Restricted holidays (RH) are a great way to give employees more flexibility. These are leave days they can take for personal, cultural, or religious reasons that might not be covered by national holidays. It’s a simple way for employers to show respect for the diversity of their team.
Offering restricted holidays helps create a more inclusive environment. When employees feel their personal beliefs are respected, it builds trust and boosts morale. It also strengthens your company’s commitment to diversity.
By giving employees the option to celebrate important occasions without affecting their work-life balance, these holidays make a big difference in fostering a positive, flexible workplace. It’s a small gesture, but it goes a long way in creating a supportive work culture.
Let’s start by discussing what restricted holidays (RH) are and how they’re different from other types of holidays.
Restricted holidays are optional days off that employers offer to employees for cultural, religious, or personal reasons. Unlike public holidays, which are fixed for everyone, RHs are flexible. Employees can choose which days they want to take off based on their own beliefs, culture, or personal needs.
These holidays give employees the space to observe important occasions that are meaningful to them, making them feel seen. It’s a simple way to show respect for diversity while also giving your team the flexibility they need to balance work and personal life.
With the basic definition in place, let's look at the key characteristics of restricted holidays to understand how they are implemented in organizations.
Restricted holidays offer employees flexibility and control over their leave. Here’s what makes them stand out:
Employee-Selected
Employers usually provide a list of restricted holidays, but it’s up to the employee to decide which ones they want to observe. They’re free to take time off on those days, based on their personal, cultural, or religious preferences. It’s all about giving your team the flexibility to celebrate or observe important days that matter to them without disrupting the overall work schedule.
Two RHs per Year
Employees are usually allowed two RHs each year, but the exact number can depend on the company’s leave policy.
Voluntary Leave
Unlike official holidays, RHs are optional. Employees can decide whether to take these days off, and they don't need to close the office for it. Business can go on as usual unless the employer decides otherwise.
Now that we've got the basics down, let's get into why restricted holidays are so valuable in the workplace.
Restricted holidays (RHs) are more than just extra days off—they’re a powerful way to create a positive, inclusive workplace. Here's why they matter:
Promote Cultural and Religious Diversity
Restricted holidays give employees the chance to celebrate important cultural, religious, or personal days that might not be recognized as national holidays. This helps people feel respected and valued, no matter their background.
Example: Example: In a global company, offering RHs allows employees to celebrate holidays like Thanksgiving for U.S. staff, Hanukkah for Jewish team members, or Diwali for Hindus, Eid for Muslims, Christmas for Christians, Guru Nanak Jayanti for Sikhs, and Pongal for Tamils, ensuring representation across diverse communities.
Increase Employee Morale and Satisfaction
When employees see that their beliefs and practices are acknowledged, it improves their job satisfaction and trust in the company. This leads to better retention and productivity.
Boost Flexibility and Work-Life Balance
RHs are a great way to offer more flexibility, which is something many employees really appreciate, especially after the pandemic. A little more control over their time off can make a big difference in overall employee happiness and loyalty.
Restricted holidays (RH) are optional leave days that employees can choose to observe based on their personal, cultural, or religious preferences. Unlike national holidays, which are mandatory, RHs offer flexibility, allowing employees to take time off for occasions that hold personal significance.
In India, the list of RHs can vary by state and organisation. Typically the list includes:
January 14: Pongal, Makar Sankranti, Hazarat Ali's Birthday
February 2: Vasant Panchami
February 23: Swami Dayananda Saraswati Jayanti
February 24: Maha Shivaratri
March 14: Holi
April 11: Mahavir Jayanti
August 15: Independence Day
September 14: Hindi Diwas
September 22: Navratri
October 2: Gandhi Jayanti
October 21: Diwali
November 5: Guru Nanak Jayanti
These dates are based on various sources, including the National Portal of India and other holiday listings.
It's important to note that the specific RHs can differ depending on the organisation's policies and the region's cultural practices. Employers typically provide a list of RHs at the beginning of the year, allowing employees to plan their leave accordingly.
