Keywords : Industrial Establishment, Wages, Holiday

STATEMENT OF OBJECTS AND REASONS
I
Act 24 of 1963.- At present there is no uniform practice in the several industrial
undertakings of the State to declare National and Festival Holidays every year. It is also likely
that some of the private industrial establishments are declaring such holidays as paid holidays
in spite of the fact that the Government issues Press Notes requesting all the industrial
undertakings of the State, to prescribe Republic Day on 26th January and Independence Day
on 15th August each year as additional paid holiday and not as substituted holidays.
As the Government of India have requested that appropriate action should be taken to
enforce the observance of National and Festival Holidays as holidays with wages and in view
of the great importance attached to the National and some other important festivals, it is
considered necessary that our State should have legislation in this behalf.
Hence this Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A, dated 5th December 1962 as
No. 244 at page. 7.)
2
II
Amending Act 1 of 1975.—Under section 3 of the Mysore Industrial Establishments
(National and Festival Holidays) Act, 1963 every employee is allowed two national holidays in
a calendar year on the 26th January and the 15th August. It is proposed, as suggested by the
National Commission on Labour, to provide for another national holiday on the 2nd October
(Mahatma Gandhi’s Birthday).
Under the proviso to sub-section (3) of section 5 of the Act, an employee will not be
entitled to be paid any wages for any of the holidays allowed, if he has nor completed period
of thirty days’ continuous service immediately preceding such holiday. This will mean
hardship in cases where an employee though he may have completed a period of thirty days
of service, may not have completed thirty days of continuous service immediately preceding
the holiday. It is therefore proposed to amend the proviso providing for the requirement of a
total period of thirty day’s service within a continuous period of ninety days immediately
preceding the holiday.
It is also proposed to provide that offences under the Act or rules shall be taken
cognisance only upon complaint and by a magistrate of the first class.
Hence this Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 14th March 1973 as No.
255 at page. 4.)
III
Amending Act 7 of 1985.—In his Budget Speech during 1982, the Chief Minister
announced Government’s intention to declare the 1st day of May as a paid holiday for
industrial workers in the State.
When the Government of India were approached for obtaining the previous instructions of
the President for amending section 3 of the Karnataka Industrial Establishments (National and
Festival Holidays) Act, 1963, they informed that they were not agreeable to the day being
declared a holiday in respect of establishments owned or controlled by the Government of
India.
It is therefore considered necessary to declare 1st day of May as a paid holiday for
industrial workers in the State of Karnataka except in respect of establishments owned or
controlled by Government of India.
Hence the Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 20th March, 1985, as
No. 166 at page. 3.)
IV
Amending Act 16 of 1986.—The power conferred by section 6 of the Karnataka Industrial
Establishments (National and Festival Holidays) Act, 1963 is, at present confined to the
appointment of Inspectors for local limits specified by the State Government. It is intended to
take power to appoint Inspectors for any given industrial establishment or class of such
establishments. Where the power so conferred is exercised, provision for cessure of
jurisdiction by the Inspectors appointed for local limits in respect of such establishments is
also required to be provided for.
It is also necessary to clear the ambiguity in section 3 and make a few consequential
amendments.
Hence the Bill.
3
(Published in Karnataka Gazette (Extraordinary) Part IV-2A, dated 3rd February, 1986 as
No. 70 at page. 4.)
V
Amending Act 28 of 1997.—On the suggestions of the Election Commission, it is
proposed to amend the Karnataka Industrial Establishments (National and Festival Holidays)
Act, 1963, to make it obligatory on the part of employers to allow paid holiday to workers
during general or bye-elections for any parliamentary or Assembly Constituency under the
Representation of Peoples Act, 1951 (Central Act 43 of 1951) to enable the employees to
exercise their franchise.
It is prosed to allow the employer and employee to choose paid holidays out of the list of
festivals specified in the schedule. Hence the Bill.
(Obtained from LAW 18 LGN 97.)


4
1
[KARNATAKA ACT]1
No. 24 OF 1963
(First published in the 1
[Karnataka Gazette]1
on the Eleventh day of July, 1963.)
THE 1
[KARNATAKA]1
INDUSTRIAL ESTABLISHMENTS (NATIONAL
AND FESTIVAL HOLIDAYS) ACT, 1963
(Received the assent of the President on the Twenty-sixth day of June, 1963.)
(As amended by Act 1 of 1975, 7 of 1985, 16 of 1986 and 28 of 1997)
An Act to provide for the grant of national and festival holidays to persons
employed in industrial establishments in the 1
[State of Karnataka]1
.
