Is It Fair for Management to Deduct Sunday Pay if You Take a Day Off During the Week?

Dear HR Friends, I hope you are all well. In my company, management is suggesting deducting Sunday's salary if an employee takes one leave in a week. Is that correct? Please advise.

Hi, if Sunday is the declared week off, then it is incorrect. By the way, are your employees not eligible for any leave?

Hi, then you need to follow the leave rules stipulated by the Factories Act.

As per the provisions of Sec. 79 of the Factories Act, on completion of 240 workdays, the employee will become eligible for 1 day of earned leave for every 20 days worked (one day for every twenty days of work performed by the employee during the previous calendar year).

Standing Order is different. Please refer to the Factories Act for further clarifications.

Being a proprietary organization does not exempt you from labor laws. Is this Sunday without pay rule applicable only for those who didn't work for 120 days in the organization?

Understanding Leave Policies

As per the Minimum Wages Act, Payment of Wages Act, Factory Act, and Shop Act, you have to allow one day's paid leave if the person has worked for six days. So, you cannot do what you are thinking of doing. You can only deduct pay for the absent day if the employee does not have a leave balance carried forward.

Hi,
Deducting Sunday salary if an employee takes one leave in a week might not be legally compliant, depending on labor laws and regulations in India. Here are some key points to consider:

Indian Labor Laws

Weekly Holiday:
The Factories Act, 1948, mandates that workers should have at least one day off in a week. Generally, Sunday is considered a weekly holiday. The Shops and Establishments Act in various states also stipulates a weekly holiday. Tamil Nadu's Shops and Establishments Act, for instance, typically follows similar principles.

Leave Policies:
Paid leaves, such as earned leave, casual leave, and sick leave, are usually part of the employment benefits. Deducting a weekly off (like Sunday) because an employee took a leave during the week may contravene these laws and be deemed unfair labor practice.

Legal Implications
Factory Workers: If your company is registered under the Factories Act, deducting salary for a Sunday due to a leave taken during the week might violate the provisions of the Act regarding weekly holidays. Office Employees: If your company is governed by the Shops and Establishments Act, this practice might similarly be illegal.

Best Practices for Employers
Consult a Labour Law Expert: Before implementing such policies, it's crucial to consult with a labor law expert or legal advisor to ensure compliance with the relevant laws and regulations.

Review Company Policies: Align your company's leave and salary policies with legal requirements and industry standards to avoid legal complications and ensure fair treatment of employees.

Steps to Take
Check Company Policy: Review your company's existing leave and salary policies to see if there's any provision for such a deduction.

Seek Clarification: If the policy is unclear, seek clarification from your HR department or management.

Consult Legal Advice: If you believe the policy is unfair or illegal, consulting a labour law expert or an attorney might be beneficial.

In summary, while each company can have its internal policies, they must comply with the national and state labor laws in India. Deducting a Sunday salary for taking a leave during the week might not be legally justified, so it would be wise for your company to review this practice in light of legal guidelines.

Thanks.