Statutory holidays: Overview, definition, and example
What are statutory holidays?
Statutory holidays are public holidays established by law, during which employees are generally entitled to take the day off with pay. These holidays vary by country, region, or state and are often associated with cultural, historical, or religious events. In some cases, if employees are required to work on a statutory holiday, they may be entitled to additional pay or time off in lieu.
Why are statutory holidays important?
Statutory holidays are important because they provide employees with guaranteed time off to rest, celebrate, or observe significant events. For businesses, adhering to statutory holiday regulations is a legal requirement and supports employee satisfaction and morale. Noncompliance with statutory holiday laws can lead to legal penalties or strained employee relations, making it essential for businesses to understand and follow applicable rules.
Employers who go beyond the minimum statutory requirements by offering additional paid holidays or flexibility may also find it easier to attract and retain talent.
Understanding statutory holidays through an example
Imagine a retail store operating in Canada, where employees are entitled to paid time off on statutory holidays like Canada Day (July 1) and Thanksgiving (second Monday of October). If an employee works on Canada Day, the store is required to pay them at least 1.5 times their regular wage or provide an additional paid day off.
In another example, a U.S.-based company observes federal statutory holidays, such as Independence Day (July 4) and Thanksgiving Day (fourth Thursday in November). Employees are given the day off with pay. If the business needs coverage on these days, they offer double pay as an incentive to those who volunteer to work.
An example of a statutory holidays clause
Here’s how a statutory holidays clause might appear in an employee handbook:
“The Company observes the following statutory holidays: [List of Holidays]. Employees scheduled to work on a statutory holiday are entitled to [overtime pay/time off in lieu] in accordance with applicable labor laws. Eligibility for statutory holiday pay requires the employee to meet attendance and scheduling requirements as outlined in company policy.”
Conclusion
Statutory holidays ensure employees have time to rest and observe important cultural or national events while providing legal protections for their rights. For businesses, complying with statutory holiday laws helps avoid legal risks and fosters a positive workplace environment. Including a clear statutory holidays policy in employee handbooks ensures transparency and compliance with labor regulations.
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.