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Restricted Holiday | Meaning and Definition

A restricted holiday, often referred to as RH leave, is a type of optional holiday that allows employees to take time off based on their personal, cultural, or religious preferences. Unlike mandatory public or gazetted holidays, which are uniformly observed across the organization, restricted holidays are flexible and chosen individually by employees from the list issued annually. 

This system promotes inclusivity and work-life balance, enabling employees from diverse backgrounds to celebrate occasions that are important to them. In HR terms, understanding the restricted holiday meaning is essential for implementing employee-friendly and diverse workplace policies. 

What is Restricted Holiday?

In simple terms, a restricted holiday is a non-mandatory holiday that employees may opt to take off. Organizations, especially in India, usually provide a list of such holidays—known as the restricted holidays list—from which employees can select a limited number (commonly 2–3 days) per year. 

The RH full form stands for Restricted Holiday. These holidays do not impact core business operations, as only a subset of employees will be off on any given RH day. 

Restricted Holiday Leave: Key Features

  • Optional Nature: RH leave is not compulsory; employees have the freedom to choose based on their needs. 
  • Cultural Inclusivity: Helps employees observe festivals or religious events not covered by national or gazetted holidays. 
  • Limited Days: Employees can typically avail 1–3 RH days in a calendar year. 
  • Pre-Declared List: Employers release a RH list at the start of each year for employees to choose from. 
  • HRMS Integration: Most companies track and manage restricted holiday leave via digital HR platforms. 

Few examples of RH in India

  • Mahavir Jayanti 
  • Good Friday 
  • Onam 
  • Guru Nanak Jayanti 
  • Eid-e-Milad 
  • Basant Panchami 
  • Christmas Eve 

(Note: Actual holidays available may vary by region, religion, and company policy.) 

Check out our blog on complete list of restricted and national holidays.

Restricted Holiday vs Gazetted Holiday

Understanding the difference between restricted holiday vs gazetted holiday is important for HR compliance and employee awareness. 

Feature 

Restricted Holiday (RH) 

Gazetted Holiday 

Nature 

Optional 

Mandatory 

Selection 

Employee chooses 

Government declared 

Applicability 

Varies by employee 

Applicable to all 

Frequency 

Limited (2–3 days/year) 

Fixed (as per official calendar) 

Flexibility 

High 

None 

Why RH Leave Matters in the Workplace

Implementing RH leave is a best practice for modern organizations that value diversity and flexibility. It allows employees to take time off without affecting overall productivity, offering a balance between personal beliefs and professional responsibilities. 

Summary

To sum up, restricted holidays means offering employees the freedom to observe personally significant events through a flexible leave policy. It’s a smart, people-first strategy that enhances inclusivity and supports employee well-being. 

FAQs:
What is the restricted holiday meaning in HR?

Restricted holiday refers to an optional leave that employees can take based on their religious or cultural preferences. It is chosen from a list provided by the organization and is not mandatory for all employees. 

Typically, employees can choose 1 to 3 restricted holidays per year, depending on the organization’s leave policy. 

A gazetted holiday is a mandatory, government-declared holiday observed by all employees. A restricted holiday, on the other hand, is optional and chosen individually by employees.

Yes, RH (Restricted Holiday) leave is generally considered paid leave, as long as it is approved and within the allotted number of restricted holidays per year. 

The full form of RH in HR is Restricted Holiday.

Usually, no. RH leave is not carried forward and must be utilized within the calendar year. 

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