Salary Computation Confusion: Should Sundays Be Counted as Paid Days? Seeking Advice and Documentation

Dear Experts at CiteHR,

We have a tricky situation and need a resolution for the following scenario.

Salary Computation Issue

One candidate joined our company on the 2nd of May 2022, with a monthly remuneration in the Middle Management Group. Now, at the completion of the month, the HR department computed his salary and paid him one day less. He believes that HR might not have considered Sunday, 1st May, as he's entitled to a paid holiday. The employee's concern reached my desk, and I expect a satisfying and convincing solution to protect both the employee and the HR department and to impart a lesson learned from such a situation.

Request for Assistance

I will be happy to receive:

- Help on the monthly computation of salary by our team with reasoning to support HR in this regard.
- Consideration of paid Sundays in our scenario.
- For the paid Sundays, a supporting regulatory document that can confirm that Sundays have to be considered in the final payment. (Please note, 1st May was a Sunday in May 2022)

Computation of Salary for a Newly Joined Employee

The computation of salary by your HR department for the newly joined employee is perfectly okay. All weekly off days (Sundays, for that matter) are paid holidays for a monthly-rated employee. However, the said employee joined services with your company on the 2nd of May 2022. In this situation, why should your company pay him for the 1st of May 2022?

I think that the observation of Mr. Nair cannot be refuted.

Commencement of Employee Service

The service of an employee in an organization commences only on the exact date of his joining, and he is entitled to the benefits of employment like holidays, leave, or salary only from the date of his joining, irrespective of the mode of payment. Just because he is hired on a monthly salary basis, the employee cannot claim any benefits retrospectively prior to his actual date of joining. Like salary, the right to enjoyment of a weekly holiday also accrues proportionately since the date of joining only. The situation explained is self-explanatory on a common-sense basis, and as such, no other proof is required.

Misunderstanding of the Factories Act, 1948

I also think that probably the newly joined employee might have based his contention on the wrong understanding of the provisions of Section 52(1) of the Factories Act, 1948. Even otherwise, the noteworthy feature of the weekly off under the Factories Act, 1948 is that it is not a paid holiday.

Sarvashri Nair and Umakanthan Jee have provided detailed responses to your query. I'd like to know the exact wording of his offer letter out of curiosity. If his offer letter states that you will join us on or before May 1, 2022, he is eligible for a full month's salary because his position is that he would have joined on May 1, but your office was closed. Kindly verify.

Regards,
Suresh

Thank you very much for the detailed response. This will definitely be helpful for HR and the employee to know the regulatory facts. Importantly, this will help the employee to start working without any doubts in his mind. Thanks once again.

I hope you mean the holiday as a day off or a weekly off.

In general, an employee is eligible for a weekly off if they work the entire week (5–6 days). The employee is not entitled if their resignation is accepted and they are relieved on the last working day before the holiday. It is recommended that the employee leave the organization after working at least one day immediately following the weekly off. The prefix holiday is not payable to the new joiner because they join the organization after the weekly off.

Regards,
Suresh

As the employee did not join your company on the 1st of the month, his appointment is from the 2nd of the month as per his appointment letter. Therefore, the HR Department has computed his salary correctly.

Better correlate this situation with his appointment letter/contract if issued. If he has been advised in writing to join duty on the first of May, he is eligible for one day's pay irrespective of the off-day.

If the letter/contract is silent or he hasn't been issued any such letter yet, he isn't eligible for pay for the first of May.

Dear Suresh Ji, My query is regarding the eligibility of an employee for payment if they join on the 2nd of May. How would they be eligible for payment for the 1st of May? Additionally, if an employee leaves the job just before a holiday, how can they avail of that holiday?

Thank you.