Restricted Holidays (RH) refer to optional public holidays that employees can choose to take leave on, based on their personal, cultural, or religious preferences. Unlike mandatory public holidays, restricted holidays do not apply to the entire workforce, allowing employees to customize their leave schedules while ensuring business continuity. Organizations typically provide a predefined list of restricted holidays, from which employees can select a limited number of days off per year.

Industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) implement restricted holiday policies to balance workforce availability and employee well-being. HR departments leverage HRMS and leave management systems to track, approve, and manage restricted holiday requests efficiently. A well-structured holiday policy helps businesses maintain productivity, respect employee diversity, and promote a flexible work culture.