What are Floating Days?
Floating days are a flexible time off benefit that offers employees the freedom to choose when to take paid leave. Unlike traditional holidays, which are fixed to specific dates, floating days allow employees to take time off for personal occasions or cultural celebrations that may not align with standard company holidays. This concept is gaining broad acceptance in small businesses as it supports work-life balance, promotes inclusivity, and helps companies adapt to the changing needs of their workforce.
In this brief guide, we'll define what are floating days, explain how they work, explore the different types, discuss legal considerations, and highlight the advantages of offering them. Plus, we’ll provide some insights on how to effectively implement floating vacation days in your organization.
What Does Floating Days Mean? Floating Days Definition
Let’s take a closer look at the floating days' meaning. In essence, a floating day, also known as a floating holiday, is a paid day off that employees can take at their discretion. Unlike public holidays, which are typically set by the government or company, floating days provide employees the flexibility to choose a day that suits their personal or social needs. As we’ve anticipated, these days can be used for various purposes, such as religious holidays or celebrations, birthdays, or to celebrate special occasions.
Keep in mind that floating days are generally offered in addition to the company’s standard paid holidays, and the specific policies—such as how many are available and whether they roll over—vary across organizations.
Floating Days vs. PTO and Paid Holidays
While both floating days and Paid Time Off (PTO) offer paid leave, they differ in their use and flexibility. Floating days are typically reserved for specific occasions chosen by the employee. PTO, on the other hand, is a broader benefit that covers vacations, sick days, and personal time off. Unlike PTO, which often allows unused time to roll over into the next year, floating days typically don’t carry over.
Floating days also stand apart from paid holidays. Paid holidays are fixed dates, such as Christmas or Independence Day, where all employees receive time off as determined by the company or national regulations. Instead, as you already know, floating days give employees the freedom to select their own day off.
How Floating Days Work
The process for using floating days typically involves employees submitting a request in advance, depending on company policy. While these days can often be used at the employee’s discretion, some companies may impose restrictions, such as blackout periods during busy times or limiting the days to a set list of approved holidays. On top of that, businesses may decide whether unused floating days carry over to the next year or operate under a “use it or lose it” policy.
Legal Considerations for Floating Days
As with every company policy, when it comes to floating holidays, it’s particularly important to understand the legal aspect of the matter. Let’s break down what you need to know in a straightforward way:
Do employers have to offer floating holidays? Not really. Companies aren’t required by law to provide floating holidays. These days off are more of a bonus that some organizations choose to offer as part of their employee benefits package—usually to support work-life balance and to accommodate different cultural events or personal preferences.
What about paying for unused floating holidays? Employers don’t have to pay for unused floating holidays. But, in some states, unused days might be treated like vacation time, which could mean compensation is required. So, it’s a good idea for companies to know their state laws and communicate clearly about whether unused days get paid out or simply disappear.
Can employers say no to floating holiday requests? Yes, employers can deny a request for a floating holiday. While these holidays are meant to give employees some flexibility, businesses need to keep things running smoothly. That means they might need to say no based on staffing and operational needs. To make things easier, it’s best for employees to put in their requests as early as possible.
Advantages of Offering Floating Days
First up, flexibility is the key benefit. Whether it’s for a cultural celebration, a religious observance, or just a personal day, having that choice can raise morale and job satisfaction. In fact, changing one’s schedule reduces job stress by 20% and brings up job satisfaction by 62%
Another huge advantage is supporting work-life balance. When employees can align their time off with their own schedules and commitments, it not only reduces stress but can also ramp up productivity.
Plus, offering floating holidays shows a company’s commitment to diversity and inclusion. It signals that you value the various backgrounds and beliefs of your team. If you allow people to take time off for occasions that matter to them, you set up an inclusive culture where everyone can feel welcomed.
On top of that, floating holidays help employees preserve their PTO. Instead of dipping into their vacation or sick days for special events, they can use a floating holiday, and save their leave for trips or unexpected family matters. And if your employees have to work during a standard holiday, floating holidays can serve as a great way to compensate them. This allows them to take a day off later when it suits them better, which is especially handy during busy times.
Implementing Floating Days in Your Organization
As evident from the previous section, rolling out floating holidays can be a fantastic move for your workplace. Here’s a laid-back guide to help you get it done right:
Craft a Clear Policy
Keep It Fair
Set Guidelines for Use
Check the Legal Side
Consider Implementing a Time Off Tracking Software
First off, you’ll want a solid policy in place. Make sure it’s easy to find and covers the basics. Decide if floating holidays are available right away at the start of the year or if employees earn them as they go. Also, clarify whether both full-time and part-time team members can take advantage of these days.
Don't forget to mention how far in advance employees need to schedule their floating holidays and how they should get approval from their supervisors. If there’s a waiting period for new hires, lay that out too. And it’s a good idea to specify any restrictions on when floating holidays can be taken.
Make sure everyone has equal access to floating holidays by setting clear eligibility criteria. This way, nobody feels left out. Also, outline the process for requesting and approving these days off, so everything is transparent and there’s no room for favoritism.
To avoid any confusion down the line, specify when floating holidays can be used. Are there blackout dates or busy seasons when they’re off-limits? It’s smart to establish how much notice employees need to give when asking for a floating holiday so that it doesn’t happen that multiple employees request time during the same period. You might also want to provide info on how these days can be combined with vacation or personal time.
Before you go live with your floating holiday policy, make sure it aligns with any local labor laws. Knowing the ins and outs of what’s required regarding public holidays and religious observances is important, so it might be worth chatting with a legal expert to avoid any hiccups.
Managing floating days is much easier with HR software like TalentHR. Instead of manual paperwork, you can digitize leave requests, automate tracking, and update calendars automatically. Employees submit requests with a click, and managers receive instant notifications.
TalentHR’s time off tracking feature helps customize leave policies, track absences, and set up automated accruals. Plus, with Google Calendar integration, you can easily manage your team’s availability, whether they’re in the office or working remotely. It’s a highly efficient way to easily track floating holidays—and it has a free entry-level planfor up to 10 users.
FAQs About Floating Days
How many floating days should businesses offer to their employees?
Typically, offering two floating days per year is a good starting point. This gives employees flexibility without overwhelming scheduling and planning in the employee's team.
Do floating days carry over to the next year?
Whether floating days carry over depends on your company’s policy. Some organizations allow them to roll over, while others require employees to use them within the year.
How do companies ensure fair use of floating days in a team environment?
To stay on a level playing field, companies can establish a clear policy on requesting and approving floating days. Setting guidelines can also help manage expectations and avoid scheduling conflicts.