The PUNJAB INDUSTRIAL ESTABLISHMENTS (NATIONAL AND FESTIVAL HOLIDAYS AND CASUAL AND SICK LEAVE) ACT 1965

THE PUNJAB INDUSTRIAL ESTABLISHMENT 
(NATIONAL AND FESTIVAL HOLIDAYS AND CASUAL 
AND SICK LEAVE) ACT, 1965 (6.1 – 6.6) 
 
 
(Punjab Act 14 of 1965) 
TABLE OF CONTENTS 
 
1. Short title, extent and commencement. 
2. Definitions. 
3. National and festival holidays. 
4. Casual and sick leave.  
5. Wages 
6. Account of holidays and leave to be kept. 
7. Inspectors 
8. Powers of Inspectors. 
9. Penalties. 
10. Power to recover wages. 
11. Penalty for obstructing Inspector. 
12. Cognizance of offences. 
13. Exemptions. 
14. Rights and privileges under other laws, etc., not affected. 
15. Power to make rules. 
 
The Schedule 
 
Received the assent of the Governor of Punjab on 19
th. May, 1965, and was first 
published in the Punjab Government Gazette Extraordinary, dated 22nd. June, 1965. 
 
An Act to provide for the grant of Nation al and Festival Holidays and Casual and 
Sick Leave to persons employed in Industrial Establishments in the State of Punjab. 
 
Be it enacted by the Legislature of the State of Punjab in the Sixteenth Year of the 
Republic of India as Follows: - 
 
Statement of Objects and Reason. – The Bill seeks to regulate the grant of various kinds 
of leave and holidays to workme n employed in Industrial Establ ishments in the State. At 
present these facilities are only available as a result of some awards or settlements or, in 
some cases, through Standing Orders. It would also reduce industrial disputes and friction 
among the employees on the grounds of non-gr ant of National and Festival holidays, 
Casual and Sick Leave and thus ameliorate  the condition of workmen and improve their 
relations with the employers. (Punjab Gove rnment Gazette Extraordinary, dated the 25
th. 
February, 1965). 
 
1. Short title, extent and commencement. -- (1) This Act may be called the Punjab 
Industrial Establishment (National and Festival Holidays and Casual and Sick Leave) 
Act, 1965. 
 
(2) It extends to the whole of the State of Punjab/Haryana. 
 
(3) It shall come into force on the 1
st. day of July, 1965. 
 
2. Definitions. -- In this Act, unless the context otherwise requires: 
 
(a) “day” means a period of twenty-four hours beginning at mid-night. 
 
Provided that in the case of a worker w ho works in a shift which extends beyond 
mid-night, such period of twenty-four hours shall begin when his shift ends; 
 
(b) “worker” means— 
 
(i) any person (including an appr entice) 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 expressed or implied; or 
 
(ii) any other person employed in a ny industrial establishment whom the 
Government may, by notification, declare to be a worker for the 
purposes of this Act; 
 
(c) “employer” when used in relation to an industrial establishment, means the person 
who has ultimate control over the affair s of the 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 shall be deemed to be the employer; 
(d) “Government means the Government of the State of Punjab; 
(e) Industrial establishment” means— 
 
(i) any factory as defined in clause (m ) of section 2 of the Factories Act, 
1948 (Central Act 63 of 1948), or any place which is deemed to be a 
factory under sub-section (2) of section 85 of that Act; or 
 
(ii) any plantation as defined in clau se (f) of section 2 of the Plantation 
Labour Act, 1951 (Central Act 69 of 1951); 
(f) “inspector” means and Inspector appoin ted under sub-section (1) of section 7; 
(g) “prescribed” means prescribed by rules made under this Act; 
(h) “wages” means all rem uneration (whether by way of  salary, allowances or 
otherwise) expressed in terms of money or capable of being so expressed which 
would, of the term of employment, express or implied where fulfilled, be payable 
to a worker in respect of his employment  or of work done in such employment, 
but does not include: 
 
(a) any bonus; 
(b) the value of any house accommodation, supply of light, water, medical 
facilities or other amenity or of any service or of any confessional supply of 
food grains or other articles; 
(c) any contribution paid or  payable by the employer: - 
 
(i) to any pension or provident fund, and the interest which may have accrued 
thereon; or 
(ii) for the benefit of the worker under any law for the time being in force; 
(iii) any traveling allowance or the value of any traveling concession; 
(iv) any sum paid to the worker to defray special expenses entailed on him by 
the nature of his employment; or 
(f) any gratuity payable on the  termination of employment. 
 
