rd, 2012, the days preceding and succeeding the declared holiday, will the worker be entitled to the wage for October 2nd, 2012, the declared holiday?

Kindly enlighten me with the rules and regulations pertaining to holidays (National/Festival).

A. BAKSHI

From India, Chennai
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Dear Bakshi,

Have you consulted the Tamil Nadu Industrial Establishments (National & Festival Holidays) Act, 1958, which provides for National and other holidays and also stipulates that national holidays should be paid holidays for all workers regardless of the duration of leave taken?

It is unnecessary for you or the management policy to complicate the issue by discussing preceding and succeeding days. This practice is an attempt to circumvent the provisions of the law. Despite the law being comprehensive to cover every conceivable situation, lawmakers cannot anticipate all the tactics that lawbreakers may employ to exploit and deprive others of their entitlements.

If your company believes in upholding the spirit of the law and principles of natural justice, you should consider the declared holiday as a paid holiday, irrespective of whether it falls before, after, or amidst any working day, holiday, closed holiday, or weekly off. This approach is crucial to prevent individuals from taking undue advantage, and it sheds light on why our laws are lengthy and repetitive — to avoid such situations.

Please do not hesitate to reach out if you need further clarification. I acknowledge the challenges and dilemmas faced by HR professionals, especially those who are new to their careers.

Warm regards.

From India, Delhi
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Dear Human Resource Practices and Sunita Meena,

Could you come up with the justifications on what you have to say? It is very clear that the employee was on leave for 3 days. The point at issue is: "Will the worker be entitled to the wage of 2nd Oct, 12, the declared holiday?"

Could you please explain or justify with citations why a worker should be deprived of wages for being on leave on 2nd Oct, which is a declared national holiday (meaning it is a paid holiday)? I find it interesting that HR people are acting less like HR and more like Finance & Accounts - instead of ensuring fairness (if not being liberal) in employee matters, they are more interested in curtailing and reducing employee benefits (being "Conservative" is an accepted Accounting principle).

Warm regards.

From India, Delhi
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Please note that Mr. Bakshi has mentioned Absent not leave and its unauthorized and if person is absent from long and national holiday is falling in between I think he is not entitle to take it as a Paid Absent.
And You would be surprised to note that more than 25% of the salaries paid to employees are towards their leave! How many businesses have factored this in their costs? and I think HR is for the company and for Employee as well and the workers who are not following/ adhere the leave policy of the company HR should take a call against them and as far as HR point of Concern.
By the way, please note that the opinion contained in the reply is merely “advisory” and, for one reason or anothe because,Holidays and Leave policies (Paid Leave/ holiday) of establishments are generally regulated by the nature of business, project deadlines, Global HR policy, and the Geographical area the companies cater to......You can still correct me if I am Wrong.

From India, Indore
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Dear Suneeta

Thanks for your efforts and time to respond promptly. Such interactions with a wide cross-section of HR professionals, I believe, is very useful for professional developments.

I gather from your response that, as such there is no statute or rule that denies the lawful payment of wages during declared paid holidays. We, as HR professionals have to ensure it that if an employee is ON ROLL and (for whatever reason - genuine or otherwise) he is not able to ATTEND DUTIES (which he can validate later with proper documentation); he should not be deprived of his RIGHTFUL CLAIM TO WAGES.

Coming to your post, my para-wise reply is as below :

#1 : Yes. it is mentioned as absent and not leave.

Unless an employee has notified earlier and taken prior approval; this is always the case. Its only on joining back after LEAVE OF ABSENCE, that an employee puts up his application (ex-post-facto) for leave; wherein it is also mentioned thee kind of leave and duration; which is then regularized upon approval by HOD or competent Authority.

Simply proceeding on leave (with or without approval - depending on the exigencies) does not entail that the employee forgoes his rightful claim on a paid holiday.

Even if he has no leave credit in his account; he is eligible for 1 day leave with Pay; if we are to act lawful, just and fair; else you can continue to ... "think he is not entitle to take it as a Paid Absent."

The problem is - there is no one to challenge the validity of action of HR. (The management or seniors will not, as it suits them; and there are no trade union to take up the issue on behalf of the workman.)

#2 : Yes; I would be surprised to know, as you say - "25% of the salaries paid to employees are towards their leave! "

I think your data is not correct.

Can you substantiate it with fact and figures ????

Do you understand what 25% means?? It means that an employee gets 1 day leave for every 3 days work !!! In which organization it is possible ?? Not even in government service.

It also means that if 25% is paid in leaves then what about the following components :

Welfare, canteen, medical, Transport

HRA

Salary

LTC

CPF, Gratuity, Insurance

etc.

