Confused About Leave Deductions? Seeking Advice on Handling HR Policy Issues

Dear All,

My name is S Naga Raju, and I work as an HSE Professional at XXX Management and Travels Pvt Ltd in Arakkonam near Chennai. Our company is registered under the Companies Act, 2013, and Company Rules 2014. I took leave from 3rd Oct to 6th Oct with the manager's approval. However, the HR department deducted 6 leaves instead of 4, including Saturday and Sunday.

Understanding Leave Deductions

According to the HR Department statement, a weekly off (paid holiday) is granted in accordance with the Shop and Establishment Act. This means that a weekly off is provided to staff who have worked a minimum of 48 hours in a week. It was also mentioned that the 3 to 4 days off I took were on a courtesy basis and not mandated by the act, hence not entitled to a weekly off.

I seek advice on how to handle this situation effectively.

Best Regards,
Naga Raju

Dear Naga Raju,

The rule of HR regarding weekly offs is correct. The term itself, "weekly off," signifies a day off after working for a week. Most companies adhere to the practice of considering the day preceding the leave and the day following the leave as part of the leave period. In other words, if an employee takes leave on Saturday, then Sunday and Monday are also considered as part of the leave period.

Thank you.

If an employee takes leave on Saturday and Monday, Sunday also counts as leave. But when I take leave from Monday to Friday, why are Saturday and Sunday counted as leave? Saturday and Sunday are days when the office is closed.

Dear Mr. Nagaraju,

Please refer to the Tamil Nadu Shops & Commercial Establishments Act and Rules for clarity. On 02/10/2017, there was a paid holiday in observance of Gandhi Jayanthi. The week began on 02/10/2017 (Monday), and throughout the entire week, you were not present. As a result, you are not entitled to the weekly holidays/off days, namely Saturday and Sunday.

Interpretation of HR Policies

The interpretation of HR appears to be incorrect. In Section 11(2), the TN Shops & Establishment Act contemplates employment for a total period, including authorized leave, to be six days. What is required is the period of employment in the week, and it is not actual working. So the two cannot be interchanged.

It cannot be denied that the querist was employed on 1st/2nd October and continued to be so during the entire week, including sanctioned leave from 3rd-6th October. So there is a strong case in your favor, and the deduction of two days of additional leave is entirely unwarranted and improper, violating Section 11(2) of the TN Shops & Establishment Act.

Understanding the Leave Deduction Issue

What I understand from the post is that the company is an "establishment" under the TNSE Act, 1947, and the individual has taken leave (though the type of leave is not mentioned) for 4 days from 3-10-2017 to 6-10-2017. However, the HR department treated it as 6 days, including the 7th and 8th of October '17, which are the weekly holidays for the establishment. This action is objected to by the individual.

The establishment follows a 5-day week from Monday to Friday, with Saturday and Sunday being holidays common to all employees. Therefore, no employee in the establishment can work for a minimum of 48 hours or 6 days in a week, as contended by the HR. I believe the HR might have confused "weekly-off," generally followed in a 7-day working establishment on a rotation basis, with the "weekly holiday" in a 5 or 6-day working establishment. A weekly-off presupposes that the employee should have worked for the preceding 6 days, including authorized leave, if any, to avail of the 7th day as the off. In an establishment adopting a 5-day week, the rider clause in sec.16(1) of the TNSE Act, 1947, cannot be applied either generally or selectively.

Even if it is contended that the employee should have worked for a minimum of 5 days or 40 hours in the week to avail of the weekly holidays, it would be applicable only in respect of unauthorized absence and not in the case of duly sanctioned leave, as the proviso includes the authorized leave in the minimum days worked. I also think that, taking a cue from the moratorium on deduction of wages imposed by sec.16(4) of the Act, the HR adjusted the two days as leave.

I, therefore, concur with the view of Mr. KK!HR.

One correction please - the word "including" in the 5th line of my reply may please be read as "excluding."

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Thank you for reaching out with your correction request. I have noted the change from "including" to "excluding" in the 5th line of your reply. If you need any further adjustments or have additional feedback, feel free to let me know. I'm here to ensure the accuracy and clarity of your message.

Dear Mr. Nagraj,

The leave period of 2 days appearing as a weekly off day should not be considered as leave since it does not fall in between. This is an erroneous decision on the part of your HR. Please check the leave rule of the establishment and the description under the standing order, if any.

Regards