Company Holiday Policy Template

This generic Company Holiday Policy Template can be used and customized to clearly explain your company’s policies and procedures relevant to holidays, overtime and related compensation. It should be adapted to your company’s specific needs and circumstances and tailored in accordance with your national (or state, territorial or provincial) laws.

Policy Purpose and Application

A standard policy enables consistent interpretation by all employees and their supervisors, particularly Human Resources (HR). The purpose of our company holiday policy is to outline the days of the year that are recognized by the company as holidays and furnish more guidelines for holiday pay or exemptions.

This policy applies to all [Company Name] employees except those covered by a collective bargaining agreement. The policy will separately discuss provisions of exempt or non-exempt status.

Policy Highlights and Components

This policy can be summarized under the following components:

The Holidays That We Recognize

  • [New Year’s Day]
  • [Martin Luther King Day]
  • [President’s Day]
  • [Good Friday and Easter Monday]
  • [Memorial Day]
  • [Independence Day]
  • [Labor Day]
  • [Columbus Day]
  • [Veterans’ Day]
  • [Thanksgiving Day and the day after]
  • [Christmas Eve and Christmas Day]
  • [Christmas Day and Boxing Day]
  • [Queen’s Birthday]
  • [ANZAC Day]

These holidays are off-days for the majority of employees except those in essential service roles whose operations cannot be suspended at any given time.

Holidays that fall on a non-working day are compensated with the next closest business day. A floating day is offered by the company to enable individual employees to take as a holiday at their convenience. Each employee is entitled to one floating day per year but unused floating days are not carried forward.

An employee who is unable to rest on a holiday due to official engagement will be allowed to take the day off on a substitute date acceptable to their line managers.

All communication and data management regarding off days and public holidays are vested within HR, who are mandated to supervise and issue guidelines through direct communication with employees

Official Duty on a Holiday

Working on a holiday becomes necessary from time to time depending on the department and the importance of the employee’s services to the company. When such need arises, the company will:

  • Inform the affected employees in advance that they are expected to work on holiday so that they can plan their time appropriately. We shall endeavor to give at least one week’s notice unless it’s an emergency.
  • Offer the affected employee compensation with an additional day off that is redeemable within the year.
  • Pay non-exempt employees their regular hourly rate with a premium. If non-exempt employees are required to work overtime, they will be paid the established overtime rate for extra hours worked.
  • Make a decision on overtime entitlement and amount based on the number of hours worked during the holiday.

Guidelines on Holiday Pay

For all holidays observed by the company, exempt employees are entitled to full pay even if they don’t work on the holidays. Whereas part-time employees’ pay will be determined by the number of hours they have worked during the holiday.

Permanent and non-exempt employees who have served for more than three months will be entitled to holiday pay besides their regular compensation. However, part-time non-exempt employees are not entitled to holiday pay.

Holiday Pay for Staff on Leave

A holiday often falls on a period when an employee is on legitimate leave. In which case they will be paid the amount they are entitled to under normal circumstances, as long as they are on pay status. In case the employee is on non-pay leave for one reason or the other, they will forfeit the holiday pay.

Holiday Due to Religion

Our company upholds the principles of non-discrimination on religious beliefs and will support employees who may wish to have religious holidays separate from the observed state and national holidays. Such leave, however, is unpaid and must be at the discretion of the company which must not be allowed to suffer hardship as a result.

Employees will always be encouraged to use their floating day or normal time-off for religious holidays as much as practically possible. Permission and arrangements for such leave will be granted by HR and employees are always welcome to seek guidance on what possibilities exist for their plans.

Download this policy sample:

Google Doc – Letter
PDF Document – Letter (.pdf)
Microsoft Word – Letter (.docx)
OpenDocument Format – Letter (.odt)
Rich Text Format – Letter (.rtf)
Plain Text – Letter (.txt)
Google Doc – A4
PDF Document – A4 (.pdf)
Microsoft Word – A4 (.docx)
OpenDocument Format – A4 (.odt)
Rich Text Format – A4 (.rtf)
Plain Text – A4 (.txt)

Disclaimer: This information is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor World Manager will assume any legal liability that may arise from the use of this information.

The best companies use World Manager to train staff, maintain standards, and set the company up on the road to success.