Legal holidays: Overview, definition, and example
What are legal holidays?
Legal holidays are days designated by law or government authorities on which businesses, institutions, and government offices are typically closed, and employees are usually entitled to a day off. These holidays are recognized by federal, state, or local governments and often commemorate specific historical, cultural, or national events. Legal holidays may vary depending on the country, region, or industry, and they are important for ensuring that employees have time off from work for rest, reflection, or celebration.
For example, in the United States, federal legal holidays include New Year’s Day, Independence Day, and Christmas Day.
Why are legal holidays important?
Legal holidays are important because they provide employees with designated time off, often with pay, and help promote work-life balance. They also serve as a means for recognizing significant cultural or historical events that have societal importance. For businesses, understanding and adhering to legal holiday schedules is essential for compliance with labor laws, and it helps ensure proper planning for staffing, operations, and payroll.
For businesses, it is crucial to know when legal holidays fall, especially for operations that rely on regular business hours, so they can prepare for closures or adjusted working schedules.
Understanding legal holidays through an example
Imagine a retail business that operates in a region where Christmas Day is a legal holiday. The business would be closed on Christmas Day, and employees who are scheduled to work on that day may receive holiday pay or be given the option to take another day off.
In another example, a company that is headquartered in California must be aware that the state observes certain holidays, such as Cesar Chavez Day, which may not be recognized as a federal holiday but is still a legal holiday in the state.
An example of a legal holidays clause
Here’s how a legal holidays clause might look in an employment agreement:
“The Employee shall be entitled to paid time off on all legal holidays as recognized by applicable federal, state, or local law. In the event that the Employee is required to work on a legal holiday, they shall be compensated in accordance with the company’s holiday pay policy.”
Conclusion
Legal holidays are essential for maintaining employee rights, offering time for rest, and recognizing cultural or historical significance. Businesses must comply with legal holiday schedules to ensure they respect labor laws and provide fair treatment to employees.
By including legal holiday clauses in employment contracts or business operations plans, businesses can manage staffing needs, ensure compliance, and improve overall employee satisfaction.
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.