How Are Salary Deductions Handled for Leave Without Pay in India’s Transport Sector?

Dear Associates,

Please reply to the following urgent queries:

Leave Without Pay and Salary Deductions

1. If one's leave without pay from June 20, 2012, continues until July 02, 2012, will the salary deduction for July 01 (Sunday) be made or not? Please confirm if, during the said leave without pay period, the salary deductions will be for 11 days (excluding 2 Sundays) or 13 days (including 2 Sundays). Please provide a reference to the rule, if any.

Industry Standards for Salary Deductions

2. What are the common rules for salary deductions for leave without pay across the industry in India, especially in the Transport or Logistics industry in Mumbai/Maharashtra?

Inclusion of Sundays and Holidays in Deductions

3. Will the salary deduction for leave without pay include Sundays and holidays that are before, after, or within the leave without pay period? In other words, will the deduction be based only on the days of work absence, or will it also include Sundays and other holidays?

Calculation Basis for Per-Day Salary

4. When making such deductions, is the per-day salary calculated based on 31 or 30 days?

I look forward to your valuable responses.

Regards,

If anyone takes leave from 1st June to 30th June without pay, can you pay for 4 weeks of days off? No, right? During the leave period, the week off or holiday is included as part of the leave, okay.

First, is there any leave policy followed in your organization? Most companies follow a similar format. For example, if a person is on leave on Saturday and Monday, then the following intervening Sunday will also be considered as leave.

Regards,
Nitesh Jain

The leave will be calculated for 13 days, including Sundays/holidays. For leave rules, you may check the following: http://www.nitt.edu/www/uploads/684_leaverulesv2.pdf. If the deduction for any unauthorized leave is to be made from the wages, the gross salary would be divided by 31, at the rate of deduction per day.

Clarification on Weekly Off and Salary Deductions

When an employee is absent for 13 days without wages, how can they earn a weekly off during the intervening period as they were deemed not to be working for the entire period? Therefore, you need to deduct wages for the entire 13 days.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]

Thank you all for your valuable responses. Can you please suggest some Act/Rule/Link in India which contains very clear instructions for leave/leave without pay/calculating holidays and Sundays/weekly offs while doing leave calculation, for all companies/corporate? Thanks in advance.