The question raised by Hr@centuywell is a very important one, and to the best of my knowledge, there is no law that deals with the problem broadly. All the posts in this thread have different views, which do not lead to a commonly acceptable solution to the problem at hand. Some individuals want to know the legal solution, while others advise a practical approach and practices involved in various establishments.
Legal Framework for Leave Matters
Generally, there are two enactments that describe some aspects of leave matters: one is The Factories Act, 1948, and the other is the Shop and Commercial Act. The latter is a State Act, and as such, the provisions of this Act differ from state to state but can generally be said to be simultaneous in nature. I am not going into details thereof for the sake of brevity. One more important thing to note is that any establishment must be registered with either the Factories Act or the Shop and Commercial Act, irrespective of whether it is run by a company, firm, or individual. For legal solutions, we have to consider the provisions of these two Acts only.
Provisions of the Factories Act
As far as the provisions of the Factories Act are concerned, Section 79 is important in respect of the problem at hand. Explanation 2 of Section 79 reads as follows:
“The leave admissible under this subsection shall be exclusive of all holidays, whether occurring during or at either end of the period of leave.”
Here, the word "holiday" has not been described as either a weekly holiday or a festival holiday. The intention of the legislator is very clear here: any holiday in between the period of leave or at the end of the leave will be exclusive of the leave and cannot be counted.
The provisions of the Shop and Commercial Act do not provide any idea about this, to the best of my knowledge. From the above, a clear inference can be drawn that does not permit the inclusion of any holiday falling in between the leave or at the end of the leave granted, irrespective of whether it is a weekly holiday or festival holiday. However, it can be said that when there is no leave in the credit of a workman or he/she is on unauthorized leave, the inclusion of the holiday is permitted.
For non-workmen employees, on whom the provisions of the Act do not apply, it will be covered by the individual leave policy of the concerned establishment. Since there is a flaw in the wording of the Act, it is being interpreted variably. But the intention of the legislator is quite clear.
Now it is up to you and your company to decide what is to be adopted in your leave policy. But in my opinion, if the employee concerned is on authorized leave on Saturday and Monday and has credit in his/her leave account, Sunday (Holiday) should not be counted.
I would request all the viewers, if they agree with my point of view, to validate it by clicking the validate button so that it would help me and many others to form the leave policy in the future.
Regards,
PKJain