If Notice Period Ends On A Holiday, Salary Will Be Calculated Till Last Working Day?

Hi,
We have an employee who resigned last December and his pay was calculated till last working day 30 Dec and not 31st Dec (company approved holiday). As per our company's trend, we used to calculate pay until the day of release (even if it falls on a holiday). Now, the new management wants to change this practice by asking employees to resign so that their last working day falls on any day in the workweek (Mon - Fri).
To give further inputs, we are Kolkata based IT company and have a decent HR policy and this issue has become a cause of disagreement between HR and Management.
Please suggest what we should do as another employee has resigned and his notice period runs out on "Good Friday
I appreciate any help,
Thank you in advance.

Such changes in exit policy needs to be informed to all employees.
This change hardly results in one day financial effect.
I personally feel that if last day of notice is a holiday,payment should not be restricted.

Alex: If LWD is on a holiday (any holiday as per company policy), then payment has to be made. If LWD is to be on a working day, then you need to issue a letter relieving the employee of service on the working day (before notice period stated by HR policy or after).
Hope this helps.

Alex : Usually the Payment of full & Final and last working defined based on the Reliving letter issued to employee, now, management can not issue a reliving letter stating that "You will be relieved from the company from closing hour of 31.12.XX" as the day is Holiday.
If the management still issues the letter of reliving with 31.12.XX then you have to pay that day also.
Hope this logic will help.

In all these cases referred to, it is logical to conclude taking the "Date of relief" as the criteria as per the Relieving letter issued to the exiting employee. Some times date of the letter and date of relief could be different. For e.g. a person can be treated as relieved on Sunday (31st) as the month closes on that allowing the rest day as paid holiday and for all practical purposes he will be treated as relieved on the previous working day i.e. 30th Saturday but the letter could be dated 30th the last working day of that week on which day the exiting employee hands over his charge and take his NDC. It's nothing wrong to treat it this way. Only thing required here is the letter of relief should be properly worded so that any confusion should be avoided. This logic can be extended to a retiring employee, supposing an employee retires on 31.12.2015 being a declared holiday whereas he is entitled for full month's salary. Just because the last day happens to be a weekly or declared holiday he should not be deprived of the wages. But at the same time in case of person who resigns and he is relieved on a particular day but the next day happens to be a (festival) declared holiday, the estt. can use their discretion whether or not to allow a paid holiday, which cannot be claimed as a right because he has been relieved on the previous day itself and on the day of holiday he/she no more an employee.

Dear Alex,
Release from employment as a result of termination of employment by any party is affected from the date so mentioned by the employer in its relevant order. Usually, no employer will like to make payment to an employee for a day(if it is a holiday) when he has not worked. This action of the management cannot be challenged. I would advise you not to waste your time and energy on one day's wages/pay and take care of other things.
S.K.Johri

Last date of work may be mentioned as 30.12.XX in his relieving letter or his service certificate, however in his full and final settlement the salary for the holiday i.e., 31.12.XX should be paid.