How Should Public Holidays Affect Paid Leave and Salary Deductions? Seeking Advice

Dear Sir,

In our company, we provide only 17 paid leaves for each employee from January to December. They can use them at any time or multiple times. After utilizing the 17 leaves, they will be on Leave Without Pay (LWP).

In a scenario where, for example, an employee applies for a continuous 10-day leave, during which we have 2 public holidays, I would like to seek advice. Should I pay salary for these 2 public holidays, or should they be deducted from the salary? Additionally, please advise on how to calculate company holidays within the allotted paid leave time.

Thank you,
Ram.V

Paid Holidays Policy

Paid holidays shall be paid separately. They should not be combined with other types of leave.

Regards,
R. Ponraj

Dear Ram,

Every company should have a leave policy in which the clubbing of leave should be mentioned. Now, your questions can be answered as follows:

The employee can take multiple PL; generally, it should be 3 days or more. If an employee has applied for PL, it can generally be prefixed or suffixed by a weekly off or a public holiday, or both. If an employee has applied for LWP, you can mark the employee as on holiday on a public holiday and pay the salary. If an employee is absent without information, then you can mark them absent on a public holiday, provided that the public holiday falls in between the absent days and not at the start.

Hope this resolves the issue.

Regards,
Viraj

Dear Ram,

If the paid holiday is prefixed or suffixed with the leave, then it can be paid. Otherwise, if the paid holiday falls in between the leave period, it cannot be paid. Even while considering the Paid Holiday calculation, we are taking into consideration if the worker was present for the previous working day and the next working day. He must be present on either one day. Then only will he be eligible for the paid holiday; lest he has to lose the paid holiday.

With warm regards,

S. Bhaskar
9099024667

As per the statutory leave policy, if an employee takes continuous leave for 10 days and there are National or Festival Holidays in the middle, those holidays will be considered as part of the leave. Any remaining leave balance can be adjusted in Casual Leave (CL), Sick Leave (SL), or Privilege Leave (PL).

Regards.

Dear Ram,

If your employee is monthly rated and a public holiday falls between the leave period, in such a case, salary for public holidays should not be paid.

If your employee is daily rated and there is no particular policy, contract, or agreement for that, in such cases, you have to pay for public holidays.

Regards,
Anil Desale
09764690653

I did not understand the statement, "If the paid holiday is prefixed or suffixed with the leave then it can be paid." What does it mean to be prefixed or suffixed? Can you please provide me with clarification on this?

Thank you.

Dear Sapna,

Making payment for a paid holiday is a statutory requirement. If a workman is present on either the previous or the next working day, they should be paid for the holiday. If you call him to work on a paid holiday, he will receive his regular pay as the day is considered a paid holiday. Additionally, for the duration of work on that day, he should be paid double overtime (thus receiving triple payment if he works for 8 hours).

If the workman is absent on the holiday and it continues with Sunday and one casual leave, his salary will be affected. In this scenario, the first day will be the paid holiday, the second the weekly holiday, and the third will be counted as a casual leave day. This situation involves two holidays as a prefix. For example, on 14/1/11, it is a Paid Holiday (Prefix), followed by 15/1/11 as a Casual Leave day, and finally, 16/1/11 as the weekly Holiday (Sunday) (Suffix). Prefix refers to the holiday taken before the leave period, while Suffix refers to the holiday taken after the leave period.

Does this explanation clarify things for you?

With warm regards,

S. Bhaskar
9099024667

If public holidays are interspersed between casual leaves, salaries/wages are to be paid for the public holidays.

Regards,
PVVB KUMAR

We do not need to effect payment if a Paid Holiday falls in between the leave period.

With warm regards,

Regards