Although there exists a "Working schedule" at the `hr_contract` module, that could be used to define the workweek and exclude "weekends" from leaves (the underlying business object is `resource.calendar`), the official `hr_holidays` module doesn't support excluding public holidays or weekends.
You can overcome the lack of "public holidays" by grouping employees by Tag and creating yearly allocations (by Employee Tag) and then registering/approving leave-requests (by Employee Tag as well) for these days. Public holidays are usually common to all employees but that might not be always the case. If employees observe different holidays, you can use different tags to group them before creating allocations. This idea is not new, it has been previously discussed here.
Excluding weekends (week days not part of the workweek) is harder because (1) you would require to repeat the above procedure to exclude each weekend, and, (2) it is more common to have employees with different workweeks in the first place.
Community addons have been developed to fulfill this requirement, I've just found the following one but is for v7.0 and I have never used it (having lot of dependencies increases chances of including broken modules), you may give it a try:
Just in case, this link contains references about the official `hr_holidays` module (somehow outdated):
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|Asked: 9/3/15, 9:27 AM|
|Seen: 766 times|
|Last updated: 9/4/15, 1:29 AM|