RECOMMEDATION LETTER TO EASE THE PROPOSAL OF SPECIFICATION OF FESTIVAL HOLIDAYS FOR INDUSTRIAL ESTABLISHMENTS IN TAMIL NADU

RECOMMENDATION LETTER TO EASE THE PROPOSAL OF SPECIFICATION OF FESTIVAL HOLIDAYS FOR INDUSTRIAL ESTABLISHMENTS IN TAMIL NADU

        Recommendations to Ease the Process of Grant of Festival Holidays for Industrial Establishments in Tamil Nadu.

1. Aparajitha, a leading compliance service provider in India, has presented certain recommendations in order to ease the process relating to the festival holidays required to be granted to employees of Industrial Establishments operating in the State of Tamil Nadu. This requirement is mandated under The Tamil Nadu Industrial Establishments [(National, Festival and Special Holidays)] Act, 1958 (“Act”) and The Tamil Nadu Industrial Establishments (National and Festival Holidays) Rules, 1959 (“Rules”). We are of the considered opinion that these recommendations may assist the Government of Tamil Nadu in further enhancing the Ease of Doing Business within the State.
2. Law dictates that, in a calendar year, every employee of an Industrial Establishment is entitled for four national holidays and five other festival holidays. While the list of National Holidays is fixed, the Employers have to suggest and get approved the five festival holidays in a calendar year from the Authority concerned. Therefore, the employer or establishment owner, in accordance to the above, must send a proposal in Form I to the Inspector (appointed under this Act). Thereafter, the said Inspector on considering the proposal along with the objection and suggestions, if any, from the Employees or the Trade Union, as the case maybe, will approve the festival holidays specified in the proposal and communicate it to the employer in the manner prescribed. Upon the receipt of such communication, the employer should exhibit the approved list of holidays in the establishment premises.
3. The Tamil Nadu Labour Department had implemented online process for specification and approval of the said five festival holidays with effect from August 16, 2020 vide labour portal https://labour.tn.gov.in/services/users/login. However, in practice, online applications are not being entertained, and establishment owners or their representatives are required to physically visit the authority for obtaining approval.
4. Though the Government has implemented online mode, the same needs to be practiced in its full efficiency. Further, there is also a need for a fixed timeline to be prescribed and strictly adhered to for granting such approvals.
5. In light of such processes being followed in Tamil Nadu, it is pertinent to bring to your knowledge the processes that are being followed in other states. In the State of Bihar and Uttar Pradesh, the employer of an Industrial establishment is only required to display the notice allowing his employee to choose their festival holidays at the beginning of every calendar year and ought to maintain only a record of it. No communication nor approval is necessitated. In similar fashion, even the states of Andhra Pradesh and Telangana Government issues notification enlisting the number of festival holidays in the respective State. The establishment can select, display and simply communicate the selected holidays to the authorities. By letting go of the approval process, the compliance burden on the establishment may be relaxed. In the alternative, fixed timelines may be strictly implemented for such approvals, ensuring that the compliance does not become a burden on the establishment owner.
6. In light of the above, Aparajitha, through its years of experience at the ground level, has submitted certain recommendations to the Government of Tamil Nadu and the following suggestions were made:

• • The Government may notify a list of festival holidays, from which the business or establishment owner, with the suggestions of their employees, may determine the holidays to be declared as festival holidays for that particular establishment.
  • Upon deciding the festive holidays from the list notified by the Government, the establishment owner or employer shall display the specified festival holiday list at their premises.
  • The determination and display of festival holidays by the employer may be regarded as a form of self-certification or, in the alternative, the employer may simply communicate to the concerned Inspector or authority that the establishment is compliant with the applicable requirements.

7. The implementation of the aforesaid recommendations would promote ease of doing business within the State, improve operational efficiency for employers, and reduce the regulatory burden in real time.