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Sample Holiday Substitution Policy

What this policy is and why it matters

In today’s diverse and inclusive workplaces, not all employees observe the same holidays. While statutory holidays offer shared time off, they often reflect a narrow set of cultural or religious traditions. A holiday substitution policy gives employees the flexibility to trade designated holidays for days that hold personal, spiritual, cultural, or regional significance — without sacrificing pay or vacation time.

This policy supports the principles of decent work, anti-racism, and reconciliation by acknowledging Canada’s colonial holiday framework and actively creating space for employees to celebrate what matters to them. It also enables organizations to maintain operational continuity while offering staff greater autonomy over their time off.

Purpose

This policy outlines how employees may substitute select standard holidays for other meaningful days, balancing individual needs with the organization’s operational responsibilities.

Scope

Applies to all employees, including:

  • Full-time and part-time
  • Contract and permanent
  • Salaried and hourly staff

Guiding Principles

  • Respect and affirm employees’ cultural, religious, and personal identities
  • Recognize regional variation in statutory holidays across Canadian jurisdictions
  • Empower staff through flexible, trust-based scheduling
  • Ensure transparency and planning to support smooth operations

Eligible Substitutions

Employees may annually substitute:

  • Any standard statutory holiday observed by the organization, except for those occurring during a mandatory office closure (e.g., Christmas Day, Boxing Day, New Year’s Day)

  • Up to five (5) regularly scheduled paid days off (e.g., Fridays in a 4-day work week model)

Substituted days must be used within 12 months of the original holiday and should not carry over to the next calendar year.

Annual Holiday Substitution Process

  1. Deadline: Submit substitution plans by December 31 for the upcoming year.
  2. Form Completion: Fill out the Holiday Substitution Form, listing known or estimated substitution dates.
    • No justification is required to respect employee privacy.

  3. Approval:
    • Salaried staff submit to their supervisor.
    • Hourly/payroll staff submit to their supervisor and payroll/operations.

  4. Communication: Employees are responsible for informing relevant teammates and updating calendars, email signatures, and shared tools.

Changing Substituted Holidays

Changes are discouraged but may be approved by supervisors if:

  • Previously estimated dates need confirming
  • A new need arises and the change doesn’t disrupt team operations

Expectations and Accountability

  • Substituted holidays should be planned early and communicated clearly
  • Unused substitutions expire after 12 months
  • Employees who do not submit substitutions will follow the organization’s standard holiday calendar
  • Supervisors are expected to support flexibility while upholding team coordination

Encouraged Uses

Substituted holidays can be used for:

  • Religious or cultural observances
    Personal ceremonies or caregiving
  • Deep work or professional development (if working on a day most colleagues are off)

Review and Oversight

This policy should be reviewed annually to ensure it remains relevant, inclusive, and consistent with employment legislation and organizational values.

Resources for Implementation

Indigenous days of observance

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