Do not get confused with the mandatory holidays and the holiday benefits given (CL) to the individual employees..... As per law it will not be clubbed together...... government holiday is different (intended by the government on which neither the employer nor the employee have control over on its declaration) , leave for which employee applies is different (beneficiary leaves granted to the employees under law as well as as per the company policy), and weekly holidays are different (one week day is mandatory as per the law and other is provided under the policy, hence both as per law and company policy)..... Hence, you may go through the company policy once to be cleared on the days for holidays and inform all your employees regarding the Leave benefits..... Try to prepare a Calender and mark those days indicating government holidays, holidays provided under the company policy.... except in other exceptional cases like during bandh, strikes etc. only those days marked on the calender would be considered........ other than those, leaves taken by the employees goes to their accounts.........
And, regarding the previous confusions, if the majority of employees have already taken such benefit then you may ignore discussing it with your superior, ........if there are very few employees who'd confused then you may clear regarding the leave policy, and issue them the notice for the purpose of clarification and for future references......... and if the company indeed undergoes losses because of those leaves (in case of the majority employee confusion), you may some amount from the pay or just pay the basic or may decide upon any adjustments, keeping in the mind that both the parties were at fault and were ambiguous regarding the leave policy and would be benefited with such adjustments.........