WHEREAS it is expedient to provide for the grant of national and festival holidays to
persons employed in industrial establishments in the 1
[State of Karnataka]1
;
BE it enacted by the 1
[Karnataka]1
State Legislature in the Fourteenth Year of the
Republic of India as follows:—

  1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
  2. Short title, extent and commencement.—(1) This Act may be called the 1
    [Karnataka]1
    Industrial Establishments (National and Festival Holidays) Act, 1963.
  3. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
    (2) It extends to the whole of the 1
    [State of Karnataka]1
    .
  4. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
    (3) It shall come into force on such 1
    [date]1
    as the State Government may, by
    notification, appoint.
  5. Act came into force w.e.f. 14.8.1963 by notification. Text of the notification is at the end
    of the Act
  6. Definitions.—In this Act, unless the context otherwise requires,—
    (1) “day” means a period of twenty-four hours beginning at midnight;
    (2) “employee” means,—
    (i) any person (including an apprentice) employed in any industrial
    establishment to do any skilled or unskilled, manual, supervisory, technical or clerical
    work for hire or reward, whether the terms of employment be express or implied;
    (ii) any other person employed in any industrial establishment whom the State
    Government may, by notification, declare to be an employee for the purposes of this
    Act;
    (3) “employer”, when used in relation to an industrial establishment, means a
    person who has the ultimate control over the affairs of any industrial establishment
    and where the affairs of any industrial establishment are entrusted to any other
    person (whether called a managing agent, manager, superintendent or by any other
    name) such other person;
    (4) “industrial establishment” means,—
    (i) any shop or commercial establishment as defined in clauses (e) and (u) of
    section 2 of the 1
    [Karnataka]1
    Shops and Commercial Establishments Act, 1961;
  7. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
    (ii) any factory as defined in clause (m) of section 2 of the Factories Act, 1948
    (Central Act LXIII of 1948), or any place which is deemed to be a factory under subsection (2) of section 85 of that Act;
    (iii) any plantation as defined in clause (f) of section 2 of the Plantation Labour
    Act, 1951 (Central Act LXIX of 1951);
    (iv) any other establishment which the State Government may, by notification,
    declare to be an industrial establishment for the purpose of this Act;
    5
    (5) “Inspector” means an Inspector appointed under sub-section (1) of section 6;
    (6) “notification” means a notification published in the official Gazette;
    (7) “wages” means all remuneration capable of being expressed in terms of
    money, which would, if the terms of employment, express or implied, were fulfilled,
    be payable to an employee in respect of his employment or of the work done by him
    in such employment, and includes,—
    (i) such allowances (including dearness allowance) as the employee is for the
    time being entitled to;
    (ii) the value of any house accommodation, or of supply of light, water,
    medical attendance or other amenity or of any service or of any
    concessional supply of foodgrains or other articles;
    but does not include,—
    (a) any bonus;
    (b) any contribution paid or payable by the employer to any pension fund or
    provident fund, or for the benefit of the employee under any law for the time being in
    force;
    (c) any gratuity payable on the termination of his service;
    (d) any sum paid to an employee to defray special expenses entailed on him by
    the nature of his employment;
    (e) any travelling concession.
    1
    [3. Grant of National and festival Holidays.—(1) Every employee shall be
    allowed in each calendar year, a holiday of one whole day on the 26th January, 15th
    August, 2nd October and five other holidays each of one whole day for such festivals
    as the employer may specify, from out of the list of festivals specified in the Schedule
    appended to this Act in consultation with the trade unions or in the absence of any
    trade union in consultation with the employees or their authorised representatives in
    such manner as may be prescribed:
    Provided that except in the case of Industrial establishments owned or controlled
    by the Government of India, the number of such other holidays shall be seven
    including first day of May and first day of November.
    (2) Whenever there is any disagreement between the employer and employees or
    the trade Unions concerned as to the festivals to be allowed as holidays during each
    calendar year the employer or the employees of the concerned Trade Union shall
    refer the dispute to the Inspector, having jurisdiction over the area in which the
    Industrial establishment is situated, for his decision and his decision shall be final.
    3A. Grant of Holidays on the polling day, for House of the People or to the
    State Legislative Assembly.—Notwithstanding anything contained in section 3,
    when a general election to the House of the People or to the State Legislative
    Assembly or an election to fill up any casual vacancy in the House of the People or
    the State Legislative Assembly is held under the Representation of the People Act,
    1951 (Central Act 43 of 1951), every employee (other than an employee in an
    Industrial establishment owned or controlled by the Government of India) whose
    name is included in the electoral roll of the constituency where such election is held,
    shall be allowed on the polling day, a day’s paid holiday to enable him to exercise his
    franchise.]1
  8. Section 3 and 3A substituted by Act 28 of 1997 w.e.f. 30.9.1997
    6
  9. Employer to send statement to Inspector.—Every employer shall send to the
    Inspector having jurisdiction over the area in which the industrial establishment is
    situated, and display in the premises of the industrial establishment, a statement
    showing the holidays allowed in each calendar year under section 3, in such form,
    within such time and in such manner as may be prescribed.
