Dear Vhatkarneelima,
I presume you are in HR.
Rules governing leave policy, you should decide it for your organization. You should frame it, put it in black and white. Make it known to every one in the organization. So, there won't be any ambiguity in your mind as well of others.
Normally, any paid holiday / paid weekly off intervening any kind of leave, it is treated as leave of that kind and not as holiday / weekly off. If you decide to consider intervening holiday / weekly off not as leave but it is holiday / weekly off, please let me know. I would like to join your esteem organization. This is the best way to attract persons like me and retain them for long.
Hope you get it what I said.