Background
The Telangana Factories and Establishments (National, Festival and Other Holidays) Act, 1974, was enacted to regulate the grant of national, festival, and other holidays to employees working in factories and establishments across the state. The Act extends to the entire state of Telangana and came into force on a date notified by the Government. Its primary objective is to ensure that workers are granted adequate rest days, fair wages for holidays, and proper compliance by employers through registers, notifications, and inspections.
Applicability
The Act applies to all factories and establishments within the state of Telangana. 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
Compliance requirement under the Rules in accordance with the Act
The Joint Commissioner of Labour, may in their respective jurisdiction notify the five festival holidays other than the 26th January, the 15th August and the 2nd October, each of one whole day in each calendar year, in consultation with the organizations of employers and employees. Provided that if a majority of employees or a union of employees in any factory or establishment desires to have 1st May as one of five holidays aforesaid in that factory or establishment, the employees, or the Union of employees of the factory or establishment shall represent their/its desire in writing to the Joint Commissioner of Labour of the area before the end of November of each year.
The Joint Commissioner of Labour shall consider the aforesaid representation and shall notify the five holidays by 10th December of each year.
Every employer shall send to the Inspector having jurisdiction over the area in which the factory or establishment is situated a statement showing the holidays allowed in each calendar year in Form 1 by registered post so as to reach the Inspector before commencement of each year in which the holidays are to be allowed and display in the premises of such factory or establishment, a legible copy of such statement.
Every employee shall be paid wages for each of the holidays allowed to him under section 3 except those who has not completed 30 days within a continuous period of 90 days immediately preceding that holiday or who is on leave with wages during any period including any such holiday.
An employee may be asked for work on a holiday if a notice has been served upon him 24 hours before the holiday in Form II in the manner prescribed in Rule 5 and a copy of such Notice is sent to the Inspector having jurisdiction over the area in which the factory or establishment is situated. A copy of such Notice to be displayed in the factory or establishment.
Where an employee works on a holiday, he shall be entitled to twice the wages or wages for the day and to avail himself of a substituted holiday with wages on one of the three days immediately before or after the day on which he so works.
Provided that an employee who is paid wages by the day or at piece rates shall be entitled to be paid wages for any holiday allowed under section 3 only at a rate equivalent to the daily average of his wages to be calculated in the prescribed manner
Every employer shall maintain a register in Form III and it shall be produced whenever it is required by the Inspector having jurisdiction over the area. No separate register is required to be maintained if the Inspector is satisfied that the particulars required are contained in any other register maintained by the employer.
Every employer shall maintain a visit book in which the Inspector visiting the factory/establishment may record his remarks regarding any defects that may come to light at the time of his inspection and shall produce it whenever required to do so by the Inspector. Provided that no separate visit book need be maintained where the employer maintains such a book with reference to the Telangana Shops and Establishments Act, 1966 or the Factories Act, 1948.
The register and notice required to be maintained and exhibited under these Rules shall be in English and in the local language.
7.Time limit for maintenance of Register and records:-
The register and records relating to a calendar year shall be preserved for a period of subsequent two years.
Penalties & Punishments
Any employer who contravenes any of the provisions of section 3 or section 5 shall be punished with fine which, for the first offence, may extend to one hundred and fifty rupees and for a second and subsequent offences may extend to seven hundred and fifty rupees. Whoever wilfully obstructs an Inspector in the exercise of any power conferred on him by or under this Act, or fails to produce on demand in writing by an Inspector any register, record or notice in his custody which may be required to be kept in pursuance of this Act, or of any rule made thereunder, shall be punished with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees or with both. A contravention of Rule 4 or Rule 5(2) or Rule 6 by the employer shall be punishable with fine which may extend to fifty rupees.
Implications
The Act plays a vital role in protecting employee rights by ensuring paid holidays and safeguarding workers from exploitation during festive or national events. For employers, it creates binding obligations to maintain transparency through records, advance notifications, and fair compensation for holiday work. Non-compliance not only attracts penalties but also risks labour disputes, reputational damage, and inspection-related sanctions.
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