Restricted Holiday Meaning, Rules & Examples

A restricted holiday is an optional leave that employees can avail. People usually take it for religious, cultural, or personal reasons. Unlike public holidays, it doesn’t follow a fixed schedule for everyone. Instead, employees have the freedom to decide when to use them.

For example, one might take a restricted holiday for a festival not officially observed by the company. Therefore, this type of leave also supports diversity and personal choice. Moreover, it allows organizations to respect individual beliefs without affecting overall operations.

Restricted Holiday Rules

They are not mandatory. Employees may choose whether or not to take these optional holidays.
Organizations have the flexibility to include or exclude them from their holiday calendar.
Employees can take only a limited number of restricted holidays each year.

Frequently Asked Questions

Q1.	What is the difference between a restricted holiday and a gazetted holiday?
Ans.	A restricted holiday, also called an optional or discretionary holiday. As a result, it gives the employees freedom to take time off for personal reasons. People often link these to religious or cultural practices. In comparison, a gazetted holiday is officially declared by the government. As such, it applies to everyone and is usually non-negotiable. Meanwhile, restricted holidays allow flexibility. They depend on individual choices and the company’s leave policy.
Q2.	Do businesses and government offices operate as usual on restricted holidays?
Ans.	Yes, both businesses and government offices remain open. Since only a few employees choose to take the day off, operations continue smoothly. As a result, there’s no need for companies to shut down or pause work. In most cases, daily activities go on without major disruption.
Q3.	Do restricted holidays vary by region or religion?
Ans.	Yes, these often differ based on region and local religious practices. Since customs vary, so do the holidays people choose to observe. Therefore, employees have the freedom to decide whether to take leave. This depends on their personal beliefs or religious traditions. In turn, it promotes inclusivity without disrupting workplace operations.
Q4.	Is a restricted holiday a leave?
Ans.	A restricted holiday, often called an “optional” or “discretionary” holiday, is offered by some organizations. It isn’t mandatory for everyone. Instead, employees may choose to take the day off based on personal or religious reasons. Unlike public holidays, it isn’t observed by all. As a result, its recognition varies from one company to another. Ultimately, it depends on both company policy and individual choice.
Q5.	What is an example of a restricted holiday?
Ans.	A restricted holiday is related to a cultural or religious event not celebrated by everyone. For example, festivals like Diwali, Eid, or local observances may fall into this category. In many cases, these holidays are not part of the company-wide calendar. Therefore, taking time off is a personal choice. Employers do not require all employees to take such leave. Instead, it depends on the company’s policy and the individual’s preference.
Q6.	Which leave can be combined with a restricted holiday?
Ans.	Sometimes, employees combine it with other types of leave, such as earned or casual leave. As a result, they can enjoy a longer break when needed. However, these rules often differ across organizations. In many cases, combining leaves depends on internal policies and manager approval. That said, this option gives employees the freedom to observe important events in a way that suits both their beliefs and company guidelines.
Q7.	What is a restricted holiday in a year?
Ans.	During the year, a restricted holiday refers to an optional day off. Organizations mainly offer it for cultural or religious observances. Unlike fixed holidays, it isn’t celebrated by everyone. Therefore, employees can choose whether to take the day off or not. At the same time, the approval of such leave depends on company policies. Moreover, personal beliefs and traditions often guide an employee’s decision to use it.
Q8.	How many restricted holidays can be taken?
Ans.	The number often depends on company policy. Usually, organizations set a fixed number of such days each year. Employees can therefore choose when to use them based on their beliefs. In many cases, this offers greater personal flexibility. The employer defines the exact count at the same time. Consequently, it may differ from one workplace to another.
Q9.	Can restricted holidays be carried forward to next year?
Ans.	Company rules determine whether employees can carry it forward or not. In some cases, employees can use them the following year. However, some organizations set a deadline for using these holidays. As a result, any unused days may expire if not taken on time. Thus, it’s important to check the specific leave policy in advance.