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How will company holidays affect leave balances and pay?
How will company holidays affect leave balances and pay?

This article outlines how Cocoon categorizes employee leave during company holiday closures based on the length of the closure and the employee’s leave duration.

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Written by Cocoon Support
Updated over a month ago

Leave Balances:

Cocoon categorizes an employee’s time away by evaluating four scenarios, which consider both the length of the company holiday closure and the employee’s leave duration. Using this information, Cocoon determines whether the employee’s leave balances will be applied.

These scenarios are outlined in the following table, where rows represent the employee’s leave duration and columns represent the length of the company closure. To interpret the table, start with the row that corresponds to the employee’s leave length, then reference the appropriate column for the company closure duration.

For example: If an employee is taking less than a work week of leave and the company closure is a week or more, then the Company Holiday days are not counted towards the employee’s leave time.

The following assumes the employee is not otherwise scheduled and expected to work on company-closed days:

Company closure is less than a week

Company closure is a week or more

Employee is taking less than a work week of leave

Company Holiday days are not counted as leave time

Company Holiday days are not counted as leave time

Employee is taking a work week or more of leave

All leave days including Company Holiday days are counted as leave time

Company Holiday days are not counted as leave time

When Holiday time is not counted as leave time, it is shown in the light green color on the timeline:

Pay Clarity:

To understand how company holiday time impacts an employee’s leave, refer to the leave timeline. This timeline indicates the expected payment source during different parts of the leave period. If you have designated a "Paid Holiday" in your Cocoon settings, holidays will appear in light green on the pay timeline.

Additionally, Holiday pay will be included within the pay files provided during any applicable employee’s leave.

For more information on entering company holidays within Cocoon please see this article:
How to specify company holidays

Scenario Examples:

Example A:

If your company leave policy is to be inclusive of holidays, meaning that employees don’t get additional leave days if their leave crosses a company observed holiday:

  • While specifying your company holiday within Cocoon you will select the “Leave of Absence Policy” option for the subset of employees you want to be reflected this way.

  • This means any employee taking a leave over this holiday will be paid from their leave of absence policy rather than from any holiday pay and their pay and time entitlement timelines will reflect as such.

Example B:

If your company leave policy is to exclude holidays, meaning that employees should get additional leave days if their leave crosses a company observed holiday:

  • While specifying your company holiday within Cocoon you will select the “Paid Holiday" option for the subset of employees you want to be reflected this way.

  • This means any employee taking a leave over this holiday will be paid from Holiday pay rather than from any leave of absence policy and their pay and time entitlement timelines will reflect as such.

Example C:

If your company does not specify any holidays within Cocoon.

  • Employees will be paid according to your leave of absence policies within Cocoon and no holidays will be accounted for throughout any leaves.

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