Employees make up the core of a business. HR compliance in India may seem complicated given that there are so many states with their own requirements, as well as central laws. There are forms that have to be filled in and records that have to be kept. But once you get down to it, it's not as daunting as it seems.
Holidays are a critical part of HR, so make sure that your business meets the holiday compliances. Apart from national holidays, states have laid down their own compliance requirements for holidays, which are regulated by the Shops and Establishments Acts of each state.
So let's get down to Delhi and the Delhi Shops and Establishments Act. If you are running a business in Delhi or if you are involved in the HR compliance of a business in Delhi, you will need to know about the holiday requirements. More specifically, you will need to learn about the Delhi Form J Notice of Holiday under Section 17 of the Delhi Shops Act.
This article will help you understand:
- What Is the Delhi Form J Notice of Holiday Under Section 17?
- Does the Delhi Form J Notice of Holiday Under Section 17 Apply to Your Business?
- Does your business come under the Act?
- How do you know if the Delhi Form J Notice of Holiday under section 17 applies to your business?
- Is your business an exempted establishment?
- What Are the Details of the Delhi Form J Notice of Holiday Under Section 17?
- Weekly Holidays and the Delhi Form J Notice of Holiday Under Section 17
- Things to Keep in Mind for the Delhi Form J Notice of Holiday Under Section 17
- What Are the Related Compliances for the Delhi Form J Notice of Holiday Under Section 17?
- Conclusion
- How Can Deskera Payroll Help?
- Key Takeaways
What Is the Delhi Form J Notice of Holiday Under Section 17?
The Delhi Form J Notice of Holiday under Section 17 is a holiday compliance under Section 17 of the Delhi Shops and Establishments Act. Form J is a form in which you specify the weekly holiday (or holidays) that your employees are entitled to. The Delhi Form J Notice of Holiday under Section 17 has to be displayed as a notice in a visible place on the premises of your establishment.
Most businesses in India come under the Shops and Establishments Act. The act regulates various aspects of employment such as wages, work hours, holidays, and leaves. Commercial establishments have to check that their HR compliances are up to speed with their state’s Shops and Establishments Act and any applicable rules.
Does the Delhi Form J Notice of Holiday Under Section 17 Apply to Your Business?
The Delhi Form J Notice of Holiday under Section 17 applies to your business if 1) your business comes under the Shops and Establishments Act and 2) your business does not have to fix a close day under Section 16.
Does your business come under the Act?
Keep reading to understand if your business would be considered a shop or commercial establishment under this Act.
A shop refers to any premises where goods are sold by retail or wholesale or where services are rendered to customers. This could include an office, workplace, store-room, or warehouse.
A commercial establishment means a premise where any trade, business, profession, or related work takes place. This could include:
- theaters and cinemas
- restaurants
- residential hotels
- other places of public amusement or entertainment
- a society registered under the Societies Registration Act, 1860
- journalistic and printing establishments
- contractors
- private educational institutes
- a premise where a business of banking, insurance, or stocks takes place
A business that fits into the category of a shop or commercial establishment under the Act has to get its Shops and Establishments registration done.
How do you know if the Delhi Form J Notice of Holiday under section 17 applies to your business?
The Delhi Form J Notice of Holiday Under Section 17 applies to any business which is exempted from fixing a close day (and does not have to communicate that fixed close day to the Labour Department).
What is this fixed close day? Section 16 of the Delhi Shops and Establishments Act requires every business to have a close day. A close day means a fixed day when your shop or commercial establishment has to remain closed. As a part of this compliance, a business has to file a form (Form E) to the Labour Inspector that formally communicates which day it has fixed as a close day. Apart from this mandatory close day, the establishment also has to remain closed on three of the national holidays in a year.
However, certain kinds of establishments are exempt from Section 16 and do not have to fix a close day and do not have to submit Form E informing the Inspector of the fixed close day. This is where the Delhi Form J Notice of Holiday under Section 17 comes into the picture.
The exempted businesses have to comply with the Delhi Form J Notice of Holiday under Section 17, by putting up a notice on their premises that clearly specifies which day or days in the week are holidays for that establishment.
Is your business an exempted establishment?
The Act has a schedule that lists out the kinds of establishments that are exempted from complying with Section 16 (and certain other sections of the Act).
The kinds of establishments exempted from having a close day under Section 16 include:
- Establishments for the treatment or care of the infirm or the mentally unwell, which provide treatment and hospitalization for sick people
- Retail shops that deal exclusively in meat, fish, poultry, eggs, milk and milk products, ice cream, cooked food, flowers, tobacco products like cigarettes, beverages, fruits, and vegetables
- Halwai shops
- Retail shops that deal exclusively in medicines or medical or surgical necessities and appliances
- Tanneries
- Travel agencies
However, your business will have to apply to the Labour Commissioner to seek permission to be exempted from Section 16. The application would look like this.
What Are the Details of the Delhi Form J Notice of Holiday Under Section 17?
