A company holiday policy tells employees which days they have off, how holiday pay works, and what happens when a public holiday falls during a leave period or on a non-working day. Without a clear policy, managers field the same questions every year, payroll makes inconsistent decisions, and employees feel like holiday entitlement is applied unevenly. This company holiday policy template gives HR teams a complete, editable framework to document holiday schedules, floating day rules, pay entitlements, and the procedures for managing holiday conflicts across teams.
A company holiday policy specifies the recognized public and company holidays during a working year, defines how employees are paid for those days, and establishes the rules for requesting, trading, or carrying forward holidays. It removes ambiguity from one of the most common HR questions employees ask.
Without a documented holiday policy, real problems emerge. Consider a company that has informally observed 10 public holidays for years but never written it down. When a new manager joins and schedules a mandatory meeting on a traditional company holiday, employees are frustrated and the manager is blindsided. A written policy eliminates that friction by making the rules consistent, visible, and enforceable across the organization.
A complete company holiday policy needs more than a list of dates. It requires the rules that govern how those dates apply to different employee types and situations.
Company Holiday Policy
Effective Date: [DATE]
Approved by: [NAME / TITLE]
Policy Owner: [HR DEPARTMENT]
Review Date: [DATE]
Version: [1.0]
Policy Brief and Purpose
[COMPANY NAME] is committed to providing employees with fair, consistent, and clearly communicated holiday entitlements. This company holiday policy establishes the recognized company holidays, eligibility criteria, pay entitlements, and procedures for managing holiday requests and conflicts. The goal is to ensure all employees understand their holiday entitlement and that it is applied equitably across the organization.
Scope
This holiday policy applies to all [full-time / part-time] employees of [COMPANY NAME] employed in [LOCATION]. [Note any groups with different arrangements, such as shift workers, employees under collective bargaining agreements, or employees in different jurisdictions with different public holiday schedules.]
Recognized Company Holidays
[COMPANY NAME] observes the following holidays for the [YEAR] calendar year:
[LIST DATES AND HOLIDAY NAMES — e.g.:
The annual holiday schedule is published by [HR / PEOPLE OPS] by [DATE, e.g., December 1] of the preceding year. [COMPANY NAME] reserves the right to amend the schedule where operational requirements or changes to public holiday legislation require it.
Floating Holidays
In addition to recognized company holidays, each eligible employee receives [NUMBER] floating holiday(s) per calendar year. Floating holidays may be used at the employee's discretion subject to manager approval and business needs. Floating holidays must be taken within the calendar year and do not carry over unless a written exception is approved by [HR]. Unused floating holidays are forfeited at year end.
Employee Eligibility
Full-time employees are entitled to the full holiday schedule and all floating days from their first day of employment. Part-time employees receive holiday entitlement on a prorated basis calculated against their contracted hours. Employees on fixed-term or temporary contracts are entitled to holidays that fall within their contract period. Contractors and freelancers are not entitled to paid company holidays unless expressly stated in their contract.
Holiday Pay
Eligible employees receive their regular base pay for recognized company holidays. Employees who work on a recognized company holiday will receive [BASE PAY PLUS PREMIUM, e.g., time-and-a-half or a substitute day off] in accordance with applicable law and [COMPANY NAME]'s overtime policy. Variable-hours employees receive holiday pay calculated in accordance with [applicable statutory formula / company formula as described in their employment contract].
Holidays Falling on a Non-Working Day
When a recognized company holiday falls on a Saturday, [COMPANY NAME] will observe the holiday on the preceding Friday. When a recognized company holiday falls on a Sunday, [COMPANY NAME] will observe the holiday on the following Monday. Employees who do not normally work on the day the holiday is observed will receive a substitute day off to be taken by mutual agreement within [X] months.
Holidays During Annual Leave
If a recognized company holiday falls within a period of approved annual leave, the holiday day will not be deducted from the employee's annual leave balance. The employee may take a substitute day off to be agreed with their manager.
Religious and Cultural Observances
[COMPANY NAME] recognizes that employees observe a variety of religious and cultural holidays beyond the standard company schedule. Employees may request to swap a recognized company holiday for an alternative religious or cultural observance by submitting a written request to their manager at least [X] days in advance. Requests will be considered based on operational requirements and will not be unreasonably refused. Employees may also use annual leave or floating holidays for observances not covered by a swap arrangement.
