Restricted Holiday

A restricted holiday, which is also known as a discretionary holiday or optional holiday, is a day off permitted by an employer to staff as a way of observing a certain cultural, religious, or personal occasion. In contrast with statutory holidays and public holidays which are obligated by law to be observed nationally, restricted holidays are up to the employer’s discretion and may differ from one firm to another. Employees may forgo a holiday off work because of their own beliefs or inclinations and with a permission of the management and in line with company policies.

Example of Restricted Holiday

Working in a multinational organization entails a workforce that comes from different cultural, religious backgrounds in which employees celebrate their own holidays and observances. To suit the different requirements of its workers, the company has a list of restricted holidays each year and the employees choose the celebratory days based on their individual preferences.

Similarly, a person who celebrates Diwali, the Hindu festival of lights, may decide to take a normal leave on Diwali day to stay with their family and participate in religious activities. Likewise, another employee who is Eid al-Fitr, this is a Muslim holiday marking the end of Ramadan, may choose a restricted holiday on Eid al-Fitr to join with their community and participate in traditional festivities.

Through paid leave, the company illustrates its dedication to diversity and equality, taking into consideration the various cultural and religious holidays, and supporting work-life balance. Employees enjoy the freedom to decide which holidays they will observe. Thus, it boosts job contentment and wellness.