Highlights
- Indian labour legislation grants various rights to employees. One of them is entitlement to Public Holidays.
- The key is to create frameworks that are both practical and respectful of cultural diversity.
- MNCs may implement ‘floating holiday policies’ that give employees the autonomy to choose their significant cultural celebrations.
- Global counterparts may also be a part of the solution. With multiple global locations, it is possible for employees in other locations to step in for Indian colleagues when they are celebrating festivals.
- If employees are unable to take time off on public holidays to celebrate festivals due to ineffective planning on the part of the manager or the employee, then this needs to be addressed.
- When organisations approach cultural celebrations as opportunities rather than challenges, they create stronger, more cohesive teams.
- Countries where there are a large number of Indians too declare Diwali as a holiday – Singapore being one.
- To plan it in advance is wiser when MNCs run a business in India.
Restricted holidays usually refer to the optional holidays that employees can take at their discretion to celebrate days that align with their personal beliefs or traditions without impacting the official holiday schedule of the organisation. However, in certain organisations, restricted holidays just mean that employees are totally restricted from taking those holidays!
Most people working in abroad-headquartered MNCs always raise a concern that they don’t get those common holidays that most employees working at Indian companies avail of. The same goes for most celebrated festive occasions in the country. A person working at a prominent US-based financial services firm felt bad that she was not even getting a holiday for Diwali! She was also not allowed to apply for personal leave because of the reason that other four colleagues from her team (comprising 20 people) requested leave for Diwali last month itself.
Though this might seem like a small concern, missing out on most of the cherishing moments with family and friends does have a significant impact on a person’s work-life integration in the long run. In this context, ETHRWorld interacted with the HR leaders from MNCs headquartered in different countries to know their take on this scenario and explore if a practical HR solution could be possible.
International companies need cultural sensitivity
Manika Awasthi, Chief People Officer, Compass Group India, says, “In today’s globalised workforce, it’s essential for MNCs to recognise the cultural diversity of their employees. Festivals like Diwali are not just personal celebrations, they hold significant emotional and social value for people in India or for Indians in different countries. When these holidays aren’t recognised, it can lead to feelings of isolation and low motivation, and the employee’s engagement factor (especially in happiness with an organisation) can take a significant hit.”
“While international companies may have uniform holiday policies, a more inclusive approach would be to consider flexibility and cultural sensitivity when it comes to such celebrations. It is very heartening to know that countries where there are a large number of Indians too declare Diwali as a holiday – Singapore being one. It is prudent for organisations to realise the sentiments of their people and where they would like to spend their time on important occasions, as in any case most people will likely take a holiday which will have an impact on productivity and business on those days. To plan it in advance is more wise even as you run a business in India,” Awasthi adds.According to Awasthi, HR policies should evolve to better accommodate cultural diversity. “A flexible holiday policy could be a practical solution, where employees can either take an additional day off for cultural or religious celebrations, or be allowed to choose from a list of government holidays which are ‘floating’ that are personally meaningful and suit their needs. A one-size-fits-all policy cannot be applied in such cases. Ensuring that we have a kitty of casual leaves being offered to employees in case we can’t accommodate all kinds of leaves is also mandatory so that people have the means via a policy to meet their needs. This flexibility helps promote inclusivity and fosters a positive work environment,” she says.
Entitlement to Public Holidays is a human right
Nousheen Khan, Director – HR, Hexagon R&D India, points out that the Indian labour legislation grants various rights to employees. “One of them is entitlement to Public Holidays. If employees work on public holidays, they should get compensatory leave or additional pay. The context of each industry and organisation is different. However, working on public holidays for employees in essential services industries like health service, public transport, etc is a necessity. In other industries, HR leaders need to work closely with the business team to understand the situation,” she says.
According to Khan, different solutions can be offered depending on the context. “Global counterparts should also be a part of the solution. With multiple global locations, it is possible for employees in other locations to step in for India when we are celebrating festivals. Leaders need to make employee wellbeing a top priority. If employees are unable to take time off on public holidays to celebrate festivals due to ineffective planning on the part of the manager or the employee, then this needs to be corrected,” she says.
