Is It Right To Deduct Leave Or Salary In Lieu For The Days (i.e. Sunday Or Holiday Or Weekly Off) For Which We Are Not Paying.? - CiteHR
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Dear Mr. Aditya,
First of all, please dont mind My name is "Taran" Not "Tarun". Secondly We are paying full monthly payment in case an employee work for whole month and avail any paid leave. but in case of LOP/LWP we need to and have to calculate One day salary for deduction purpose that can only be calculated by dividing month's salary by no. of actaul working days or no. of days in month depends on companies policy. Because there is no written formula for calculating on month salary in any employment act Am I right? if any formula to calculate per day salary is written in any employment ACT than please let me know so that i can factually update my knowlegde.

You are cent per cent right, an EL is deducted for every W/Off and Holiday. Here the catch is that the employer can give any No. of Leaves either including/excluding as per the company policy, the ACT is silent here. Since the Act only states the minimum No. of Leaves in a year and not the maximum No. of leaves per year, the company cannot give less than what the ACT states about the leave. I hope you understand my view.
Hence if the employer is ready to compensate the leave against W/off and Holidays there is no harm, the company can go ahead with it (Policy)

First, understand the computation
You are deducting monthly ages by 26 not by 30. So that way you have already included wages of the weekly off in the working days. So you are not deducting wages for the weekly off. The per day rate has been increased to compensate for the weekly off. In effect you are paying for the weekly off.
By this is only for weekly off (4 Sundays a month) and not for holidays. Holidays are counted as working days. Else the markup on working days increases and changes each month, which is a bad idea.
The second point you are raising is called sandwich rule.
If there is a weekly off before / after the leave days, it is not to be counted.
However, if you have weekly off or holiday / festival day in the middle of your leave, it will be counted in the leave days. All offices follow this rule, as do most factories.

Respected Saswata Banerjee,

I agree that per day rate has been increased to compensate weekoffs (basicly we are not paying for week off we are compensating it by increasing per day rate right ?) and holiday should be treated as working day, but incase any employee have taken an LWP or Absent suppose on wednesday.

so to calculate LOP for that day

suppose his salary is 10000/pm

If i calculate per day rate by using 26

=10000/26 (excluding weekoff) = 384.61 (near about 385)


If i calculate per day rate by using 30

=10000/30 (including weekoff) =333.33 (near about 333)

so In case of 26 deduction is higher and lower in case of formula using 30 as dividing factor.

I think this is not in favor employee to deduct amount on higher end.

and in Sandwich rule it is costing an extra leave to employee from his leave account if we exclude week off in salary calculations

this case is also not in favor of employee.

My Boss says to use 26 as dividing factor in salary processing and follow the sandwich rule also.

should I follow my boss or raise my concern in front of him again?

can there any ethical issues or legal issues be raised by employees if I follow my Boss?

The courts take the 26 route and allow sandwich rule
Both are accepted practice.
In min wages act again, the 26 rules is applied, and also in supreme court decisions on Gratuity computation.
So your boss is right.
Sandwitch rule is standard in the industry, live with it.
In your example below, you are losing Rs. 50 more for bunking office for a day.
It hardly matters when you consider the employee gets a salary of Rs. 10,000. Impact is half of a percentage.
Smoke 4 cigarettes less...... and you would have made it up. :-)

Respected Seniors,
Thank you for your guidance , this discussion have cleared my concepts. and I have learned new concept too.
Can you please suggest me where I can find the details about Supreme court's decision regarding gratuity computation?
And Saswata Ji, I never smokes :) and for match up Rs. 50 I have to miss one movie for the month :)
Thanks & regards,

On a lighter note,
you get a movie ticket for Rs. 50 ????
Here its a min of Rs. 250
About the smoking, i think you were talking of the other employees, not your own, so i am sure some of them do smoke.
Any case its an incentive not to take unauthorised or unavailable leave.
About where to find the supreme court decision, just google and you will get the link and references.
If you really cant find, i will send you. But learn to use google. I will give you a hint, in case you are confused with number of cases, it was in AIR 1984
(in case you do not know, AIR = All India Reporter)

Respected Saswata ji,
Yes here in my city Morning shows starts from Rs. 50 in some multiplex. And i prefer morning shows instead of evening shows that can cost upto Rs. 250-300. As movie is same and multiplex is same so why spend Rs. 250 for services that we can get in just Rs. 50 :)
And about smoking I thought you were telling me as you used word "you", I apologies, its my misunderstanding.
Regarding supreme court decision, I googled but didnt got detailed information. I also read the discussion regarding this in Cite HR but didnt got satisfied, thank you for the hint Hope I will get what i want :)
Thanks & Regards,


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