Company Holiday Policy Template

Company holidays play a vital role in supporting employee health, work-life balance, and overall organizational culture. By providing time off for nationally recognized holidays—and optionally, company-specific observances—organizations show their commitment to rest, inclusivity, and employee morale.

A clear Company Holiday Policy ensures that everyone on the team understands which days are observed, how holiday pay works, and what happens when business needs require coverage. Whether your company closes entirely on holidays or offers flexible observance, this template will help you create a fair and transparent policy.

What a Company Holiday Policy Should Include

A well-designed holiday policy should cover:

• List of Recognized Holidays: A calendar of the specific holidays your company observes.
• Eligibility Criteria: Which employees qualify for holiday pay (e.g., full-time, part-time, hourly, contract).
• Holiday Pay Guidelines: Whether holidays are paid, and if so, how pay is calculated.
• Work on Holidays: Expectations for employees scheduled to work on holidays and applicable pay differentials.
• Floating Holidays or Personal Days: Whether employees can substitute holidays for others that are more meaningful to them.
• Religious and Cultural Observance: Information about how the company accommodates other cultural or religious holidays.
• Holiday Scheduling: Guidance around requesting time off adjacent to holidays (e.g., long weekends, holiday travel).
• Business Needs and Exceptions: Clarification about departments that may operate on holidays (e.g., customer support, IT).
• Carryover or Expiration: Whether floating holidays expire if unused.

Purpose of This Policy

The purpose of the Company Holiday Policy is to clearly outline which holidays are observed by the organization, promote fair and consistent practices across departments, and foster a culture of inclusion and rest. By formally documenting holiday benefits, companies can reduce confusion, accommodate diverse needs, and ensure that all employees feel respected and supported.

Sample Company Holiday Policy

{{rich-highlight-1}}

1. Policy Overview

At [Company Name], we believe time away from work is essential to employee well-being and overall performance. We observe a number of paid holidays throughout the calendar year and offer flexibility to accommodate diverse cultural, religious, and personal observances.

This policy outlines the holidays recognized by [Company Name], the expectations for work on holidays, and how holiday time off is managed across the organization.

2. Recognized Company Holidays

[Company Name] will observe the following paid holidays each year:

• New Year’s Day
• Martin Luther King Jr. Day
• Presidents’ Day
• Memorial Day
• Juneteenth
• Independence Day
• Labor Day
• Indigenous Peoples’ Day
• Veterans Day
• Thanksgiving Day
• Day After Thanksgiving
• Christmas Eve
• Christmas Day
• New Year’s Eve

If a holiday falls on a weekend, [Company Name] may observe the holiday on the preceding Friday or following Monday. The official holiday calendar for the upcoming year will be published each December.

3. Eligibility

The following employees are eligible for paid company holidays:

• Full-time, regular employees (salaried or hourly)
• Part-time employees regularly scheduled to work on the day a holiday falls (holiday pay will be prorated)
• Temporary or contract workers are not eligible unless stated in their employment agreement.

Employees must be actively employed and not on unpaid leave at the time of the holiday to receive pay.

4. Holiday Pay

Eligible employees will receive their regular rate of pay for scheduled holidays. Employees who are non-exempt (hourly) and required to work on a holiday will receive:

• 1.5x their regular hourly rate for all hours worked on the holiday
  OR
• A substitute day off with regular pay, to be used within 30 days (manager approval required)

Exempt employees who work on a holiday will not receive additional compensation but may request a substitute day off, subject to approval.

5. Working on a Holiday

Certain departments that support 24/7 operations (e.g., IT, customer support) may require staffing during holidays. In such cases, managers will schedule employees fairly and with as much advance notice as possible. Employees who are required to work on a holiday will be compensated per the guidelines above.

If you are unable to work a scheduled holiday shift, please notify your manager as soon as possible.

{{rich-highlight-3}}

6. Floating Holidays and Personal Observances

[Company Name] recognizes that our team is diverse and that not all employees observe the same holidays. To support this:

• All employees receive [1–2] floating holidays per calendar year to use for religious or cultural observances, birthdays, or other personally significant dates.
• Floating holidays must be requested and approved through [HRIS system or manager] and should follow the same process as PTO.
• Floating holidays do not carry over to the following year if unused, unless required by local law.

Employees are also encouraged to speak with their manager or HR if they would like to observe a religious or cultural holiday not listed. Reasonable accommodations will be made whenever possible.

7. Holiday Scheduling Guidelines

Employees planning to take additional time off before or after a company holiday (e.g., long weekends, holiday travel) should submit PTO requests as early as possible. While we strive to be flexible, requests will be approved based on team needs and business coverage.

Managers may implement blackout periods during peak business times if necessary, but should communicate these windows in advance.

8. Business Needs and Exceptions

While [Company Name] generally closes on designated holidays, some functions may require minimal staffing. In such cases:

• Managers will rotate schedules fairly
• Advance notice will be provided
• Employees may receive substitute time off if they are required to work

Employees should confirm expectations with their department head if unsure about holiday coverage.

9. Religious Accommodation

In accordance with applicable laws, [Company Name] will make reasonable efforts to accommodate employees who wish to observe religious holidays that are not recognized as company holidays. Employees must notify HR or their manager in advance and may be required to use a floating holiday or PTO.

We are committed to fostering an inclusive environment and welcome open communication about accommodations.

10. Policy Administration

This policy is maintained by the People & Culture team and reviewed annually. Any updates to the holiday schedule or changes in policy will be communicated through email and posted in the Employee Handbook.

Questions about holiday eligibility, pay, or accommodations should be directed to [HR contact or HR email].

Frequently Asked Questions

What happens if a holiday falls on a weekend?
[Company Name] will generally observe the holiday on the nearest weekday. For example, if Christmas Day falls on a Saturday, we may observe the holiday on Friday, December 24.

Can I substitute a company holiday for a different one I observe?
If your holiday observance is not listed, you may use a floating holiday or PTO. Please notify HR or your manager in advance so we can support your observance.

Do unused holidays carry over to the next year?
Company holidays are fixed and do not carry over. Floating holidays also do not roll over unless required by law or specified in your employment agreement.

Do I get paid for a holiday if I’m on leave?
If you're on paid leave (like vacation or parental leave), you’ll still receive holiday pay. If you’re on unpaid leave, you may not be eligible—check with HR for details.

Are contractors or interns eligible for holiday pay?
Typically, no. However, exceptions may be made based on individual agreements or state laws. Confirm your eligibility with your manager or HR.

{{rich-highlight-2}}