Suppose 7 & 8 November is Diwali holiday and an employee is on leave on 6 & 9 November, then will the salary be deducted for 6 & 9 (two days) or 6, 7, 8, 9 (four days)? I need a reference to the rules as well.
Leaves to be deducted are for 4 days as days before and after holidays are considered as leaves. "Sandwich leave" is the term used for such leaves. If an employee applies for leave days before and after holidays, then the entire period, including holidays, is taken as leaves. It also depends on the company policy, as mentioned by Mr. Shailesh Parikh, where only the leave applied is considered as Casual Leave.
Generally, companies tend to follow the sandwich rule; however, as per law, none of the paid holidays can be considered as leave or absence on the prefix and suffix dates if the employee has taken the leave. You can check the leave rule where you shall gain clarity on the same.
Leave policies vary from company to company. Diwali holidays are on the 7th and 8th, and if an employee takes leave on the 6th and 9th, whether it's approved or not, their salary would be deducted for four days.
The sandwich rule is not correct; however, it is not unlawful. Check your respective Shops and Establishment Act; in most cases, the SAEA states that paid holidays are not to be considered as part of loss of pay since they are already accounted for as paid holidays. In your situation, deductions should only be made for 6 and 9.
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