Floating holidays are additional days off that employees can use at any time for various reasons. Public holidays occur on fixed dates, while floating holidays are flexible. Depending on their circumstances, an employee may take floating holidays for personal, cultural, or religious reasons. Floating holidays are special in that employees are not restricted to taking leave on a specific day on the calendar. The value of floating holidays is that employees are able to determine when they need a break from work, and they are a great complement to traditional leave entitlements. Floating holidays are a great option to add to traditional leave benefits.
Floating holidays are subject to eligibility requirements, which can vary according to the company policy. In most situations, the full-time employee becomes eligible after completing the probation period, while the part-time employee will likely receive a prorated benefit. As for contractors and temporary employees, they may not be included in the floating holiday benefits package, but some employers have included contractors and temporary employees as an option in their floating holidays. Employees should be given information to recognise the eligibility rules, so they have a clear understanding of when and how to ask for a floating holiday without confusion.
HR departments must keep in mind clarity, equity, and inclusivity when developing a floating holiday program. Any well-crafted floating holiday policy should clearly define the number of floating holidays, approval processes, and restrictions on carryover. Employers will need to find the right balance between providing employee choice and absences when looking at the necessary guidelines, such as when considering peak work times, etc. When floating holidays are offered as an employee benefit in the right way, they become a great benefit to employees and still allow the workplace to be operationally efficient.
A Floating Holiday is a day off (paid or unpaid) that an employee can use at their discretion, when the organisation is not observing an official holiday or a national holiday. A floating holiday is considered a floating day because an employee gets to determine when to take the floating holiday based on their own needs or preferences.
Floating Holidays aim to provide a flexible method of managing leave with practical application. For example, an organisation may not shut down for a festival, but employees who observe the festival have the option of taking a floating holiday to observe it. The floating holiday avoids a conflict of rights or at least ensures respect is given to differences in culture and personal choice.
Floating Holidays also facilitate practical needs. For example, some employees may want to take time off for their birthday, anniversary, or for other family obligations that they feel are important. Instead of relying on their vacation day account, they have the option of using a floater leave, which alleviates pressure from their regular paid time off.
From the perspective of the company, floating holidays may help to increase employee satisfaction and reduce absenteeism . By providing flexible holidays, companies indicate that they value their employees' personal lives, and this often leads to more employee engagement and loyalty. Over time, floating holidays may help to build a workplace culture that is more productive and supportive of employee well-being.
Float holidays are usually governed by a company’s leave policy, which will likely determine eligibility. In most cases, floating holidays will be available for full-time employees after they have satisfied a probationary period . This is to ensure that employees understand company policies before exercising extra flexibility in leaves.
Part-time employees may have eligibility as well, but usually on a prorated basis. For example, an employee who works on average 20 hours/month would usually get fewer floating holidays than someone who works full-time. Some companies do provide this benefit to contractors or temporary applicants, but that is up to the company.
Eligibility rules are usually outlined in the employee handbook or the human resources' policy documentation. Employees should go through the HR Policy for eligibility to get and understand the eligibility guidelines. This way, employees will know if they are eligible and what the process is to apply. Clear guidelines can eliminate confusion and ensure fairness across the organisation.
Many companies provide floating holidays for employees so that they have more flexibility and a balance between their work and personal life. These holidays have multiple benefits to both employees and the organisation.
1. Flexibility for Employees: Floating holidays allow employees to take time off on the days that matter most to them personally, whether it’s a birthday, religious holiday, or cultural observance. This flexibility helps employees feel respected, acknowledging that they have a life outside of work, and helps to support a healthier work-life balance .
2. Recognition of Diversity: Companies employ people from all cultural and religious backgrounds. Companies still tend to favour holidays that represent the majority culture, but allowing floating holidays for all staff allows everyone to celebrate their culture and tradition, while showing that the company values diversity.
3. Increases Employee Satisfaction: When employees can choose their leave days, they have some control over their work environment. This freedom increases an employee's job satisfaction and potentially increases motivation and performance.
4. Reduces Absenteeism: Flexible scheduling allows employees to plan their time off in advance, minimising unexpected absences. This helps managers maintain clarity on workloads and avoid last-minute disruptions caused by unplanned changes.
5. Boosts Employee Morale: Employees feel valued and appreciated when they get time off for personal reasons. Therefore, employee morale is high, and employees are happier and more motivated. This leads to better teamwork and a stronger employee bond.
6. Better Support for Work-Life Balance: Floating holidays also help employees support work-life balance and manage personal obligations and commitments more easily. Employees can spend time on family functions, religious involvement, or personal obligations and care without any stress.
Here are simple factors HR should consider when developing floating holiday policies:
1. Clear Policy
The HR department must articulate whether floating holidays will be paid/unpaid, the total number of floating holidays, and the application process, where applicable. A well-defined set of rules will provide structure and reduce confusion among employees.
2. Eligibility
Decisions should be made on who is entitled to use floating holidays, for example, whether it should be paid to all employees or only full-time employees. This helps remain consistent and promote fairness across workers in the organisation.
3. Number of days
HR will have to provide clarity on how many floating holidays an employee can take in a year. This will provide employees with a bit of flexibility while taking into account what is best for the business, so day-to-day work is not interrupted.
4. Carry-Over Rules
It will be important to show how unused floating holiday points will apply for the next year, whether they become inactive or simply held over. Taken together with any limits on taking/ accumulating floating holidays, this will be key to keeping the floating holiday policy fair and consistent.
5. Approval Process
Final steps to objectively consider creating a guideline process and avoid ambiguity when requesting to take floating holidays. A simple guideline should be developed, such as: 'You need to tell your manager, give a reasonable notice, so they can accommodate and plan the workload accordingly.
6. Cultural Sensitivity
HR should take into account employees' varying religious, cultural, or personal needs. Floating holidays allow both parties the flexibility to mutually respect the diversity of awareness, and employees appreciate the recognition of their value and inclusion.
7. Communication
Inform employees of the floating holiday policy with other HR policies via HR manuals, employee orientation, employee handbook, etc. With clarity of the rules, employees will be better able to plan for their leave and take advantage of the benefit; otherwise, the floating holiday may be used as a last-minute opportunity.
Yes, floating holidays are paid or unpaid may depending on an organisation's policies. In some organisations, floating holidays are considered paid time off like vacation days or sick leave, allowing employees to be paid their regular salary while taking a day off for the special occasion of their choosing.
Some organisations classify and offer floating holidays differently or do not consider floating holidays as paid time off at all, and offer floating holidays as unpaid leave time, for example, an organisation already has generous vacation policies in place. By offering a floating holiday, an organisation is providing employees with flexibility while at the same time, the organisation is not incurring additional costs.
To avoid confusion and provide clarity on the floating holiday, companies include in their HR manual whether floating holidays are paid or unpaid. Employees should check this information to understand the policy and plan for using floating holidays or leave days to maximise their benefits.
Floating holidays can vary from company to company and from industry to industry. Some companies simply offer one or two floating holidays a year, while other companies may offer up to four. The overall number can often depend on the size of the company, the location of the company, and the existing leave entitlements.
In some cases, floating holidays are added as part of a general flexible benefits program. Rather than giving employees a fixed number of optional holidays, it might consist of employees picking two days of their choice from the list of recognised events. This allows for both employer variation and employee input.
Because there are no strict rules or guidelines, employees should check the leave policy to know how many floating holidays there are in any one year. Similarly, an employer may tend to fine-tune numbers if tasks change over time and based on employee needs and feedback.