  10. Wages.—(1) Notwithstanding any contract to the contrary, every employee
    shall be paid wages for each of the holidays allowed to him under 1
    [section 3 or 3A]1
    .
  11. Substituted by Act 28 of 1997 w.e.f. 30.9.1997
    (2) Where an employee works on any holiday allowed under 1
    [section 3 or 3A]1
    , he
    shall, at his option, be entitled to,—
  12. Substituted by Act 28 of 1997 w.e.f. 30.9.1997
    (a) twice the wages; or
    (b) wages for such day and to avail himself of a substituted holiday with wages
    on any other day.
    (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), an
    employee who is paid wages by the day or at piece rates shall be entitled to be paid
    wages for any holidays allowed under 1
    [sections 3 and 3A]1
    ,—
  13. Substituted by Act 28 of 1997 w.e.f. 30.9.1997
    (i) only at a rate equivalent to the daily average of his wages to be calculated
    in the prescribed manner;
    (ii) where he works on any such holiday, only at twice the rate mentioned in
    clause (i), or in lieu thereof, at the rate mentioned in that clause and to avail himself
    of a substituted holiday with wages at that rate on any other day:
    2
    [Provided that no such employee shall be entitled to be paid any wages for any of
    the holidays allowed under section 3, other than the 26th January, the 15th August
    and the 1
    [2nd October and the holiday allowed under section 3A]1
    unless he has been
    in the service under the employer for a total period of thirty days within a continuous
    period of ninety days immediately preceding such holiday.]2
  14. Substituted by Act 28 of 1997 w.e.f. 30.9.1997
  15. Substituted by Act 1 of 1975 w.e.f. 23.1.1975
    Explanation.—For the purpose of this proviso, a weekly or any other holiday or
    authorised leave availed of by an employee shall be included in computing the period
    of thirty days mentioned therein.
  16. Inspectors.—(1) The State Government may, by notification, appoint such
    persons or such class of persons as it thinks fit to be Inspectors for the purposes of
    this Act for such local limits 1
    [or one or more industrial establishments or class of
    industrial establishments therein]1
    as the State Government may specify. 1
    [Where an
    Inspector is appointed for one or more industrial establishments or class of industrial
    establishments, such Inspector and none other shall have jurisdiction over such
    industrial establishment or industrial establishments or such class of industrial
    establishments.]1
  17. Inserted by Act 16 of 1986 w.e.f. 8.5.1986
    (2) Every Inspector shall be deemed to be a public servant within the meaning of
    section 21 of the Indian Penal Code (Central Act XLV of 1960).
  18. Powers of Inspectors.—Subject to any rules made by the State Government
    in this behalf, an Inspector may, within the local limits for which he is appointed 1
    [or
    7
    within which the industrial establishment or class of industrial establishments for
    which he is appointed is or are situated]1
    ,—
    (a) enter at all reasonable times and with such assistants, if any, who are
    persons in the service of the Government or of any local authority as he thinks fit to
    take with him, any place which is, or which he has reason to believe is, any industrial
    establishments 1
    [or as the case may be, the industrial establishment or one
    belonging to such class of industrial establishments for which he is appointed]1
    ;
    (b) make such an examination of the premises and of any prescribed registers,
    records and notices and take on the spot or otherwise, the evidence of such person
    as he may deem necessary for carrying out the purposes of this Act;
    (c) exercise such other powers as may be necessary for carrying out the
    purposes of this Act:
    Provided that no one shall be required under this section to answer any question
    or give any evidence tendering to incriminate himself.
  19. Penalties.—Any employer who contravenes any of the provisions of section 3 1
    [or section 3A]1
    or section 5 shall be punishable with fine which, for the first offence
    may extend to 2
    [one hundred and twenty-five rupees]2 and for a second and
    subsequent offences may extend to two hundred and fifty rupees.
  20. Inserted by Act 28 of 1997 w.e.f. 30.9.1997
  21. Substituted by Act 28 of 1997 w.e.f. 30.9.1997
  22. Penalty for obstructing Inspectors.—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 punishable with imprisonment for a term which may extend to
    three months or with fine which may extend to five hundred rupees or with both.
    1
    [9-A. Cognisance of offences.—(1) No Court shall take cognisance of any
    offence punishable under this Act or any rule made thereunder except upon a
    complaint made in writing by an Inspector.
