As per Section 135B of the Representation of Peoples Act, a Company would have to grant a paid holiday on the eve of election.
The said section is reproduced as below:
135B. Grant of paid holiday to employees on the day of poll.—
- Every person employed in any business, trade, industrial undertaking or any other establishment and entitled to vote at an election to the House of the People or the Legislative Assembly of a State shall, on the day of poll, be granted a holiday.
- No deduction or abatement of the wages of any such person shall be made on account of a holiday having been granted in accordance with sub-section (1) and if such person is employed on the basis that he would not ordinarily receive wages for such a day, he shall nonetheless be paid for such day the wages he would have drawn had not a holiday been granted to him on that day.
- If an employer contravenes the provisions of sub-section (1) or sub-section (2), then such employer shall be punishable with fine which may extend to five hundred rupees.
- This section shall not apply to any elector whose absence may cause danger or substantial loss in respect of the employment in which he is engaged.
In addition to the above, some of the states, publish a notification, declaring the election day as holiday, under the provisions of the Industrial Establishment (National & Festival Holidays) Act. Just to give you an example,Section 3-A to the Karnataka Industrial Establishment (National & Festival Holidays) Act, 1963 it is mandatory to declare paid holiday on the day of polling.
Karnataka Industrial Establishments (National & Festival Holidays) Act 1963:
Under Sec. 3-A
GRANT OF HOLIDAY ON THE POLLING DAY, FOR HOUSE OF PEOPLE OR THE STATE LEGISLATIVE ASSEMBLY:- Not with standing 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 Govt. 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.




