The guide
Everything you need to know about the holiday policy
What Is a Holiday Policy?
A holiday policy lists the paid public and company holidays employees observe and explains how holiday time is handled. It clarifies which days are paid, how holidays affect scheduling, and what happens when a holiday falls on a weekend or during other leave. The policy gives everyone a shared calendar of closures and sets consistent rules for pay, substitutions, and work performed on holidays.
Why Companies Need a Holiday Policy
A written holiday policy prevents confusion about which days the business is closed and who gets paid for them. It helps managers plan coverage for roles that must operate on holidays and ensures premium or overtime pay is applied consistently. Clearly listing observed holidays also supports fairness across a diverse workforce and lets employees plan personal time around a predictable, published schedule.
What a Holiday Policy Should Include
List the specific paid holidays for the year and state eligibility, including part-time and probationary staff. Explain how holiday pay works, what happens when a holiday lands on a weekend, and any premium pay for working on a holiday. Address floating holidays for religious or personal observances, how holidays interact with PTO, and coverage expectations for teams that operate on closure days.