The Delhi Form J Notice of Holiday under Section 17 requires you to fill in the following details:
- Name of your establishment
- Address of your establishment
- Names of employees
- Day or days on which a holiday is allowed for the employees
In case you have different holidays for different employees, mention the specific days that are holidays for each employee in the Delhi Form J Notice of Holiday under Section 17.
The Delhi Form J Notice of Holiday under Section 17 looks like this:
(Notice of Holiday under Section 17)
Name of Establishment ………………………………………………………………………………………….
Address ……………………………………………………………………………………………………………......
The person employed in the establishment shall be given a holiday on the day mentioned below in the week following the date of this and until further notice:-
Serial No. |
Name of Employee |
Day on which Holiday is Allowed |
|
|
Date …………………………… Signature of the Employer or Occupier
See? It's not that complicated once you get down to it.
Weekly Holidays and the Delhi Form J Notice of Holiday Under Section 17
So now you know about the Delhi Form J Notice of Holiday under Section 17. But what is Section 17? Why is it different from a close day under Section 16?
Section 17 is about the need to have a weekly holiday. It says that every employee should be allowed a minimum of one day as a weekly holiday. This applies to all establishments, including those that have a close day under Section 16. If your business is not exempt from Section 16 and is required to fix a close day, then your weekly holiday would have to be on the close day.
However, if your business is exempt from Section 16, then your weekly holiday would be on the day or days that you specify in the Delhi Form J Notice of Holiday under Section 17. You can also specify different days as holidays for different employees in the Delhi Form J Notice of Holiday under Section 17.
Things to Keep in Mind for the Delhi Form J Notice of Holiday Under Section 17
There are certain things to keep in mind when complying with the Delhi Form J Notice of Holiday under Section 17.
Put the notice up in a visible place
As an employer or HR manager, you have to ensure that the Delhi Form J Notice of Holiday under Section 17 is put up in a visible place on the premises of your business. The Delhi Form J Notice of Holiday under Section 17 needs to be accessible and visible to all the employees that it applies to.
Put it up the week before it will take effect
The Delhi Form J Notice of Holiday under Section 17 should be put up in the week preceding the week in which the holiday schedule will begin to be implemented. In case there is a change, you will have to change the Delhi Form J Notice of Holiday under Section 17 (or put up a fresh notice) the week before the change will be implemented.
No wage deductions for holidays
Yes, this is basic. However, it's also a legal requirement. As an employer, you cannot deduct the wages of any employee for the weekly holiday or the day when your establishment is closed. Even a daily wage employee would have to be paid his or her daily wage for the holiday.
What Are the Related Compliances for the Delhi Form J Notice of Holiday Under Section 17?
There are certain related compliances along with the Delhi Form J Notice of Holiday under Section 17.
Maintaining Records About Employees
Your business has to maintain records about employees in Form G.
This includes details like:
- The name of your establishment
- The names of employees
- The nature of their work
- The wage period
- The wages you pay them
- Work hours
- Overtime work and payment for overtime
- Leave taken (including casual or sickness leave and privilege leave)
- Intervals for rest and meals
Keeping records of such details is also helpful for payrolls and taxes.
Maintaining a Register of Leave
You will also have to maintain a register that records the details of leave taken by your employees in Form I. The leave register will record details like:
- Amount of leave taken
- The date on which the employee applied for leave
- Whether leave was granted
- Dates between which leave was availed
- Casual leave/sick leave and privilege leave
Fixing Daily Work Hours
When fixing your daily work hours, keep in mind that:
- The maximum work hours in a day are 9 hours
- The maximum work hours in a week are 48 hours
- Work hours here refers to the hours your employee has to spend working around your establishment
- There are few exceptions to these requirements such as during periods of stock-taking and consolidating accounts
- However, in such cases, prior intimation has to be given to the Inspector and the person also has to be paid for their overtime work
Intervals for Meals and Rest
When fixing the breaks and meal timings, keep in mind that:
- An employee should not be made to work for more than 5 hours continuously
- The break and meal interval should be at least half an hour
- The timing of this interval should be fixed and communicated to the Labour Inspector a week before it comes into effect
Conclusion
The Delhi Form J Notice of Holiday under Section 17 is an HR compliance that you will have to follow as a commercial establishment if it applies to your business. The first step is to make sure that the Delhi Form J Notice of Holiday under Section 17 applies to your business, i.e., that your business is exempt from a fixed close day. You will have to apply to be exempted in case you haven't already. Once you know that, you have to fill up the Delhi Form J Notice of Holiday under Section 17 and put up the notice of your weekly holidays.
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Key Takeaways
- The Delhi Form J Notice of Holiday under Section 17 is a form in which you mention the weekly holiday(s) that your employees are entitled to
- This Delhi Form J Notice of Holiday under Section 17 has to be displayed as a notice in a visible place on the premises of your establishment
- The Delhi Form J Notice of Holiday under Section 17 applies to any business that is exempt from fixing and filing for a close day under Section 16
- Your business may have to apply to the Department of Labour to be exempted, in case your business has not already done so
- You can specify different days as weekly holidays for different employees in the Delhi Form J Notice of Holiday under Section 17