Floating holiday

What is a floating holiday?

There are two general meanings to a floating holiday. One definition describes it as a public holiday that doesn’t land on the same day every year. The other, more business-centric definition is a paid time-off employees can use as a substitute for a public holiday. Here, employees get the flexibility to choose which days they want to take an off at their own discretion. Floating holidays encourage flexibility, promotes a healthy work-life balance, and boosts company morale.

When can a floating holiday be used?

A floating holiday accommodates for employees’ diverse needs and interest. Some use floating holidays to observe their religious or cultural practices, while others take them for special occasions like birthdays and weddings. The reasons could be aplenty.

Some companies allow employees to choose their floating holidays from a list of cultural, religious, and governments holidays and events provide by the organization. Employers may need to designate certain days on which employees can and cannot avail their floating holidays.

The floating holiday policy

In order to enable employees total advantage of their floating holiday and prevent misunderstandings and abuse, companies that offer them should establish a policy about its use. It should include:

1. The availability of floating holiday through the entirety of the year.

2. The status of its availability to both full-time and part-time employees.

3. How far in advance a floating holiday must be scheduled and approved by the manager.

4. How long before new hires can qualify for the floating holiday.

5. Other restriction on how or when a floating holiday may be used.


Floating holidays are an important benefit that employers can provide to employees to show that they care about their well-being and their lives outside of work. They are an effective way to boost employee morale and retain talent.



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