    (2) No court inferior to that of a magistrate of the first class shall try any offence
    punishable under this Act or any rule made thereunder.]1
  23. Section 9A inserted by Act 1 of 1975 w.e.f. 23.1.1975
  24. Exemptions.—The State Government may, by notification, exempt any
    establishment or class of establishments or persons or class of persons from all or
    any of the provisions of this Act, subject to such conditions as the State Government
    may deem fit.
  25. Rights and privileges under other laws, etc., not affected.—Nothing
    contained in this Act shall affect any rights or privileges which any employee is
    entitled to, on the date on which this Act comes into force, under any other law,
    contract, custom or usage, if such rights or privileges are more favourable to him
    than those to which he would be entitled under this Act.
    1
    [11A. Power of State Government to amend the Schedule.—The State
    Government may, by notification in the Official Gazette, amend the Schedule
    appended to this Act.]1
  26. Section 11A inserted by Act 28 of 1997 w.e.f. 30.9.1997
  27. Power to make rules.—(1) The State Government may, by notification, make
    rules for the purpose of carrying into effect the provisions of this Act.
    8
    (2) In making a rule under this Act, the Government may provide that a
    contravention thereof shall be punishable with fine which may extend to 1
    [two
    hundred and fifty rupees]1
    .
  28. Substituted by Act 28 of 1997 w.e.f. 30.9.1997
  29. Rules and notifications to be laid before the State Legislature.—Every
    rule made under this Act and every notification issued under sub-section (2) of
    section 10 shall be laid as soon as may be after it is made or issued, before each
    House of the State Legislature while it is in session for a total period of thirty days
    which may be comprised in one session or in two successive sessions, and if, before
    the expiry of the session in which it is so laid or the session immediately following,
    both Houses agree in making any modification in the rule or notification or both
    Houses agree that the rule or notification should not be made, the rule or notification,
    shall thereafter have effect only in such modified form or be of no effect, as the case
    may be; so however, that any such modification or annulment shall be without
    prejudice to the validity of anything previously done under that rule or notification.
    1[SCHEDULE
    [See section 3]
    LIST OF FESTIVALS
  30. New Year’s Day
  31. Bhogi Festival
  32. Uttarayana Punyakala (Sankranthi)
  33. Kanu Festival
  34. Tyagaraja Aradhana
  35. Purandara Dasara Punyadina
  36. Garuda Jayanthi
  37. Ratha Sapthami
  38. Vyasa Poornima
  39. Maha Shivarathri
  40. Holi Festival
  41. Holi Saturday
  42. Good Friday
  43. Shabh Barath
  44. Chandramana Ugadi
  45. Souramana Ugadi
  46. Sriramanavami
  47. Dr. Ambedkar Jayanthi
  48. Mahaveera Jayanthi
  49. May Day Celebration
  50. Chitra Poornima
  51. Shebe-E-Quader
  52. Jumat-Ul-Vida
  53. Sri Ramanujacharya Tiru Nakshatra
  54. Basava Jayanthi
  55. Ramzan
  56. Shankara Jayanthi
  57. Buddha Poornima
  58. Bakrid
    9
  59. Varamahalakshmi Vratha
  60. Last Day of Mohram
  61. Upakarma
  62. Sri Krishna Jayanthi
  63. Swarna Gowri Vratha
  64. Ganesha Vratha
  65. Thiru Onam
  66. Ananthapadmanabha Vratha
  67. Mahalaya Amavasye
  68. Mahanavami
  69. Vijaya Dashami
  70. Id-Milad
  71. Thula Sankramana
  72. Naraka Chathurdashi
  73. Bali Padyami
  74. Kannada Rajyotsava
  75. Uttana Dwadasi
  76. Gurunanak Jayanthi
  77. Geetha Jayanthi
  78. Shiva Deepa
  79. Christmas Eve
  80. Christmas
  81. Madhva Navami.]1
  82. Schedule inserted by Act 28 of 1997 w.e.f. 30.9.1997

NOTIFICATION
Bangalore date the 13th August 1963,
(Sharavana 22, Saka Era 1885). [No. PLM 189 LLE 63]
In exercise of the powers conferred by sub-section (3) of Section 1 of the Mysore Industrial
Establishments (National and Festival Holidays) Act, 1963 (Mysore Act 24 of 1963), the
Government of Mysore hereby appoints the 14th August 1963, as the date on which the said
Act shall come into force.
By Order and in the name of the Governor of
Mysore,
(H. L. LINGARAJ URS)
Deputy Secretary to Government,
P. H., L. & Ml. A. D.