Feeling Unjustly Penalized: Should a General Manager Face Loss of Pay for Approved Leave?

I am working as a General Manager with a private company since 21st April 2016. I have a total professional experience of more than 35 years. During July '16, I took casual leave from the 16th until the 19th, inclusive of one Sunday. This leave was availed with prior discussion with the Managing Director and later on through a proper leave application.

In my leave application, I requested leaves on the 16th, 18th, and 19th, presuming that Sunday would be treated as a usual holiday. My July salary is now deducted with one day of Loss of Pay (LOP).

Queries Regarding Loss of Pay (LOP)

I have two queries regarding the above:

1. Is LOP applicable to my position? Based on my knowledge, such deductions can be applied up to the level of Manager or Senior Manager.

2. Was my leave application incorrect? The concern here is that besides losing a day's salary, I feel unjustified by this management decision considering my seniority.

Kindly provide all your valuable feedback before deciding on whether to appeal to the management to review their decision on the matter above.

Thank you.

Regards, ATG

Please refer to the leave policy of your company to have a better understanding. Since you have applied for 3 days of casual leave starting from July 16, 2016, it will legally end on July 18, 2016, and not on July 19, 2016. Hence, 1 day of leave without pay (LOP) has been deducted. In any system or leave policy, if a weekly holiday falls in between the leave period, it will be considered as part of the leave and not as a weekly off or holiday.

Understanding the Sandwich Rule in Leave Policies

The concept is called the sandwich rule. If you take leave from a certain date to another date, all days in the middle are considered leave/absent, even if they are holidays or weekly offs. So, since you applied for 3 days, the 4th day is considered absent. I suspect the system can't deduct another leave day without approval.

The rules apply to everyone, including employed directors. What makes you think it's only for junior levels?

In any case, it's a day's salary, so why make an issue of it? If the salary is processed, let it be instead of trying to make adjustments.

Read the leave policy properly so you don't make such mistakes again.

Dear Jolly Abraham George,

You have taken 3 days of leave starting from Saturday (i.e., before) and ending on Tuesday (after the adjoining days to Sunday, 17 July). It means you were on leave prior to and after the days around Sunday. In such a case, the Sunday in between will be treated as leave. There is nothing wrong with it.

Dear Jolly Abraham George,

Could you please confirm if the company falls under the Factory's Act regulations? If so, salary calculations will be based on 26 days only, and there will be no inclusion of Sundays under any circumstances.

Best regards,
Jeevan

Being a General Manager, you should be a role model, and you would have gone through your company's leave rules and opted for the leave. In general, the intervening holidays with regards to Casual and Sick leave are to be part of the leave. Just leave it as is or discuss with your HOD and get the issue resolved. It will be difficult for the management to run the organization if they have different pockets for different levels.

Yes, the answer depends on the leave policy of the company. The principle followed in government is that casual leave is treated as duty, and hence holidays could be sandwiched. However, in respect of other kinds of leave, sandwiched holidays are counted as leave; it is only that holidays could be prefixed or suffixed in such cases.

Dear All,

Thank you for all your valuable responses. I admit that I should be a role model to others. Since any senior-level person is not confined to a 10-5 schedule, such deductions can weaken the morale of their candidature. The question here is not about losing a day's salary but the treatment of positions that contribute more intellectually to the organization.

Thank you.

First, understand that there is only one set of people in any company who get complete leeway in attendance, punctuality, and timing. That set is the owners. For everyone else, the rules will apply. No company ever (I mean professionally managed and not ones which are glorified proprietorships) can allow employees, at whatever level, this kind of flexibility.

As a senior person, you are not confined to a 10-5 schedule (actually, 10-5 would mean you actually work 7 hours including lunch instead of 8 hours excluding lunch, so I would love to have that schedule). But that is always taken into account when you negotiate a salary package with your company. You are working longer hours, contributing more intellectually, and your work makes the company progress at the pace at which it is. But all that is factored into the job and salary. That is why you get paid lakhs instead of the minimum wages that an ordinary worker gets. By the factor of your work, you don't get the special privilege of taking extra holidays at your wish.

If you are taking off just the fact that you don't work 10-5, there will be many others who also don't work 10-5 but work longer hours without overtime and extra compensation. These would, for example, include your driver. Would you allow him to take an extra day off just because of this? I know that I have taken an extreme example, but it is just to show you where the argument could stretch.

If you are upset that the company deducted salary for your absence on days that you were not actually at work and in line with your leave policy, then I think you need to have a fresh look at your priorities, your work, and nature. Who knows... maybe you are better fitted to work for yourself or as a co-promoter/entrepreneur and need to move in that direction.

Hi Jolly Abraham,

I agree with your contention.

I too heard about this sandwich rule, but is that not a violation of the 7th-day rest which is legally allowed to him? Which act/rules in India say this rest day is also to be included while processing casual leave requests? Can anyone clarify this for better understanding?

Understanding Weekly Off and Leave Provisions

The rule of law essentially states that everyone employed in a factory (or office/shop) is entitled to one day of paid holiday for every six days worked. This effectively means there is a weekly off. No one can be allowed or required to work on the weekly off.

Separately, there is a provision in the Factory Act (and in many state Shop & Establishment Acts, as well as in the Standing Orders) that if any holiday or weekly off falls in the middle of leave taken by the employee, the weekly off or holiday is counted as part of the leaves.

Just because an employee is losing a paid leave does not mean the provision of the weekly holiday is violated. The employee is getting their rest day; however, they are not getting paid for that day. This is the provision of the act, and therefore it overrides any logic we may apply.

The rules for shops and establishments are slightly different, so we need to know the type of organization and the state where the employee is operating from. However, mostly the rules are the same as stated above.

Regards,
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