Background
The Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963 was enacted to regulate the grant of national and festival holidays to employees in industrial establishments within Karnataka. Before this legislation, there was no uniform system mandating paid national and festival holidays for workers. The Act ensures employees receive statutory holidays on key national days and selected festival days, thereby safeguarding their right to rest, cultural participation, and civic duties such as voting.
Applicability
The Act applies to all industrial establishments in the State of Karnataka, it covers:
Compliance requirement under the Act in accordance with the Karnataka Industrial Establishments (National and Festival Holidays) Rules 1964
Every employee is entitled annually to holidays on 26th January, 15th August, and 2nd October, along with five other full-day festival holidays chosen by the employer from the Schedule of festivals in consultation with the trade unions or, if none exist, with the employees or their representatives. For industrial establishments not owned or controlled by the Government of India, the number of such holidays is seven, which must include May 1st and November 1st. The employer must prepare a tentative list of holidays, share it with employees or unions, and invite objections within 15 days. If no objections are raised or if agreement is reached, the final list shall be displayed. In case of disagreement, the matter shall be referred to the jurisdictional Inspector, whose decision shall be final.
Every employee (except those in industrial establishments owned or controlled by the Central Government) whose name is included in the electoral roll of the concerned constituency must be granted a paid holiday on polling day during general elections, by-elections, or casual vacancy elections to the House of the People (Lok Sabha) or the State Legislative Assembly, as per the Representation of the People Act, 1951.
Every employer must submit to the Inspector having jurisdiction and display on the workplace notice board, in Kannada and English, a statement showing the holidays granted under Section 3 for each calendar year. This must be done on or before 31st December every year.
Every employer shall display at the workplace, in Kannada and English, the statement of holidays submitted to the Inspector for the calendar year under Section 3. This ensures transparency for employees.
Employees are entitled to wages for holidays under Sections 3 and 3A. If an employee works on such a holiday, they may choose either double wages or regular wages along with a paid substitute holiday. For daily or piece-rate workers, wages are based on average daily earnings. However, entitlement to wages for festival holidays (other than 26th January, 15th August, 2nd October, and polling day holidays) requires that the employee has worked at least 30 days in the preceding 90 days, including weekly offs and authorized leave.
Penalty & Punishment
Under Section 8: Any employer who contravenes any of the provisions of section 3 or section 3A or section 5 shall be punishable with fine which, for the first offence may extend to [one hundred and twenty-five rupees and for a second and subsequent offences may extend to two hundred and fifty rupees.
Under Rule 13: Any person who contravenes the provisions of these rules shall be punishable with fine which may extend to fifty rupees. “
Conclusion
The Act provides a statutory framework to ensure that workers in Karnataka receive adequate rest and recognition of national and cultural occasions. By mandating consultation with trade unions or employees for selecting festival holidays and requiring transparency through display of holiday lists, the Act promotes participative compliance. The wage protection clause ensures employees are compensated fairly if required to work on holidays. Overall, the Act balances the operational requirements of industrial establishments with the social and constitutional rights of workers.
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