How to Create Holiday Policies for Employees

It is very important to formally set down the holiday policy of a company so that there are no ambiguities among the employees and the policy remains to be a guideline for all future holiday matters. There are typically three kinds of holidays that need to be accounted for in the policy; government declared, company declared and accidental holidays. A good holiday policy deals with all the aspects of a holiday, including dates, conditions, pay decisions and the work replacement to keep productivity. It needs to be comprehensive with all the details so that it can be implemented in a practical way. Our step by step guide helps you create the general  holiday policy for your company.


  • 1

    Legal holidays:

    Depending on the country you live in, there are some national holidays that are implemented country wide. While  in some places private employers may not be legally bound to accede to these holidays, there are great social and ethical pressures to recognize them like the independence day. In the United States, all state run organizations and most private enterprises observe official holidays on New Year’s Day, Martin Luther King Day, President’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving Day and Christmas Day. The decision of observing depends on the legal restrictions and the business philosophy of the company.

  • 2

    Annual leaves:

    Many companies allocate a certain number of holidays for each employee annually. These can range from one week to up to four week. These leaves are paid for and the dates are agreed upon by mutual consent of the employee and the organization depending on work load and preference. An employee who does not avail these leaves is either asked to forcibly take them before year end or is paid for at the time of termination. Companies who give such holidays believe that rest and break from work is necessary to keep up the productivity levels. A discussion with your Human Resource department and higher management is going to help you set policies regarding these holidays.

  • 3

    Sick, accidental and personal holidays:

    You also have to decide the company policy for the holidays that are inevitable when an employer falls sick, meets an accident or going through any personal tragedy. Paid number of days can be allocated for it. If an employee crosses them, you can treat the rest as unpaid holidays so that they do not cost the company. These kind of holidays are also dealt on case to case basis.

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