What Are Holidays?
Holidays, in an HR context, refer to designated non-working days — typically national, religious, or festival occasions — during which employees are entitled to paid time off, distinct from leave, which employees actively apply for and use from their personal leave balance.
Types of Holidays
- Mandatory/Gazetted holidays — legally mandated days off applicable across specific jurisdictions
- Restricted holidays — a set of optional festival days from which employees select a limited number
- Floating holidays — flexible days off employees can use at their discretion on any date
Legal Basis for Holidays in India
Holiday entitlements are governed by respective State Shops & Establishments Acts, the Factories Act, 1948, and the National and Festival Holidays Act (in states where applicable), which mandate a minimum number of paid holidays employers must provide, though the specific number and applicable dates vary by state.
Holidays vs Leave — Key Distinction
Holidays are pre-determined, company-wide non-working days applicable to all (or most) employees uniformly. Leave (Casual, Earned, Sick) is individually applied for and deducted from a personal leave balance, used at the employee's discretion for personal reasons beyond the fixed holiday calendar.
How HR Manages Holiday Compliance
- Publishing a location-specific holiday calendar compliant with applicable state minimum requirements
- Ensuring holiday pay and compensatory arrangements are correctly processed for employees required to work on a designated holiday
- Regularly reviewing and updating the holiday calendar based on any changes in state-notified holidays
Holidays: Frequently Asked Questions
What is the minimum number of paid holidays mandated in India?
Can a company deduct a holiday from an employee's leave balance?
This glossary entry is for general information and reflects common HR practice in India at the time of writing. Statutory thresholds, rates and deadlines change — verify against the latest official notifications or consult a qualified legal or tax advisor before acting.