Floating Holiday | What is a Floating Holiday at Work?

What is a Floating Holiday at Work?

The floating holiday can be described as a holiday that employees can use at their leisure and not be tied to fixed holidays, such as Thanksgiving or Christmas, that the employer decides on. Employees can take time off to attend personal events such as religious celebrations, personal reasons, or other occasions that are not included in the officially approved holiday calendar.

Here’s how floating holidays typically work:

Flexibility: The employee may select when they want to take a floating vacation, generally during the calendar year. Certain businesses may have specific rules on what and when they should be taken.
Personalized: Time off allows employees to celebrate holidays and occasions that are important to their personal interests but are not considered corporate holidays.
Accrual and End of Term: Certain businesses permit floating holidays to accumulate over time, whereas others might require that they be utilized within a specified time frame (e.g., the annual calendar) or cancelled.
Diversity: Floating holiday days can be an opportunity to accommodate an array of employees by acknowledging that different employees have different holidays or require time off for different personal reasons.

How Does a Floating Holiday Work?

Floating holidays give employees the flexibility of time off and allow them to decide when they’d like to use the days rather than committing to a set holiday schedule.

Here’s how floating holidays typically work:

Allocation

Annual allocation: Employees are usually provided with a specific number of floating holidays each year, which could be one or two days, according to the company’s policy.
Pro-rata Basis: If employees join at the midpoint of the year, their floating holidays may be prorated according to the Time remaining throughout the year.

Eligibility

Instant eligibility: Certain employers allow employees to take advantage of floating holidays right after hiring.
The Waiting Time: Other companies may have an extended waiting period that includes completing a probationary period prior to employees being able to use the floating holiday.

Usage

Employee discretion: Employees are entitled to make use of the floating holiday for any purpose, including private events, religious celebrations, or other important holidays that aren’t covered under normal holidays.
Approval Process: Although employees decide when they will take a vacation, they typically have to seek approval from their boss before taking vacation days. This will ensure that the absence does not disrupt the work.

Expiration

Use it or lose it: In several companies, floating holidays must be utilized during the calendar year, or else they’re forfeited.
Transfer: Certain businesses may allow floating holidays to be carried over into the next year. However, this is less common.

Accrual

Fixed Allocation: Most businesses provide floating holidays in the form of a fixed number of days at the start of each year.
Accrued over time: In certain cases, floating holidays can be all-year-long holidays.

Impact on Other Leave

Separate from PTO: The floating holidays are generally separate from paid time Off (PTO) and vacation days. They also provide additional benefits.
Combination Leave Pool: In certain companies, floating holidays can constitute a pool of leave that is combined with personal or vacation days, which allows for greater flexibility in how time off is controlled.

Pay Out

There is no payout: The rule is that floating holidays cannot generally be paid if they’re not used before the year ends or after termination of employment, unless they are required by state law.
Payout in Certain Cases: In some jurisdictions, or as per specific company policies, unused floating holidays could be paid out at the end of the holiday.

Holiday Selection

Religion or Culture Respect employees may choose to use floating holidays to celebrate religious and other cultural holidays that are not regarded as corporate holidays.
Personal milestones: Floating holidays are also a great way to commemorate personal milestones or important events like birthdays, anniversary celebrations, or family gatherings.

Documentation

Tracking Use: Companies generally have a system in place for monitoring when floating holidays are used and ensuring that employees don’t exceed the number of days they are allowed to take.
Policy clarity: A clear explanation of the company’s floating holiday policy is crucial to ensure employees know the best time and place to use those days.

Floating holidays allow flexibility and inclusion in the workplace, assisting employees in managing their professional and personal lives in accordance with their desires and needs.

Can You Use a Floating Holiday Anytime?

It is possible to take floating holidays at your discretion; however, generally, it requires approval from your supervisor and must comply with the company’s policy. Certain companies may impose restrictions regarding when floating holidays can be used, particularly when there is a lot of activity or crucial projects.

Also See: Holiday Pay