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Floating Holiday

What is a Floating Holiday?

A floating Holiday is a paid time off (PTO) or unpaid time off like extraordinary leave (EOL), depending upon your company policy, that an employee can utilize as a personal day off at any time of the year, that is it floats so as to when the employee wants, can avail that, the name is kept after this phenomenology.

Floating holidays per year is one or two vacation days/vacation time that can be both the paid day; and/or the unpaid one, apart from the regular state laws declared public holiday(s), sick days off, and the other employee leaves types like maternity or paternity, medical leaves, etc.  

When you offer one or two days as a floating holiday(s) to your employee(s) in a calendar year, you are actually offering them to possibly spend with family any religious holidays or cultural day which is not declared as a public holiday by the state laws.

Or you simply offer such time off, as paid holidays / PTO days, to your human resources either to make a flexible shift if required so at any point in time or just to relax at home for a day or two, to save the employees burnout (hence improve employee performance mindset) and maintain their work-life balance.

Is a floating holiday accumulated or applicable under encashment?

No is the answer to both aforementioned questions! And therefore it must be well kept in mind that the floating holidays neither extend and gets on to the next year's calendar additions -accumulation, nor does it has any encashment way-outs.

What is the difference between the Floating Holidays and the Vacation Days?  

Is it a legal requirement to provide a floating holiday?

No, it is not a legal requirement to mandatorily offer the provision of floating holidays to your employees unless labor unions, if any, had already bargained so with you being their employer.

What are the benefits of offering floating holidays?

Following are a few, but important, benefits of offering floating holidays to your employees:

      

What is important for you to devise a floating holiday policy?

When floating holidays pays you back with little negligible impact on your financials then you must consider the following strategies for designing such a policy:

You being an HR Expert must know that floating holidays have no strict policy regulations as such, therefore keeping in view your strategic goals on priority, you may take actions that must tailor the scenario to a win-win situation for you and your employees.

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