How Does Holiday Pay Eligibility Work?

As per the Department of Labor and Employment, when an employee is absent on the day before a holiday, he/she is not eligible to receive holiday pay. Some companies in fact, have a policy where if an employee is absent from work the day after a holiday, he or she is no longer eligible to receive holiday pay. These policies can be setup on Sprout HR. Let's take a closer look at how this can be done:

*Note: The settings saved here will directly affect the payroll to be generated on Sprout Payroll.

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To illustrate how each option works, see below:

Example 1:

Let’s assume that Monday is a workday and Tuesday is a holiday. If on Monday, the employee was AWOL, then Tuesday will be unpaid.

But if the employee is present or with approved OB, COA or Leave with Pay on Monday, then Tuesday is paid.

 Example 2:

Let’s assume that Saturday and Sunday are rest days and Monday is a holiday. Then, Friday is considered the immediate workday preceding the rest day. If on Friday, the employee was AWOL, then Monday is not paid.

But if employee is present or with approved OB, COA or Leave with Pay on Friday, then Monday is paid. 

Example:

Let’s assume Monday and Wednesday are workdays and Tuesday is a holiday.

If on either Monday and/or Wednesday, employee was AWOL, then Tuesday is not paid.

But if employee is present or with approved OB, COA or Leave with Pay on Monday and/or Wednesday, then Tuesday is paid.

In this option, regardless of whether the employee was AWOL before or after the holiday or otherwise, the employee will be paid eitherway.

Note: In any of the options above, the employees who reported for work on a holiday (regardless of the workday before and after the holiday), will be paid with premium.

You should now be confident in assigning the most appropriate Holiday Pay Eligibility settings for your company.

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