The KARNATAKA INDUSTRIAL ESTABLISHMENTS (NATIONAL AND FESTIVAL HOLIDAYS) ACT, 1963

THE KARNATAKA INDUSTRIAL ESTABLISHMENTS (NATIONAL 
AND FESTIVAL HOLIDAYS) ACT, 1963 
ARRANGEMENT OF SECTIONS 
Statement of Object and Reasons 
Sections: 
 1. Short title, extent and commencement. 
 2. Definitions. 
 3. Grant of National and festival holidays. 
 3A. Grant of Holidays on the polling day, for House of the people or to the State Legislative 
Assembly. 
 4. Employer to send statement to Inspector. 
 5. Wages. 
 6. Inspectors. 
 7. Powers of Inspectors. 
 8. Penalties. 
 9. Penalty for obstructing Inspectors. 
 9A. Cognisance of offences. 
 10. Exemptions. 
 11. Rights and privileges under other laws, etc., not affected. 
 11A. Power of State Government to amend the Schedule. 
 12. Power to make rules. 
 13. Rules and notifications to be laid before the State Legislature. 
  SCHEDULE. 
* * * * 
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 is sues 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 t hat 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 (Extraordina ry) 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 su b-section (3) of section 5 of t he 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 immediat ely preceding such ho liday. 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 th e 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 offenc es 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 t hat they were not agreeable to the day being 
declared a holiday in respect of establishmen ts owned or controlled by the Government of 
India. 
It is therefore considered necessary to decla re 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 (Extraordina ry) 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 Fe stival 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 giv en 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 ambiguit y 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 parlia mentary or Assembly Constituency under the 
Representation of Peoples Act, 1951 (Central Ac t 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 
1. Short title, extent and commencement.—(1) This Act may be called the 
1[Karnataka]1 Industrial Establishments (National and Festival Holidays) Act, 1963. 
 1. 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. 
 1. 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. 
1. Act came into force w.e.f. 14.8.1963 by notifica tion.  Text of the notification  is at the end 
of the Act 
2. 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; 
 1. 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 sub-
section (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 employ ment, 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 empl oyees 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 
 1. Section 3 and 3A substituted by Act 28 of 1997 w.e.f. 30.9.1997 
 6
4. 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. 
5. 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. 
 1. 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,— 
 1. 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,— 
 1. 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 tota l period of thirty days within a continuous 
period of ninety days immediately preceding such holiday.]2 
1. Substituted by Act 28 of 1997 w.e.f. 30.9.1997 
2. 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. 
6. 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 
 1. 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). 
7. 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. 
8. 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. 
1. Inserted by Act 28 of 1997 w.e.f. 30.9.1997 
2. Substituted by Act 28 of 1997 w.e.f. 30.9.1997 
9. 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 
 1. Section 9A inserted by Act 1 of 1975  w.e.f. 23.1.1975 
10. 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. 
11. 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 
 1. Section 11A inserted by Act 28 of 1997 w.e.f. 30.9.1997 
12. 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. 
 1. Substituted by Act 28 of 1997 w.e.f. 30.9.1997 
13. 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 modi fication 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 
 1. New Year’s Day 
 2. Bhogi Festival 
 3. Uttarayana Punyakala (Sankranthi) 
 4. Kanu Festival 
 5. Tyagaraja Aradhana 
 6. Purandara Dasara Punyadina 
 7. Garuda Jayanthi 
 8. Ratha Sapthami 
 9. Vyasa Poornima 
 10. Maha Shivarathri 
 11. Holi Festival 
 12. Holi Saturday 
 13. Good Friday 
 14. Shabh Barath 
 15. Chandramana Ugadi 
 16. Souramana Ugadi 
 17. Sriramanavami 
 18. Dr. Ambedkar Jayanthi 
 19. Mahaveera Jayanthi 
 20. May Day Celebration 
 21. Chitra Poornima 
 22. Shebe-E-Quader 
 23. Jumat-Ul-Vida 
 24. Sri Ramanujacharya Tiru Nakshatra 
 25. Basava Jayanthi 
 26. Ramzan 
 27. Shankara Jayanthi 
 28. Buddha Poornima 
 29. Bakrid 
 9
 30. Varamahalakshmi Vratha 
 31. Last Day of Mohram 
 32. Upakarma 
 33. Sri Krishna Jayanthi 
 34. Swarna Gowri Vratha 
 35. Ganesha Vratha 
 36. Thiru Onam 
 37. Ananthapadmanabha Vratha 
 38. Mahalaya Amavasye 
 39. Mahanavami 
 40. Vijaya Dashami 
 41. Id-Milad 
 42. Thula Sankramana 
 43. Naraka Chathurdashi 
 44. Bali Padyami 
 45. Kannada Rajyotsava 
 46. Uttana Dwadasi 
 47. Gurunanak Jayanthi 
 48. Geetha Jayanthi 
 49. Shiva Deepa 
 50. Christmas Eve 
 51. Christmas 
 52. Madhva Navami.]1 
     1. 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 Holi days) 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. 
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