Holiday Policy Template and Annual Holiday List Format

A holiday policy fixes the paid holidays employees get each year and how the holiday list is prepared, published and applied across branches. In India that means combining national holidays, festival holidays that differ by state and community, and any holidays the government declares during the year. The policy also settles what happens when someone works on a holiday or when a holiday falls on a weekly off.

When to use it: Use it when you publish the holiday list for a new year, open a branch in another state, or face questions about work on holidays. HR prepares the list with branch heads each November, the HR head approves it, and it is published before the year starts.

Holiday policy template

Copy the text below and replace everything in square brackets with your company details.

1. Purpose

This policy sets out the paid holidays at [Company Name], how the annual holiday list is prepared for each location, and how holidays interact with weekly offs, leave and work schedules.

2. Scope

It covers every employee of the company, in every state where it operates. Holidays that employees choose for themselves are covered by the Optional holiday policy.

3. Number and composition

Each location has [10] paid holidays in a calendar year.
Every list includes Republic Day (26 January), Independence Day (15 August) and Gandhi Jayanti (2 October).
The other holidays are festival and regional holidays chosen for each state, in line with the National and Festival Holidays or Shops and Establishments rules of [State].
Any holiday declared by the central or state government during the year, such as a polling day in that area, is given as notified.

4. Preparing and publishing

HR prepares a draft list for each state or branch by [15 November] after consulting branch heads.
The HR head approves the lists, and they are published to all employees by [15 December] for the following year.
The list is also displayed on the notice board at each workplace.
If a festival date shifts after publication because of the lunar calendar, HR announces the corrected date at least [7] days ahead.

5. Holidays on weekly offs

When a holiday falls on a Sunday or common weekly off, [no substitute holiday is given unless management declares one].
For shift and retail staff whose rostered weekly off falls on a holiday, [a substitute day off is given within the same month].

6. Work on holidays

Employees may be asked to work on a holiday where operations must continue, with the manager's request in advance.
An employee who works on a holiday receives [a substitute holiday within 30 days or wages at twice the daily rate for the day], and overtime pay for any hours that count as overtime.
Employees in grades not paid overtime may receive comp off under the Comp off policy instead.

7. Holidays during leave

A holiday inside a spell of leave is counted under the Sandwich leave policy. A holiday that falls during maternity leave is part of the maternity leave period.

8. Responsibilities

HR: prepare, publish and correct holiday lists and set them up in the attendance system.
Branch heads: suggest regional festivals and plan minimum staffing where work continues on holidays.
Employees: check the holiday list for their location before planning leave.

9. Review

HR reviews the number of holidays and the mix of festivals each year before preparing the next list, taking employee feedback into account.

What to include

National holidays

Include Republic Day, Independence Day and Gandhi Jayanti in every location's list. They are observed across India and form the base of any holiday list.

State-wise festival lists

Festivals differ across states: Pongal in Tamil Nadu, Onam in Kerala, Bihu in Assam, Gudi Padwa in Maharashtra. Prepare a separate list for each state and check that state's holiday rules while doing it.

Publication date

Publish the list before the year starts. Employees book festival travel home months ahead, and a late list forces them to take leave they would not otherwise need.

Work on holidays

State what employees receive for working on a holiday: a substitute day, extra pay or comp off. Hospitals, plants and stores that run on holidays need this settled before the first festival of the year.

Holidays on weekly offs

Decide whether a holiday falling on a Sunday or rostered weekly off earns a substitute day. Leaving it open produces the same argument every year.

Lunar calendar changes

Many festival dates depend on the lunar calendar and can move by a day. Keep a rule for announcing corrected dates so attendance and payroll use the right day.

Common mistakes to avoid

Using one holiday list for branches in different states.
Publishing the list in January, after employees have already planned festival travel.
Not updating the attendance system when a festival date shifts.
Asking staff to work on holidays without saying what they get in return.
Forgetting government-declared holidays such as polling days in a branch's area.

Run it in ZeniaHR

Holiday Calendars in ZeniaHR hold holidays by year in six categories: public, optional, national, religious, regional and company. Each holiday can apply to chosen branches and departments, so a Chennai branch and a Pune branch can follow different lists, and recurring holidays repeat every year. Employees see the holidays for their branch in My Self-Service, and holidays feed attendance, leave sandwich rules and payroll. Holiday work can earn comp-off in the Leave Ledger.

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Frequently asked questions

How many paid holidays are given in India?

It depends on the state and the employer. Every list should include the three national holidays, and festival holidays are chosen under the state's holiday rules. Check your state's National and Festival Holidays or Shops and Establishments rules for the minimum that applies, then add company holidays as you choose.

What are the national holidays in India?

The three national holidays are Republic Day on 26 January, Independence Day on 15 August and Gandhi Jayanti on 2 October. They are observed across the country and appear in every company holiday list, alongside festival and regional holidays that vary from state to state.

What happens if an employee works on a public holiday?

The employee should receive what the policy provides: a substitute holiday, extra pay for the day or comp off, plus overtime pay for any hours that count as overtime. The work should be requested in advance, and your state's holiday rules should be checked for any minimum compensation.

Do employees get a substitute holiday if a holiday falls on Sunday?

Only if your policy provides one. Companies often give no substitute when a festival falls on a weekly off, while some declare one for major festivals. Whatever you decide, write it into the holiday policy and apply it the same way every year.