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Holiday Policy

A holiday policy explains how many paid holidays employees get, which national and festival holidays are fixed, how optional or restricted holidays work, and what happens when someone works on a holiday. HR publishes it with the annual holiday list for each location.

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[Company Logo][Company Name]

HOLIDAY POLICY

Policy No.:: [Reference Number]
Version:: [Version Number]
Effective Date:: [Date]
Policy Owner:: Human Resources

1. Purpose

This policy sets out the paid holidays observed by [Company Name] and the rules for restricted holidays and work on holidays, in line with the national and festival holiday rules of each state where we operate.

2. Scope

It applies to all employees at all locations. Each location follows the holiday list published for that office or plant.

3. Definitions

Fixed holiday: a paid holiday on which the office is closed.
Restricted holiday (RH): a paid holiday an employee may choose from the RH list.
Compensatory off (comp-off): a substitute paid day off for working on a holiday.

4. Policy

Each calendar year, employees receive [Number] fixed paid holidays, including Republic Day, Independence Day and Gandhi Jayanti, and festival holidays as per state rules.
In addition, employees may avail [Number] restricted holidays from the RH list.
Unused restricted holidays lapse at the end of the calendar year and are not encashed.
If a fixed holiday falls on a weekly off, no substitute holiday is given unless state rules require it.
Holidays falling within a period of approved leave [are / are not] counted as leave.
Employees required to work on a holiday receive [twice the ordinary wages / a comp-off] (comp-off to be availed within [Number] days), as per applicable law.

Date	Day	Holiday	Type	Locations
[DD/MM/YYYY]	[Day]	Republic Day	Fixed	All
[DD/MM/YYYY]	[Day]	Independence Day	Fixed	All
[DD/MM/YYYY]	[Day]	Gandhi Jayanti	Fixed	All
[DD/MM/YYYY]	[Day]	[Festival Name]	Fixed	[Work Location]
[DD/MM/YYYY]	[Day]	[Festival Name]	Restricted	All

5. Procedure

HR publishes the next year's holiday list by [Month] each year after management approval.
Restricted holidays are applied in [HRMS] at least [Number] days in advance and approved by the manager.
Work on a holiday must be approved in advance by the Department Head; HR records it for payment or comp-off.

6. Responsibilities

HR: prepare location-wise lists and display them on the notice board.
Managers: plan coverage for essential services on holidays.
Employees: apply for RH in time and record holiday work correctly.

7. Non-compliance

Claiming holiday pay or comp-off for work not performed, or managers requiring holiday work without approval and compensation, will be dealt with under the Disciplinary Policy.

8. Review & Approval

The policy and holiday list are reviewed every year before the calendar year begins.

Prepared by
[HR Name]
Human Resources

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]

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What this template includes

National holidays — Republic Day, Independence Day and Gandhi Jayanti
Festival holidays chosen per location — reflects state rules and local festivals
Restricted holidays — lets employees pick [Number] festivals that matter to them
Holiday list format — dates, day and applicable locations
Work-on-holiday rule — double wages or comp-off as applicable
Sandwich rule — how holidays between leave days are counted

When to use it

Publishing the annual holiday list for one or several states
Introducing restricted (optional) holidays for different festivals
Deciding pay or comp-off for employees who work on a holiday
Handling a holiday that falls on a weekly off or during leave

How to customise this template

1Check the national and festival holiday requirements in your state's rules
2Fill the holiday table for each office location
3Decide the number of restricted holidays and the application method
4Set the work-on-holiday compensation for eligible and non-eligible staff
5Decide whether you apply a sandwich rule and state it plainly

HR tips

Publish the list before the calendar year starts so people can plan travel
Keep a separate list for each state — festival holidays differ
Do not drop a mandatory holiday just because it falls mid-week in a busy month
Be transparent about the sandwich rule; it is a common source of complaints

The number of national and festival holidays and compensation for work on holidays are governed by state laws. Verify them for each location and consult a legal adviser where needed.

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Frequently asked questions

How many national holidays are there in India?+

Three national holidays — Republic Day (26 January), Independence Day (15 August) and Gandhi Jayanti (2 October) — are observed across India. Festival holidays are added according to state rules.

What is a restricted holiday?+

A restricted or optional holiday is one an employee can choose from a published list, so people of different faiths and regions can take the festivals important to them.

What if an employee works on a national holiday?+

Depending on the state law, the employee is usually entitled to extra wages, such as twice the normal rate, or a substitute holiday. Check your state's rule and record the choice in writing.

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[Company Logo][Company Name]
HR POLICY MANUAL
Company:
[Company Name]
Document No.:
[Reference Number]
Version:
[Version Number]
Effective Date:
[Date]
Policy Owner:
[HR Name], Human Resources
Approved By:
[Authorised Signatory]
Chapter 1: Introduction
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1.2 Scope: It applies to all employees on the company's rolls at all offices, plants and sites, including [Work Location]. Consultants, trainees and contract workers are covered where expressly stated.
1.3 Precedence: Where this manual conflicts with any law, certified standing order or individual appointment letter, the law and then the more favourable term for the employee will apply.
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- Employee: any person employed on the company's rolls on a permanent, probationary or fixed-term basis.
- Reporting Manager: the person to whom an employee reports as per the organisation chart.
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