Holidays, vacations, PTOs, and paid leave are some of the major perquisites all companies offer to employees. While most of the leaves and Paid offs are required by law, Floating holidays are provided voluntarily by companies to their employees for better work-life balance, cultural integration and boosting morale.
However, Floating holidays is a new concept for Indians that brings a lot of confusion around. This article aims to explain to you everything you need to know about Floating Holidays along with its meaning and examples.
A floating holiday is an additional paid days off that an employee can use at their discretion. Floating holidays are not tied to specific days or events, like Independence Day or Christmas. Instead, employees are given a set number of days at the beginning of the year which they can use throughout the year depending on their own requirement. For example, an employee might be given two floating holidays to use at their discretion during the year.
However, many companies do not give their employees a floating holiday at the beginning of the year. Instead, employees can exchange other official holidays, which they don’t want in exchange for floating holidays. For example, an employee can avoid taking a holiday on Diwali and exchange it with any other day as per his/her choice.
Additionally, floating holidays are also referred to those official holidays whose date cannot be determined but fall during a particular time of the year. For Example: Eid holiday cannot be determined on the exact date.
While the specifics of how floating holidays may vary from company to company, they typically come with some restrictions. For instance, many organizations require that employees give advance notice before taking a floating holiday so that staffing needs can be addressed. Some companies also restrict a certain time during the year when employees can take their floating holidays.
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Floating holidays offer several benefits to both employees and employers. Here are some of the major benefits of floating holidays for employees:
For example, an employee with young children may find it difficult to take time off during the school year. However, with a floating holiday, they can take the day off when it is most convenient for them.
Floating holidays are also beneficial for organizations in various ways. Here are some of the advantages of floating holidays for employers:
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There are many organizations that can benefit from instituting a floating holiday policy. Here are some examples of types of companies that would be well-suited to this type of arrangement.
When you are considering instituting a floating holiday policy for your business, there are a few things to keep in mind.
First, you will need to decide how many floating holidays each employee is entitled to per year. This can be anywhere from one to five days, depending on the needs of your workforce and other PTO’s offered by your company.
One of the major reasons for implementing a floating holiday policy is to make sure that employees can take these holidays whenever they need. However, if your business has a seasonal rush, you might need to restrict your employees from taking holidays during those times. For example, clothing brands can restrict employees from availing themselves of floating holidays before Diwali.
It is important that there is clear communication between employer and employee about the procedures for taking a floating holiday. You should make sure that the employee doesn’t need to apply for it very early.
Another thing to consider is how you will handle employees who do not use all of their allotted floating holidays. You will also need to decide whether employees can carry over unused floating holidays from one year to the next, or if they will expire at the end of each year.’
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In a Nutshell
As more and more businesses adopt floating holiday policies, it is important to consider how this type of arrangement can benefit your organization. When you are creating a floating holiday policy for your company, there are a few things to keep in mind, such as the number of entitled floating holidays and the timing for availing holidays. With careful planning, a floating holiday policy can be a great way to support your workforce and give them the freedom to achieve a desired work-life balance.
FAQ
Generally, yes. Most floating holidays are intended to be used at the employee’s discretion, although there may be some restrictions depending on your company’s policy. For example, some businesses may not allow employees to take floating holidays during peak times or busy seasons.
Carrying forward of floating holidays depends on the company’s policy. Some businesses allow employees to carry over unused floating holidays from one year to the next, while others treat them as expired at the end of each year.
Floating holidays are typically allowed holidays that are set aside at the beginning of every year for employees to avail as per their need. Whereas PTO is earned by employees by longer they work and can be used for vacation, personal time, or sick days. Unavailed Floating holidays are generally not carry forwarded while unavailed PTOs are generally carry forwarded or encashed.
Although, both floating Employees can use the floating leave for any reason from cultural celebrations to personal days off. The key is that the employee does not need to provide a reason for taking the floating holiday.
The employer decides how many floating holidays each employee is entitled to per year and when these holidays can be taken. It is important that there is clear communication between the employer and employees about the procedures for taking a floating holiday.
A company’s floating holiday policy should include the number of holidays each employee is entitled to, how the holidays can be used, and any restrictions on taking holidays. It is also important to communicate the policy clearly to employees so that there is no confusion about how the system works.
There is no definitive answer to this question as it depends on the company’s policy. Some businesses may designate specific holidays as floating holidays, while others may allow employees to choose any day of the year as a floating holiday.
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