Hello CiteHR Family,

I have a question regarding Labor Day. Is it mandatory to close the company's operations on May 1, 2023, or do we have any exceptions to run the operations?

Thank you in advance.

From India, Pune
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Almost all states have separate legislation to regulate holidays in factories, plantations, shops, and commercial establishments. In some states' rules, May 1st is not a mandatory national holiday, whereas in many states, May 1st is a national holiday. However, in Maharashtra, I don't find any separate enactment for this other than the new Maharashtra Shops and Commercial Establishment Act of 2017, which provides for holidays to be observed in commercial establishments. In this Act, May 1st is considered a National Holiday, similar to 26th January, 15th August, and 2nd October. I would like to confirm whether this Act also applies to factories in Maharashtra.
From India, Kannur
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    (Fact Checked)-The user's reply is accurate. Thank you for sharing your knowledge! (1 Acknowledge point)
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  • Dear K-Pandarinath,

    There's no rule or law to declare a holiday. If you have mentioned it on the holiday calendar for the year 2023 (LIST OF PAID HOLIDAYS FOR THE YEAR-2023), then you can consider it. It's advisable to discuss this with your top management.

    You can consider declaring a holiday on Labour Day, as most companies are non-functional on that day. Additionally, you can also celebrate Labour Day within your unit.


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    I differ from Alok. There are separate Acts to regulate holidays, such as the Kerala Industrial Establishment (National and Festival Holidays) Act, the Tamil Nadu Industrial Establishment (National and Festival Holidays) Act, and the Karnataka Industrial Establishment (National and Festival Holidays) Act. The number of holidays under each Act differs from state to state. For example, in Kerala, there are 4 National Holidays and nine festival holidays, in Karnataka there are 5 national holidays (with November 1st being the state formation day as a national holiday) and 5 festival holidays, and in Tamil Nadu, there are 4 national holidays and 5 festival holidays, among others. Each state has enacted its own Acts to regulate the employment of workers on holidays.
    From India, Kannur
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    (Fact Checked)-The user's reply is correct, highlighting the existence of separate Acts regulating holidays in different states like Kerala, Tamil Nadu, and Karnataka. These Acts specify the number of national and festival holidays, varying by state. (1 Acknowledge point)
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  • Dear Madhu TK Sir, I agree with you because Rules and Regulations may be vary from state to state and it is totally depend on state rules.

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    There are only 3 national holidays in India:

    1. 26 January
    2. 15 August
    3. 2 October

    National holidays refer to the days that are celebrated nationwide on the same day. These three days are celebrated throughout the nation simultaneously. The rest are festival holidays, which vary depending on the locality, area, and religion.

    From India, Rudarpur
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    But under many states' Acts pertaining to holidays, May 1st is a mandatory national holiday. Mr. Gautam should first go through the Acts before commenting so authoritatively that there are only three national holidays. Also, please refer to my previous comments.
    From India, Kannur
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    KK!HR
    1593

    May 1 is Maharashtra Day, as the state was created on this day in 1960. Every year, the Government of Maharashtra issues a notification declaring May 1 to be a public holiday to be celebrated as Maharashtra Day. Therefore, it has to be a paid holiday for employees. If any person is employed on that day due to work exigencies, then that person has to be compensated as per the law in this regard.
    From India, Mumbai
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    (Fact Checked)-The user's reply is correct. They accurately mentioned that May 1 is Maharashtra Day, a public holiday in Maharashtra. Employees are entitled to a paid holiday, and those working should be compensated according to the law. (1 Acknowledge point)
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  • Dear Madhu Sir,

    Under many states' Acts pertaining to holidays, May 1st is a mandatory national holiday. I agree with the mandatory holiday but do not agree for it to be a national holiday. I request you to kindly share with me the state acts where it has been declared a mandatory national holiday because in many states, it is declared as Labour Day.

    From India, Rudarpur
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    You can take it from the websites. Only a very few states have not declared it as a national holiday, but all other states have included May 1st, being International Labour Day, as a national holiday. Please see one by one and then come back.
    From India, Kannur
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    Good morning.

    In Maharashtra state, 1st May is treated as a compulsory holiday as Maharashtra Day/Labour Day. However, considering the business requirements to run operations, management can ask required co-workers to continue the shift as per routine. In lieu of the same, management is liable to pay the benefits for working on a paid holiday (double pay & compensatory off) as per the rules applicable to your establishment.

    Hope this helps you.

    From India, Mumbai
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    The original post is whether 1st May should be mandatory to close the factory operation or not. There are factories which have continuous processes - Steel Plants, etc., where operations are carried out on days like 26th January and 15th August. If the factory in question is a continuous process industry, it can remain open on 1st May. Otherwise, as per state rules, laws, etc., it may need to be closed.

    S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 USD HR Solutions – To Strive towards excellence with effort and integrity

    From India, New Delhi
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    (Fact Checked)-[The user's reply is accurate. Continuous process industries like steel plants can operate on Labour Day if necessary, based on state rules.] (1 Acknowledge point)
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  • In Maharashtra, the mandatory holiday on 1st May is primarily because it happens to be Maharashtra Day, the day on which Maharashtra as well as Gujarat had been constituted. The day holds much emotional significance for Maharashtrians.

    However, what is the context for this query?

    From India, Kochi
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    (Fact Checked)-The user reply is correct. (1 Acknowledge point)
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  • Dear Pandarinath,

    No doubt, national and festival holidays are mandated in most of the state Acts and rules, including May Day, which we say is a compulsory holiday.

    My opinion and status are that the employer need not lock or stop operations on account of this. If it is a continuous process, it has to run.

    Furthermore, all these statutes state that if employees are made to work on these specified holidays, the mode of payment or a substitute holiday should be provided. This is the beauty of the law.

    However, if you have a union or employees' association, inform them and let them know the delivery schedule and circumstances. One can continue the process.

    Ram K Navaratna
    HR Resonance

    From India, Bangalore
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  • CA
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    (Fact Checked)-The mention about employers not being required to halt operations on Labor Day is correct. However, it's crucial to comply with applicable laws on payment or substitute holidays if employees work on such days. (1 Acknowledge point)
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