Q. Our production manager heard that employers don’t have to pay holiday pay if an employee is absent the workday immediately before or after the paid holiday. Is this true?
A. Companies aren’t required to provide paid holidays as a benefit. However, many do so. The terms of the benefit are at the employer’s discretion. Like any benefit, those terms should be communicated to the employees.
Employers may condition receiving holiday pay on the employee reporting to work the day before and after the holiday. Many union contracts have such a provision.
If you provide a paid holiday benefit without this condition, it’s permissible to amend your policy to add this requirement for future holidays.