Designated paid holidays: Overview, definition, and example
What are designated paid holidays?
Designated paid holidays are specific days during the year that an employer recognizes as holidays, during which employees are given paid time off. These holidays are typically outlined in an employment contract or company policy and include widely recognized public holidays, such as New Year's Day, Thanksgiving, and Christmas. Employees are paid their regular wages or salary for these days off, even if they are not required to work. In some cases, employers may offer additional holidays beyond the legal minimum, depending on the company culture or industry.
For example, a company may designate national holidays like Independence Day and Labor Day as paid holidays, ensuring employees do not lose wages for taking those days off.
Why are designated paid holidays important?
Designated paid holidays are important because they provide employees with time to rest, recharge, and celebrate important cultural, national, or religious events without the financial burden of losing income. For businesses, offering designated paid holidays is a key element of employee benefits, helping to promote work-life balance and boost employee morale. It also ensures that employees have the opportunity to take part in holidays and traditions that may be important to their well-being.
For employees, designated paid holidays contribute to job satisfaction and a positive work environment, while for employers, offering paid holidays is a way to attract and retain talent, reduce burnout, and maintain high levels of employee engagement.
Understanding designated paid holidays through an example
Let’s say a company offers a total of 10 designated paid holidays each year, which include New Year’s Day, Memorial Day, Labor Day, Thanksgiving, and Christmas. An employee working at this company can take these holidays off without worrying about missing a paycheck. If the employee decides to take off Christmas, they will still receive their regular salary for that day, as the company recognizes it as a designated paid holiday.
In another example, an employer may choose to offer additional paid holidays, such as "Mental Health Day" or "Company Anniversary Day," as part of their benefits package to promote employee well-being and engagement.
An example of a designated paid holiday clause
Here’s how a designated paid holiday clause might look in an employment agreement:
“The Company recognizes the following days as designated paid holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas, and any other holidays as determined by the Company. Employees who meet eligibility requirements will receive their regular wages for these days, provided they do not work on these holidays. Additional holidays may be granted at the discretion of the Company.”
Conclusion
Designated paid holidays are an important aspect of employee benefits, providing employees with the opportunity to take time off without losing income. They help maintain a positive work culture, improve employee morale, and contribute to overall well-being. For businesses, offering designated paid holidays can be a valuable tool in attracting and retaining skilled workers, while also fostering a supportive and balanced work environment.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.