3. National and festival holidays. – (1) Ever worker shall, in each calendar year, be 
allowed in such manner an don such conditions as may be prescribed— 
(a) three national holidays of  one whole day each on the 26
th. January, 15 th. August 
and 2nd. October; and 
(b) four [five – for Haryana] other holiday s on any of the festivals specified in the 
Schedule appended to this Act; 
Provided that for purposes of clause (b), wher e at least ten per centum of the workers of 
an industrial establishment so desire, they may, in lieu of the festiv al holidays, avail of 
two half holidays on any of the festival days of their choice specified in such Schedule 
after settlement in this behalf has been made between the employer and the representative 
of the workers in such manner as may be prescribed. 
(2) The Government may, by notification, add to  the Schedule appended to this Act any 
festival and thereupon the Schedule shall be deemed to be amended accordingly. 
4. Casual and sick leave. –  Every worker shall, in each calendar year, be allowed by the 
employer casual leave for seven days and six leave for fourteen days in such manner and 
on such conditions as may be prescribed. 
Explanation. – For purposes of this section, such conditions may provide that one kind 
of leave shall not be linked with another kind of leave, whether due under this Act, or 
under any other law for the time being in force. 
5. Wages. -- Notwithstanding any contract to the contrary, every worker shall, for each of 
the national and festival holidays and of the cas ual or sick leave, be paid by the employer 
wages at a rate equivalent to his average daily wage; 
 
Provided that – 
(a) no worker shall be entitled to be paid such wages for any holidays, or leave other 
than a national holiday, if his name was not on the rolls of the industrial 
establishment continuously for a period of one month immediately preceding such 
holidays or leave; 
(b) where a worker is entitled to si ckness benefit under the Employees State 
Insurance Act 1948, or sickness allowance under the Plantation Labour Act, 1951, 
he shall not be entitled to be paid such wages for the days of sick leave allowed to 
him under this act; and 
(c) where a worker is not entitled to such sickness benefit or si ckness allowance, he 
shall be paid waes for the days of sick leave, allowed to him under this Act at a 
rate equivalent to one half of the average daily wage. 
 
(2) Where a worker works on any holiday allowe d under section 3, he shall at his option, 
be entitled to— 
(a) twice his average daily wage for that day, or 
(b) his average daily wage for that day and a substituted holiday will his average 
daily wage on any other day within nine ty days from the day on which he so 
works. 
Explanation. – For the purpose of this section, the av erage daily wage of a worker shall 
be computed on the basis of his total full time wages during the pr eceding three calendar 
months exclusive of any over-time wages, if any; 
 
