How restricted holidays work
The company publishes its holiday list at the start of the year in two parts: holidays for everyone, and a longer list of optional festivals from which each employee picks a few, such as two or three. The optional list covers festivals that matter to some employees but not all, such as Onam, Chhath Puja, Guru Nanak Jayanti, Good Friday, Bakrid or Parsi New Year. The employee marks their choice in advance, and the day is paid. Central government offices use the same idea, with a restricted holiday list alongside the compulsory holidays.
Restricted, gazetted, public and national holidays
In private companies these four words are often used loosely, and employees mix them up. What matters is the company's own holiday calendar: which days are off for everyone at a branch and which are optional picks for each employee.
- Restricted holiday: optional, picked by the employee from a list, office stays open
- Gazetted holiday: declared through a government gazette notification, closing that government's offices
- Public holiday: a day off for everyone in the company's holiday list
- National holiday: Republic Day, Independence Day and Gandhi Jayanti
Managing restricted holidays
Ask employees to make their picks early in the year, or a set number of days before the festival, so managers can plan cover. Make sure the list reflects the religions and regions of the workforce. In ZeniaHR's Holiday Calendars, optional holidays have a yearly pick limit, employees pick them from self-service, and HR can see a report of who picked which optional holiday.
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What is the difference between a restricted holiday and an optional holiday?
They are the same thing under different names. Government offices call it a restricted holiday, while many private companies call it an optional or floating holiday. In each case, the employee chooses a limited number of days off from a published list of festivals, and the office stays open for everyone else.
Is a restricted holiday paid?
Yes. A restricted holiday picked within your allowance is a paid day off, just like a public holiday for you. It does not reduce your casual or earned leave balance. If you want more festival days than the limit allows, you would normally need to use casual or earned leave for the extra days.
Is a restricted holiday the same as a gazetted holiday?
No. A gazetted holiday is a day the government notifies as a holiday in its official gazette, on which its offices close for everyone. A restricted holiday is optional: it sits on a separate list, offices stay open, and each employee picks only a limited number of such days in the year.