Federal Holidays

Meaning & Definition

A federal holiday is an official public holiday that the federal government declares, where federal government offices, banks, and many businesses will generally close for this holiday. In India, these holidays are usually called gazetted holidays. Organizations will use this holiday to determine how to plan their leave policies for employees, payroll to pay employees, and employee calendars of scheduled work.

Important features of Federal Holidays

• Help organizations develop business operations and work schedules.
• Regulation compliance for national and regional holidays.
• Support work-life balance and employee time off.
• Influence payroll processing, employee attendance, and leave management.
• Provide clarity of HR policies and holiday calendar for employees.
• Important for workforce planning across various sites.

Legal & Regulatory Considerations

• Public holidays affecting banks are governed in India by the Negotiable Instruments Act, 1881.
• There are also holiday lists issued by both the Central Government and the State Governments. The lists include both the Gazetted and Restricted Holidays.
• Employee holidays are set by each state’s Shops and Establishments Act.