Paid Holidays | Meaning and Definition

What are Paid Holidays? 

Paid holidays involve religious, national, or state holidays that employers may choose to offer as paid days off from work to the employees. The Fair Labor Standards Act solely regulates overtime pay and minimum wage; however, there is no federal rule that asks employers to give paid holidays to employees. 

Importance of paid holidays

Paid holidays just like vacations are deemed as important employee benefits. Several employees expect time off and paid holidays as part of their job benefits. Certain studies done on the subject revealed that employees mainly choose such benefits over higher pay. If a company offers more time for vacation, an employee will likely choose it over even if it is a lower-paying job. After vacation time, the two factors that rank high are health benefits and flexible work hours which are preferred by the employees. The owners of enterprises have also now come to recognize the importance of time off for their employees who list it as one of the top benefits. 

Benefits of giving paid holidays

A business that offers paid holidays sees higher physical wellness, enhanced productivity, improved engagement, etc. Whether a company allows paid holidays or not is incumbent upon the organizational culture and the industry. Employees say that they desire holidays to spend time with their families and friends. And thus, allowing them time off will make them feel that the company cares about them. This directly impacts employee loyalty, and retention while boosting their job satisfaction, dedication, and commitment to the organization.

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