A floating holiday is a day that an employee can take off according to their own choosing without it being included under the company’s paid time off policy. Employees usually take floating holidays for unforeseen as well as one-time events like weddings, funerals, etc.
It’s a good idea for companies to utilize a floating holiday policy as the increased level of flexibility they offer is popular with employees. It also ensures that paid time off holidays, as well as sick leaves, are treated separately. While this also provides employees with greater flexibility it also minimizes time spent on longer absences.