Holiday policy should be a subset of the main philosophy of inclusivity
Rachna Taranath, Interim Head – Human Resources, MassMutual India, says it’s important to make employees feel included irrespective of their customs, culture and race. “When organisations address this need of an employee by letting them celebrate their roots, their culture and festivals, it makes them feel valued and included. MassMutual India lists out all the important holidays. Some of these holidays also overlap with holidays in other regions and it’s up to the employees to choose from the bucket of holidays that they are eligible to avail themselves of. The key is to ensure that our benefits meet employees’ diverse needs at each stage of life,” she adds.
Taranath opines that having a policy in place makes the practice seamless for HR. “The need for having a policy should essentially root from a bigger picture of inclusion. Drafting a holiday policy should be a subset of the main philosophy of inclusivity. You could still have a certain number of holidays that one can avail but those days can be left to the employee to decide. Letting employees choose their holidays is the best way to keep them happy, empowered and included,” she says.
Need to balance operational continuity with cultural inclusivity
Anitha Sarathy, Head – People & Culture, Encora, says, “As a global company with 9,000 professionals across 17 countries, we deeply understand the importance of cultural celebrations in our employees’ lives. The scenario you describe touches on a fundamental aspect of today’s global workforce – the need to balance operational continuity with cultural inclusivity. Our experience shows that cultural celebrations are more than just holidays – they’re essential moments that connect people with their heritage, families and communities.”
According to Sarathy, when organisations acknowledge and support these celebrations, they strengthen their cultural fabric and create an environment where people can bring their authentic selves to work. “Addressing cultural celebrations isn’t just about policy – it’s about recognising that our strength lies in our diversity. The ability to celebrate one’s culture contributes directly to employee wellbeing, engagement and a sense of belonging, and leads to better outcomes at work. We have created a flexible, inclusive approach to holidays that reflects our global identity. We believe practical solutions should be both scalable and meaningful,” she says.
Sarathy further shares some concrete approaches that they have found effective:
- Implementing floating holiday policies that give employees the autonomy to choose their significant cultural celebrations.
- Creating flexible scheduling frameworks that allow teams to plan around important cultural dates.
- Fostering open dialogue about cultural celebrations to build understanding across global teams.
- Establishing clear protocols for ‘holiday requests’ that balance individual needs with team responsibilities.
- Supporting virtual or hybrid celebration formats that connect the global workforce during significant cultural moments.
“The key is to create frameworks that are both practical and respectful of cultural diversity. When organisations approach cultural celebrations as opportunities rather than challenges, they create stronger, more cohesive teams. It’s not about just creating policies – it’s about creating environments where every Encorian feels valued and understood,” Sarathy says.
It’s extremely critical for any MNC to provide localised holidays
Debalina Chatterjee, HR Head – India and APAC, Mitgo, agrees that missing out on festival celebrations with family and friends is concerning for a person’s work-life balance and might affect their mental wellbeing. She stresses that it is extremely critical for any MNC to provide localised holidays to allow the employees to feel cared for by the company. “Mitgo is headquartered in Germany and has offices in more than 10 countries, but all of us always live in great harmony. We take pride in providing a well-balanced work-life to our employees without impacting the business goals. The global HR team of Mitgo works in a cohesive way to ensure that there is no discrimination in regional celebrations. We provide holidays at all the major local festivals in all countries. This ensures that employees are able to celebrate their relevant festivities while also working for an MNC,” she says.
“Some industries require a 24-hour shift, so in those cases, it is important to create an effective rostering system that identifies the employees’ availability or non-availability on the festival days. India, being a diverse country, there are different regional festivals celebrated by different groups of employees. To appreciate their contribution on the festival days, the employees should be fairly incentivised. This compensation will go a long way in motivating the employees to work during festivals and not feel neglected,” Chatterjee adds.
