Understanding the Difference Between Holidays and Leaves: How Should HR Handle This?

Dear Seniors,

Hello, I am working in a builder firm as an HR person. Till this time, we never had any leave policy in our office. Now, the partners are deciding to adopt one. I proposed to them that there should be a minimum of 21 days leave granted to the employees. However, the top bosses are not agreeing to it and are saying that the national holidays will be inclusive in the leave, which amounts to 16 days in a year, and the rest 5 days the staff can take as leave. I would like to know if there is any difference between holidays and leaves and if this difference is stated in any of the acts. This way, the system is not beneficial to the staff and is also unprofessional. This is creating a kind of demotivation among the staff. Please help me at the earliest.

Thanking you in anticipation.

Regards,
Deepali

Dear Deepali,

Holiday is given by the company with pay, and leave is taken by the employee. In an organization, there will be 12 to 15 days of annual holidays, which includes national holidays as well. Some holidays depend on the company type or nature.

Regards,
Susheelarao

Hi Deepali,

Please ensure compliance with the Shops and Establishment Act along with the State Rules, which outline leave provisions and holidays. Subsequently, bring to the attention of the owners that these are mandatory provisions as per the state laws, and their agreement is required.

The owners of the company are unlikely to agree until you provide supporting documents to justify your recommendations.

Regards,
Sawant

Thank you, everybody, for giving me an early reply.

I have checked again the Shop & Establishment Act; however, there is no clear-cut notification that a company has to give the National holidays 14 to 16 days over and above the 21 days Paid leaves. My management is still saying that we will announce 25 days total leave (inclusive of 4 mandatory national holidays), and no other holidays will be granted. If the leave is balanced, then the staff will be allowed to take leave on particular festivals, or else it will be considered Leave without Pay. Please give me the exact reference of the section as per the Shop and Establishment Act that I can show to my management as proof of evidence.

Regards, Deepali

Dear Deepali,

There are typically 13 standard holidays in a year, including national holidays. In addition to these, employees should also be eligible to take leaves such as Annual Leave (varies from 15 to 21 working days) and Sick Leave (10 working days).

I hope this information helps to address your query.

Thanks,
SS

Deepali,

Check the following link: [IMG]https://www.citehr.com/images/misc/tag.png[/IMG] Difference between Holidays and Leaves

Hello,

Your establishment is definitely covered by the "Bombay Shops and Commercial Establishments Act." It provides for Earned/Privilege Leave, which amounts to about 21 days for a year and is earned at a rate also specified in the act. Employers' wishes do not matter unless the employer wishes to breach applicable law!

Depending on the salary/wage levels, your establishment may also be covered under the ESI Act, where the employer is not required to give "sick leaves," but the covered employee is eligible to receive "sickness benefit" for all absences greater than two days. The "benefit" is roughly 5/8th of the salary/wage for the period of sickness. This benefit is theoretically available for over 90 days in a year.

Paid Holidays, generally known as Festival holidays, are governed by the Negotiable Instruments Act and the National and Festival Holidays Act. You have to read up on these. The paid holidays that the State Govt declares for each year are NOT binding on the employer. However, the Shops Act also states that 26th January, 1st May, 15th August, and 2nd October are compulsory holidays. If employees are required to work on these days, they must be compensated additionally.

So, mostly your subject is covered by different laws, and the employer has precious little discretion in the matter. Collect and compile the data and present it to your superiors as per what the law states and what you recommend. Hopefully, they will understand. If despite all this, the powers that be wish to ignore it, in your position in the hierarchy, there is nothing much you can do! Either lump it or look out!

Regards,
Samvedan
September 15, 2008

Dear Dipali,

I would suggest that there should be 9 sick leave and 12 casual leave in the leave policy. Apart from that, public holidays are paid leaves. If an employee exceeds 9 sick leaves and 12 casual leaves, then it will result in Leave Without Pay (LWP).

Regards,
Piyali Bhadra

Dear All,

Your answers are very well elaborative; however, after studying the Shop and Establishment Act, I am still not clear on the point regarding any provision in the act that states the employer has to give public holidays in addition to the 21 days of annual leave. My employer is saying that we are not going to declare any public holidays in the company, only the 4 national holidays that are mandatory. This means if I want a holiday on Diwali or Dusshera, then I will have to apply for leave for that particular day. While the staff from other organizations would actually be enjoying a holiday, I will have one leave deducted from my 21 days quota. If I calculate the major festivals, then I will have to take a minimum of 12 leaves in a year. So, at the end of it, I will have only 13 leaves in my hand. Is there any provision in the Act that clearly states that public holidays are to be granted over and above the annual leave?

Seniors, please reply as soon as possible as I have to provide evidence to the management.

Regards,

Deepali

As much has already been discussed at length about leaves and holidays in the above posts, I don't have anything left to define or say.

But there is something to note: if you combine your leave with a national or proposed holiday, then that holiday may be counted as a leave (although I'm not entirely sure about this!).

For example, if Saturday is a working day at your office and you take two leaves - one on Saturday and one on Monday (with Sunday being a natural holiday) - then in such a situation, it may be counted as three leaves.

Regards,
Faisal Mustafa Khan

Dear Seniors,

I am an MBA student and I am doing my summer internship. The project is on HR policies and procedures. Can you guide me, please?

Thank you.

Hi,

Please check the attachment in which I mentioned the holidays and leave policies in general criteria. I believe HR personnel should have the authority to access the policy without hindrances from top management.

Thanks & Regards,

Sanjay Saha
HR Executive

As per my understanding, only four paid national holidays are permitted under the Bombay Shops Act. For festival days, staff can apply for them in advance and can use any casual leave if available for the festival holiday.

Hi, please share the leave policy for construction site staff.

---

Hi, please share the leave policy for construction site staff.