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:

 1. Click the Maintenance tab on the Navigation toolbar on the dashboard.

2. Choose Company from the dropdown list.

 

 

3. Make sure the correct company is selected. Then click on the Holidays tab.

 

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

 

Click on the image to enlarge.

 

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.

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Monday	No	No	Yes	None	No
Tuesday	Yes	No	-	-	No

 

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

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Monday	No	No	Yes	Yes	Yes
Tuesday	Yes	No	-	-	Yes

 

 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.

 

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Friday	No	No	Yes	No	No
Saturday	No	Yes	-	-	-
Sunday	No	Yes	-	-	-
Monday	Yes	No	-	-	No

 

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

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Friday	No	No	Yes	Yes	Yes
Saturday	No	Yes	-	-	-
Sunday	No	Yes	-	-	-
Monday	Yes	No	-	-	Yes

 

 

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.

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Monday	No	No	Yes	None	No
Tuesday	Yes	No	-	-	No
Wednesday	No	No	No	-	Yes

 

 

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Monday	No	No	No	-	Yes
Tuesday	Yes	No	-	-	No
Wednesday	No	No	Yes	None	No

 

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

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Monday	No	No	Yes	Yes	Yes
Tuesday	Yes	No	-	-	Yes
Wednesday	No	No	No	-	Yes

 

 

	Holiday?	Rest Day?	Absent?	With Approved OB / COA / Leave w/ pay?	Paid?
Monday	No	No	No	-	Yes
Tuesday	Yes	No	-	-	Yes
Wednesday	No	No	Yes	Yes	Yes

 

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. If you have any further questions, you may send us a message at [e-mail]. We look forward to hearing from you.