Key Compliances under Haryana: Punjab Industrial Establishment (National & Festival Holidays & Casual & Sick Leave) Act, 1965

Background

The Haryana: Punjab Industrial Establishment (National & Festival Holidays & Casual & Sick Leave) Act, 1965, was enacted to regulate the grant of national holidays, festival holidays, and casual/sick leave to workers in industrial establishments. It ensures uniform entitlements for employees, prevents exploitation, and balances the operational needs of employers with the welfare of workers. The Act also mandates the maintenance of proper records to ensure transparency and accountability.

Applicability

The Act applies to all factories and establishments within the state of Haryana & Punjab. It governs the declaration of national and festival holidays, wages to be paid for such holidays, conditions under which employees may be asked to work on holidays, and the corresponding employer obligations to maintain proper records and submit statutory statements to labour authorities

Key Compliances under the Haryana: Punjab Industrial Establishment (National & Festival Holidays & Casual & Sick Leave) Act, 1965

  1. Grant of National and Festival Holidays (Section 3)
    • Every worker is entitled annually to 3 national holidays (26 January, 15 August, 2 October) and 5 festival holidays from the prescribed Schedule.
    • Workers may, through representation, opt for two half-day holidays in lieu of certain festival holidays, subject to settlement with the employer.
  2. Casual and Sick Leave (Section 4)
    • Every worker must be granted 7 days of casual leave and 14 days of sick leave each calendar year.
    • Leave cannot necessarily be linked with other leave types, unless permitted under other laws or agreements.
  3. Wages for Holidays and Leave (Section 5)
    • Workers must be paid average daily wages for all national/festival holidays and casual/sick leave.
    • If a worker works on a holiday, they may choose either:
      • Double wages, or
      • Normal wages + a substituted holiday within 90 days.
    • Wages are calculated on the average of the last three months’ earnings, excluding overtime.
  4. Maintenance of Records (Section 6)
    • Employers must maintain a proper account of all festival holidays, casual leave, and sick leave of every worker.
    • Workers should have access to their leave and holiday records.

Penalties & Punishments

  • Any employer who contravenes any of the provisions of Section 3, 4, 5 & 6 relating to National Festival Holidays and leave to be kept shall be punishable for the first time offence with fine which may extend to Rs 1000 but not less than Rs 200 and for a second or subsequent offence with fine which may extend to Rs 4000 but not less than Rs 200.
  • Whoever wilfully obstructs an inspector shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs 5000 but not less than Rs. 2000 or with both

Conclusion

The Haryana: Punjab Industrial Establishment (National & Festival Holidays & Casual & Sick Leave) Act, 1965, establishes a comprehensive framework to safeguard employee rights relating to holidays and leave. By providing clear entitlements to national holidays, festival holidays, and paid leave, it ensures work-life balance and fair compensation. Employers are legally obligated to maintain accurate leave records and ensure compliance to avoid penalties. The Act thus plays a crucial role in fostering industrial harmony and employee welfare in Haryana.

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