The figure given by you is an exaggerations; unless you can furnish some verifiable data.

#3 : I appreciate you for indicating that your opinion was "ädvisory" in nature.

Apart from the FACTORS given by you which regulate the leave; the most important factor left out by you is the Government Legislations, Acts which are applicable and which have to followed compulsorily; and any violation is punishable under the Law.

To conclude; I would like to add that my intention here was to engage our members in meaningful interaction; encourage their Spirit of Enquiry and to provide more learning opportunities beyond just merely ANSWERING A SPECIFIC QUERY and I thank you for your willing participation.

Warm regards.

From India, Delhi
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A classic judgment is attached herewith from the Madras High Court in 1979 in the case of Madura Coats. In this case, employees were being denied wages for declared national holidays because during that period, workers were not attending duties due to a strike.

Warm regards.

From India, Delhi
Attached Files (Download Requires Membership)
File Type: doc Madras High Court1979MaduraCoats.doc (46.0 KB, 165 views)

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The point of leave on 2nd of Oct is not an issue. It has to be paid to him whether he is on leave one day prior and one day after the national holiday. Now the question is whether he has applied for SICK LEAVE or EARNED LEAVE (PRIVILEGE LEAVE) for those days. He cannot be entitled to CASUAL LEAVE for those two days (one before and one after the National Holiday).
From India, Madras
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Holiday and leave policies differ from one establishment to another and vary from one state to another. A holiday that falls in between two leaves shall be treated differently. A holiday that falls between paid leave (PL/EL) or sick leave (SL) or loss of pay will be counted as a holiday and leave. On the other hand, it will be treated as leave, not as a holiday.

Please let me know if you need any further assistance or clarification on this matter.

From India, Bangalore
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After going through the discussions, I am surprised that the very contents of the query are being ignored. In general, if a workman/employee keeps himself/herself absent (I repeat) absent without information/prior approval, can the absence be counted as leave legally without foreseeing the repercussions?

As far as inclusion or exclusion of any declared holiday falling in between the authorized leave is concerned, it is not uniform overall. Some include while others exclude this, as governed by their related policies/SOP.

Regards,
(J.S. Nadar)

From India, Delhi
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Dear Mr. RajKumar,

Following is the list of the holidays and leave availing by the Employees and It may vary few dates depending on the customs & rituals followed:-

National Holidays: These holidays are declared compulsorily, and the establishments do not have flexibility in timing them.

26th January, 1st May, 15th August, 2nd October, and 1st November.

Festival Holidays: Five festival holidays in each calendar year have to be declared in addition to the National Holidays.

General Elections: In case of general elections to the Lok Sabha and Vidhana Sabha and in case of any by-election, a holiday needs to be declared to all employees on polling day.

Weekly Holidays: Every establishment is required to remain closed for at least one day of the week. The employer shall fix such date at the beginning of the year.

Annual leave with wages: Every employee in an establishment is entitled to leave with wages and is calculated as follows:-

Earned Leave: One day for every twenty days worked performed by him. This works out to about 1.5 Days a month and 18 Days per annum.

Contingency/Sick/Medical Leave: Every employee is also entitled to leave with wages for a period not exceeding twelve days, on the ground of any sickness incurred or accident sustained by him or for any other reasonable cause.

Carry forward of Leave balances: If an employee does not in any one calendar year take the whole of the leave allowed to him as above, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year.

The total number of days of leave that may be carried forward to a succeeding year should not exceed thirty days. The excess leave will either expire or will have to be paid to the Employee as Leave Encashment.

Other leaves include Maternity leave, ESI leave, etc. The national, Festival, and Weekly holidays declared by the establishment need to be prominently displayed at the place of business and should be intimated to the Labour Department, every Calendar year.

The table below summarizes the Minimum Leave/Holidays requirements for an establishment:

Sl No. Type of Leave Number of Days

1 National Holidays 5

2 Festival Holidays 5

3 Weekly Holidays 52

4 Earned Leave 18

5 Contingency Leave 12

Total 92

Total number of days in a year-366 days

Leaves - 92*100/366 = 25%

The total of 92 days mentioned in the above table may seem quite a lot, but in actual practice, if one were to include holidays that an employer is forced to declare because of the frequent bandhs, demise of prominent personalities, etc., we are left wondering whether we work at all!

This is according to me whatever I read and understood, and my seniors still can correct me If I am wrong because I am here to share and gain.

I believe doing some Mistakes are always forgivable if one has the courage to admit them...

From India, Indore
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