Hi Seniors,

According to the Shops & Establishments Act, if an employee works on the 15th of August, 26th of January, 2nd of October, and 1st of May, he/she will be entitled to receive double payment. I have a doubt; in my office, everyone is in the staff category, so will this rule be applicable?

Also, how do I calculate the bonus for my staff? For workers, it is 8.33%, but for staff, what is the minimum amount and calculation for the same?

Please guide.

Regards,
Snel

From India, Mumbai
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Hi Seniors,

According to the Shops & Establishment Act, if an employee works on 15th Aug, 26th Jan, 2nd Oct & 1st May, he/she will be entitled to receive double payment. I have a doubt in my office; everyone is in the staff category, so will this rule be applicable?

Also, how do I calculate the bonus for my staff? For workers, it is 8.33%, but for staff, what is the minimum amount and calculation for the same?

Please guide.

Regards,
Snel

From India, Mumbai
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Dear Snel,

No statutes or any act have any provisions not to pay if a particular category of persons is designated as staff. All workers and staff working on a holiday or weekly off, if called on duty, must be compensated under the provisions of the Shops & Establishment Act.

Furthermore, you cannot differentiate the bonus payment for staff under the provisions of the Bonus Act. The percentage of bonus payment may be a minimum of 8.33% and a maximum of 20%.

If you wish to pay staff more than workers, it would be better to pay the difference amount in the form of ex-gratia.

From India
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Shop and establishment acts are different for each state, so you need to check the rules under the act that applies to you. In general, these are national holidays. I am not sure about May 1st; mostly, it is not a holiday. In such cases, persons working on that day are entitled to be paid three times their normal salary. The employee receives their normal salary whether they are present or absent. Additionally, they receive double pay (overtime rates) for working on a national holiday.

There are no exemptions in labor laws for staff. Some shop and establishment acts exempt managers from overtime, but managers cannot exceed 5% of the total employee strength (also specified in most acts).

Regarding bonuses, there is enough information available on it. Take a look at the threads, and you will get detailed information on the same.

From India, Mumbai
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Further to my email from yesterday, I am providing below the last paragraph of the Judgment delivered by The Supreme Court in December 1980.

The question ultimately is one of fact. The liability of the management to pay wages for national and festival holidays under Section 3, read with subsection (1) of Section 5 of the Act, is subject to their right under subsection (2) of Section 5 of the Act to call upon the workmen to come and work on such holidays. That depends on whether or not the strike was illegal or unjustified.

As a result, the appeal succeeds and is allowed. The judgment of the High Court is reversed. The writ petition filed by the appellant is allowed, and the impugned notice issued by the Inspector of Factories is quashed.

K S PASUPATHI

From India, Chennai
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