By offering RHs, employers demonstrate respect for the diverse cultural and religious backgrounds of their workforce, fostering an inclusive and supportive work environment.
Now that we understand why RHs are important, let’s take a look at the eligibility and entitlement rules.
Restricted holidays are available to both government and private sector employees, but how they’re handled can vary from company to company. Here’s a quick breakdown:
Universal Access
RHs are not mandatory for private companies, but many organisations offer them to promote inclusivity. Employees must know how many RHs they’re entitled to and how to request them.
Company-Specific Rules
While two RHs per year is the norm, some companies may offer more, especially if they have a diverse workforce. Multinational companies or those with a mix of cultures might provide a broader selection to cater to different needs.
Approval Process
Employees usually need to request RHs in advance to ensure their absence doesn’t disrupt the workflow. Having clear guidelines on how to request RHs can prevent confusion and make the process smooth.
Now, let's take a closer look at the policies companies should consider when offering restricted holidays.
To make sure everyone is on the same page, it’s crucial for employers to clearly define and communicate their restricted holiday policies. Here's how to do it:
Announce RHs at the Start of the Year
Let employees know about the restricted holidays at the beginning of the year. This gives them time to plan and prevents confusion later.
Variations Based on Company Policy
The number of RHs and the specific dates will differ across organisations. Some companies might offer one, while others may offer more. Be transparent about this so employees know what to expect.
Rules for Carrying Forward RHs
Some companies allow unused RHs to carry over into the next year, while others don’t. Make sure employees are clear about your company's policy on this to avoid any surprises.
Now that we've covered how to set clear guidelines let’s take a look at how restricted holidays differ from other types of holidays, like gazetted holidays, public holidays, and casual leave.
To get a better idea of what makes restricted holidays unique, let's compare them with other types of leave like gazetted holidays, casual leave, and paid leave:
Gazetted Holidays vs Restricted Holidays
Gazetted holidays are official, government-mandated days off, and businesses must observe them. On the other hand, restricted holidays are optional. Employees can choose to take them, and businesses don’t have to close down for them.
Restricted Holidays vs Casual/Annual Leave
RHs are different from casual or annual leave because they don’t count against an employee’s leave balance. They are extra days off given to employees for more flexibility, without affecting their paid leave entitlement.
Flexibility
RHs offer more flexibility than other types of leave. Employees get to decide when to take them off, which is especially beneficial for those from diverse cultural backgrounds with different holidays to observe.
Now that we've compared them, let's wrap up by looking at how restricted holidays benefit both the organization and its employees.
As an employer, managing restricted holidays effectively is key to balancing business needs with employee satisfaction. Here are a few simple practices to help you get it right:
Clear Communication
Make sure employees know how RHs work and how to request them. This should be included in your employee handbook and discussed during onboarding so everyone is on the same page.
Set Limits
While RHs are meant to be flexible, too many can cause disruptions. Setting a reasonable limit (e.g., two RHs per year) keeps things balanced.
Tracking and Monitoring
It’s important to keep track of how many RHs each employee uses. This helps HR manage staffing needs and ensures no one exceeds their entitlement.
Include in Leave Policies
Make RHs a formal part of your company’s leave policies. This prevents confusion and gives employees clear guidelines on how to use them.
By following these simple steps, you can manage restricted holidays smoothly while keeping your employees happy and your business running efficiently.
Restricted holidays are a great way for employees to celebrate cultural, religious, or national holidays that are important to them. Offering this flexibility helps employers create an atmosphere of inclusivity, improve morale, and build a workplace that’s fair to everyone.
When done right, restricted holidays don’t just benefit employees, they can also improve your organisation’s overall performance. By supporting your team’s personal beliefs, you build trust, increase job satisfaction, and attract top talent. It’s a small gesture that can make a big impact.
Managing restricted holidays alongside other leave policies doesn’t have to be tricky. With Craze, HR software makes leave management easy. It helps track restricted holidays, ensures compliance, and saves time—so you can focus on what matters: keeping your employees happy and your business running smoothly. Explore Craze today!
