Floating holidays: Overview, definition, and example
What are floating holidays?
Floating holidays are paid days off that employees can use at their discretion, often in place of fixed company holidays. Unlike standard holidays, which are observed on specific dates (such as Christmas or Independence Day), floating holidays allow employees to choose when they take time off, accommodating personal, cultural, or religious preferences.
For example, a company may offer two floating holidays per year, allowing employees to use them for a religious holiday not recognized by the company or a personal event.
Why are floating holidays important?
Floating holidays provide flexibility and inclusivity, allowing employees to take time off when it best suits them rather than adhering to a fixed holiday schedule. This helps accommodate diverse cultural and religious observances while maintaining workplace productivity.
For businesses, offering floating holidays can improve employee satisfaction, attract diverse talent, and promote a more inclusive work environment. It also helps manage scheduling by reducing the number of employees taking time off on the same fixed holidays.
Understanding floating holidays through an example
Imagine a company with a diverse workforce that offers one floating holiday per year. An employee who does not celebrate Thanksgiving chooses to work that day but later takes a floating holiday to observe Diwali, a holiday that is important to them.
In another example, a working parent uses a floating holiday to attend their child’s first day of school, providing the flexibility to take time off for personal priorities without using vacation or sick leave.
An example of a floating holidays clause
Here’s how a floating holidays clause might appear in an employee handbook:
“Employees are entitled to two (2) floating holidays per calendar year, which may be used at their discretion with prior manager approval. Floating holidays do not carry over to the following year and must be used within the calendar year.”
Conclusion
Floating holidays give employees flexibility to take time off for personal, cultural, or religious reasons, offering an alternative to fixed company holidays. They enhance work-life balance, promote inclusivity, and provide scheduling flexibility.
For businesses, offering floating holidays improves employee satisfaction, attracts a diverse workforce, and ensures fairness in holiday scheduling, making them a valuable part of workplace benefits.
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.