Paid Holidays

Understanding and implementing policies related to paid holidays is crucial for fostering a healthy work environment. Here are some valuable insights into the concept of paid holidays, their significance, associated benefits, and how they impact employees and businesses. 

What is a Paid Holiday?

Paid holidays refer to specific days on which employees are entitled to receive their regular pay, even if they do not work. 

These holidays typically include public and statutory holidays, such as Christmas, New Year's Day, Independence Day, and other locally or nationally significant observances. The goal is to allow employees to take a break from work, celebrate, and recharge without experiencing financial consequences.

However, please note that laws may vary on holiday pays depending on where you operate your business. In some countries, employers are not legally required to provide paid holidays. In others, it’s a legal obligation. 

What’s the Importance of Paid Holidays for Employees and Employers?

Paid holidays provide an opportunity for employees to spend quality time with their families, relax, and engage in personal activities, particularly during recognized special occasions. They therefore promote mental and physical health, reducing the risk of burnout, and enhancing overall productivity when employees return to work.

Offering paid holidays is a strategic investment for employers. It fosters a positive company culture, increases employee morale, and strengthens the employer-employee relationship. A well-designed paid holiday policy can attract and retain top talent as it showcases the company's commitment to work-life balance and employee welfare.

Benefits of Providing Paid Holidays

Paid holidays, which are essentially Paid Time Off, have several notable benefits including:

Increased Productivity: Employees who have the opportunity to rest and recharge during paid holidays often return to work with renewed energy and focus. 

Employee Retention: Paid Holidays show that employers understand employee needs. This helps build trust, which is a crucial element in building long-lasting professional relationships. 

Positive Company Culture and Brand: Paid holidays contribute to building a positive company culture by demonstrating that the organisation values work-life balance. This, in turn, fosters a supportive and inclusive workplace environment and builds a positive company brand.

Finally, in many jurisdictions, providing paid holidays is a legal requirement. Complying with these regulations not only avoids legal issues but also showcases the company's commitment to ethical and lawful business practices.

How Do Paid Holidays Affect Hourly and Salaried Employees?

How paid holidays affect hourly and salaried employees depend on the relevant laws in place. 

For example, in the UK, it is up to the employers to decide whether employees need to report for work during a bank or a public holiday. If the business is closed during that day, then you may ask your employees to take the time off as part of their annual leave entitlement. 

In Australia, full-time and part-time employees who do not work on a public holiday are still entitled to receive their minimum pay rates for the usual hours they work on that day. 

Singapore has a detailed scheme when it comes to paid holidays. Generally, if an employee is covered by the Employment Act, then they are entitled to 11 paid gazette holidays in a year. 

The Philippines also has strict laws obliging employers to pay 100% salary for the Regular Holiday even if the employee doesn't work. If the employee works on that day, then they are entitled to get paid twice their day’s salary. 

What Holidays are Typically Paid? 

Holidays that are typically paid include New Year’s Day, Christmas Day, Good Friday, and Easter Monday. Different countries also have different bank or public holidays that may be paid depending on the law or company policy. Below are some examples: 

• UK: Early May, Spring, Summer Bank Holidays, Boxing Day 
• Australia: Australia Day, Anzac Day, King's Birthday Holiday, Boxing Day
• Singapore: National Day, first and second day of Chinese New Year, Labour Day, Vesak Day, Hari Raya Puasa, Hari Raya Haji
• Philippines: Maundy Thursday, Independence Day, Rizal Day, Bonifacio Day

Note that some local holidays may also be typically paid.

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