Provided that the average daily wage of worker  who is paid wages by the day of at piece 
fate shall be computed on the basis of his wages for the days on which he actually 
worked during the month immediately preceding such holidays or leave. 
6. Account of holydays an d leave to be kept. –  Every employer shall keep in such form 
and manner as may be prescribed an account of  the festival holidays, casual leave and 
sick leave of every worker and every worker shall have access to such account. 
7. Inspectors.-- (1) The Government may, by notification, appoint su ch persons or class 
of persons as it may think fit to be Inspector s for carrying out the purposes of this Act for 
such areas as may be specified in the notification. 
(2) Every Inspector shall be deemed to be a public servant within the meaning of section 
21 of Indian Penal Code (Central Act XLV of 160). 
8. Powers of Inspectors. – Subject to any rules made by th e Government in this behalf, 
and Inspector may, within the area for which he is appointed— 
(a) enter at all reasonable times any place wh ich is, or which he has reason to believe 
to be, an industrial establishment; 
(b) make such examination of the premises and of any prescribed registers, records 
and notices and take on the spot or othe rwise 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 on the purposes of 
this Act; 
Provided that no one shall be required under this section to answer any question or give 
any evidence tending to incriminate himself. 
9. Penalties. --   Any employer who contravenes any of the provisions of sections 3,4,5 
and 6 shall be punishable, for the first offe nce, with fine, which may extend to one 
hundred rupees and for a second or subsequent  offence, with fine which may extend to 
two hundred fifty rupees. 
10. Power to recover wages. -- (1) Where a Magistrate, wh ile convicting an employer 
under section 9, is satisfied that the worker has not been paid his due wages under this 
Act, the amount of which shall be determin ed by the Magistrate, he shall direct the 
employer to pay such wages to the worker. 
(2) The amount of wages determined under s ub-section (1) shall, for the purposes of 
recovery, shall be deemed to be a fine imposed under this Ac t, in addition to the penalty 
imposed under section 9 and shall be realized as such. 
11. Penalty for obstructing Inspector. -- Whoever willfully obstructs an Inspector in the 
exercise of any power conferred on him by or  under this act or intentionally omits to 
produce on demand in writing by and Inspecto r any register, record or notice in his 
custody which may be required to keep in pur suance of this Act or of any rule made 
thereunder, shall be punishabl e with imprisonment for a term which may extend to three 
months, or with fine which may extend to five hundred rupees or with both. 
12. Cognizance of offences. -- (1) No court shall take c ognizance of any offence under 
this Act or the rules made thereunder except on a complaint in writing by an aggrieved 
person or an Inspector. 
(2) No court below that of a Judicial Magist rate of the first class shall try any offence 
punishable under this Act or the rules made thereunder. 
13. Exemptions. -- (1) Nothing contained in this Act shall apply to— 
(a) any worker drawing wages exceeding five hundred rupees per mensem and 
employed mainly in the managerial administrative or supervisory capacity; 
(b) any worker employed in any industria l establishment under the control of the 
Government of the Central Government, or any State Government to whom the 
Civil Service Rules or any other similar rule s or regulations notified in this behalf 
by the Government, Central Government or any State Government, as the case 
may be apply; and 
(c) any mine or oil field. 
(2) The Government may, in public interest by notification, exempt either permanently or 
for any specified period any class of industr ial establishments from  all or any of the 
provisions of this Act subject to such conditions as the Government may deem fit. 
14. Rights and privileges under other laws, etc., not affected. -- Nothing contained in 
this Act shall affect any right s or privileges which any workers is entitled to receive 
under any other law, [award—for Haryana] contra ct, custom or usage, if such rights or 
privileges are more favourable to him than those to which he would be entitled under this 
act. 
15. Power to make rules. (1) The Government may, by notification and after previous 
publicaitn, make rules fo the purpose of carrying out the provisions of this Act. 
(2) In particular, and without prejudice to the foregoing power, such rules may provide 
for— 
(a) the manner in which, and the conditions  on which, national and other holidays 
shall be allowed to the workers under section 3; 
(b) the number of days for which, the manne r in which and the conditions in which, 
casual and sick leave shall, be allowed to workers under section 4; 
the form and manner in which an account of festival holidays, casual leave and 
sick leave of workers shall be maintained by employers under section 6; 
(3) In making a rule under this Act, the G overnment may provide that a contravention 
thereof shall be punishable with fine, which may extend to fifty rupees. 
(4) Every rule made under this section shall be  laid as soon as may be after it is made 
before [-] the State Legislature while it is in  session for a total period of ten days which 
may be comprised in one sessions or in two su ccessive sessions, and if, before the expiry 
of the session in which it is so laid or the sessions immedi ately following, [the 
Legislature] agree in making any modification in  the rule or [the Legislature] agree that 
the rule should not be made, the rule shall ther eafter effect only in such modified form or 
be of no effect, ass the case may be; so howev er that any such modification or annulment 
shall be without prejudice to the validity of anything previously done under that rule. 
 
THE SCHEDULE 
[See Section 3(1) (b)] 
 
New Year Day     Milad-ul-Nabii 
Basant Panchmi     Janam Ashtmi 
Guru Ravi Dass’Birthday    Dushehra 
Shivratri      Maharishi Balmiki’s Birthday 
H o l i        D e w a l i  
Hola       Lala Lajpat Rai’s Death Anniversary 
Id-l-fiter      Guru Nanak’s Birthday 
Lord Mahavir’s Birthday    Christmas Day 
Good Friday      Jor Mela Fatehgarh Sahib 
Baisakhi      Guru Gobind Singh’s Birthday 
Id-ul-Zuha      Vishwa Karma Jainti 
Guru Arjun Dev’s Martyrdom Day   May Day 
Muharrum 
 
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