HR Glossary  >   Restricted Holidays

Restricted Holidays

What are Restricted Holidays?

Restricted holidays are the holidays for which the employees have option to choose whether or not to take leave. In other words, the company’s list of restricted holidays could include many, but the employee is offered a chance to choose a maximum of 2 optional holidays from the list. It isn’t mandatory to keep the office closed during such holidays. The restricted holiday meaning can be further cleared with the below illustration.

For example, a company doesn’t provide holidays for Eid. One of its employees is of the Muslim caste and needs to take leave on Eid. Under such conditions, the employee can apply for a restricted holiday.


Frequently Asked Questions

What is the difference between a restricted holiday and gazetted holiday?

Restricted holidays are optional holidays that an employee can take any time in the year. On the contrary, gazetted holidays are compulsory holidays in institutions such as banks, schools, and businesses.

How many restricted holidays can an employee take in a year?

Many holidays are considered restricted holidays, but an employee is entitled to take only 2 holidays whenever he wishes.

Are restricted, optional, floating, and flexi holidays the same?

Yes, all four types of holidays are similar in nature. In each holiday type, the employee can voluntarily avail leave from a list created by the HR, but in a limited quantity as decided by the company’s policy.

Why should restricted holidays be entitled to employees?

As an ideology to embrace different religions and cultures, the employer may choose to offer restricted holidays. For this, a list of optional holidays is created, which could not be considered in the main culture and is different from the company’s holiday calendar.

What are the disadvantages of restricted holidays for an organization?

HR should clearly explain how and when the floating holidays should be used because it may negatively impact business productivity.


If the expectations are not discussed, the employee may end up taking optional leave during the peak period of the month. Another disadvantage is that the company may have to encash the optional leaves if the dates are not predefined.

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