Holiday Requests and Blackout Periods
Employees must submit holiday requests through [COMPANY HRIS / SYSTEM] with [X] days' notice. Requests are approved at the manager's discretion based on team capacity and operational requirements. [COMPANY NAME] reserves the right to designate blackout periods during which holiday requests may be restricted, such as peak business seasons. Employees will be notified of blackout periods at least [X] weeks in advance.
New and Departing Employees
Employees who join [COMPANY NAME] after January 1 will receive a prorated number of floating holidays based on the remaining months in the calendar year. Employees who leave [COMPANY NAME] before year end will have their holiday pay reconciled in their final paycheck based on recognized holidays taken versus the prorated entitlement earned.
Employee Responsibilities
Manager and HR Responsibilities
Disciplinary Action
Employees who take unauthorized absences on or around company holidays, misrepresent holiday requests, or otherwise violate this policy may be subject to disciplinary action in accordance with [COMPANY NAME]'s disciplinary procedure.
Disclaimer
This template is a starting point and does not constitute legal advice. Holiday entitlements are governed by employment law in your jurisdiction. Consult an employment attorney or HR advisor before finalizing this policy.
Start by aligning your holiday schedule with your jurisdiction's statutory public holidays. The list in this template is a placeholder. Replace it with the actual dates for your country, state, or region, and verify them against official government sources each year.
Review your part-time proration calculation against your jurisdiction's statutory requirements before publishing. Several countries have specific statutory formulas for holiday entitlement that override employer discretion.
If you operate across multiple locations or countries, create jurisdiction-specific addenda rather than trying to combine different public holiday schedules into a single policy. Employees in London and employees in New York have different public holidays. One undifferentiated list creates confusion.
Address religious accommodations explicitly and generously. A brief, clear statement that employees may swap company holidays for observances that matter to them signals inclusion without requiring a separate policy document.
Build your blackout period notification process into your HRIS so managers have the tools to enforce it consistently and employees don't find out about restrictions at the point of submitting a request.
Q: What should a company holiday policy include?
A: A complete policy specifies the recognized holiday schedule for the year, eligibility criteria for different employee types, holiday pay calculation rules, floating or discretionary day entitlements, what happens when a holiday falls on a non-working day, procedures for requesting time off around holidays, and how unused days are handled at year end.
Q: Is a company holiday policy legally required?
A: Most jurisdictions require employers to provide statutory holiday entitlement and pay, but the format in which this is documented varies. In the UK, holiday entitlement details must be included in the written statement of particulars. In many US states, there is no mandatory public holiday requirement, but what you offer must be applied consistently and documented to avoid discrimination claims.
Q: How often should a company holiday policy be updated?
A: The core policy should be reviewed annually. The holiday schedule must be updated every year. Update the policy whenever there are changes to statutory holiday requirements, when your organization introduces new observances, or when feedback from employees surfaces consistent confusion about how the rules work.
Q: What happens if an employee violates the company holiday policy?
A: Taking unauthorized absence around holiday periods, submitting fraudulent leave requests, or refusing to work on days where business requirements require coverage despite advance notice are handled under the standard disciplinary procedure. Consequences scale with the severity and frequency of the breach.
Q: How do you communicate a new company holiday policy to employees?
A: Publish the policy in your employee handbook and HRIS at least 30 days before it takes effect. Send a direct communication from HR or leadership summarizing any changes from prior practice. For significant changes, hold a brief Q and A session. Require acknowledgment through your HRIS so you have a record of who has received it.
Q: Can a company holiday policy be customized per department?
A: Yes, particularly for shift-based or operational departments with different coverage requirements. The holiday schedule and entitlements should remain consistent, but blackout periods, shift coverage rules, and premium pay for working on recognized holidays may differ by function. Document departmental variations as addenda to the master policy.
Q: How should floating holidays be tracked and administered?
A: Track floating holiday balances in your HRIS alongside annual leave balances. Managers should be able to see remaining balances before approving requests. Set up an automated reminder in Q4 for employees who have unused floating days. Apply a consistent rule for year-end forfeiture versus carry-over and document it explicitly.
Q: What should we do if an employee wants to observe a holiday not on our schedule?
A: The most practical approach is a swap arrangement: the employee takes an alternative observance day and works on a standard company holiday. If swaps aren't operationally feasible, employees should be able to use annual leave or floating holidays. Either way, document the process in the policy so managers can apply it consistently without needing to escalate to HR for every request.