What is Holiday Substitution?
Holiday substitution refers to a system where you work on a designated holiday (public holiday or weekly holiday) and substitute a contractual work day (weekday) as a holiday on a 1:1 basis. (Labor Standards Act Article 55) Through holiday substitution, even when holiday work occurs, premium pay does not need to be paid, and workers can take a specific work day (weekday) off instead of working on the holiday.
Day | Mon | Tue | Wed | Thu | Fri | Sat | Sun | Mon |
Before Substitution | Work | Work | Work | Work | Work | Day Off | Weekly Holiday | Work |
After Substitution | Work | Work | Work | Work | Work | Day Off | Work | Weekly Holiday |
Requirements and Methods for Holiday Substitution
The [holidays] in holiday substitution refer to weekly holidays (usually Sunday), public holidays, and company-designated holidays.
Requirements and methods differ depending on the type of holiday, so please take note.
When substituting with a weekly holiday (Sunday)
The substituted weekly holiday must be granted before the next upcoming weekly holiday or within 6 days from the original holiday. (Reference: Ministry of Employment and Labor Administrative Interpretation 68207-149)
When substituting with a public holiday or company-designated holiday
This may vary based on labor-management agreements, but since there are no separate regulations, flex provides the option to allow holiday substitution within 6 months.
Holiday Substitution vs Compensatory Leave vs Alternative Day Off - Differences
| Holiday Substitution | Compensatory Leave | Alternative Day Off |
Concept | When working on a holiday with prior agreement, | Grant compensatory leave instead of overtime premium pay | Working on a holiday without prior agreement, then substituting another work day as holiday afterwards |
Legal Basis | Labor Standards Act Article 55(2) and | Labor Standards Act Article 57 | No explicit legal provision |
Method | Substitute 1 work day for 1 holiday | Grant paid leave equivalent to 1.5x the holiday work hours considering premium rate | Since no prior agreement was made for holiday work, premium pay for holiday work must be paid |
Premium Pay Required | X (Taking the substituted day off suffices) | X (Granting leave suffices) | O |
You must be wondering how to grant holiday substitution and compensatory leave to employees through flex!
For usage methods, click the guides below:
FAQ
Can I use the holiday substitution feature to substitute Saturday work with a weekday off?
Can I use the holiday substitution feature to substitute Saturday work with a weekday off?
No, Saturday as a day off cannot use holiday substitution. If you want to grant a day off for Saturday work, please use compensatory leave instead. (Saturday work is classified as overtime)
Is Saturday a holiday or a day off?
Is Saturday a holiday or a day off?
In most cases where the employment contract, collective agreement, or employment rules designate Sunday as the holiday with no separate provision for Saturday, Saturday is considered a day off. If you work on a day off (Saturday), it counts as overtime, not holiday work.
What is the difference between a holiday and a day off?
What is the difference between a holiday and a day off?
Holiday: A day with no obligation to provide labor. Under the Labor Standards Act, employers must guarantee employees at least one paid holiday per week, which is called a holiday (= weekly holiday). Working on a weekly holiday is called [holiday work], and typically for companies operating a 5-day workweek (Mon-Fri), Sunday is considered the holiday.
Sunday does not necessarily have to be the holiday - a different day can be designated as the holiday through employment rules or collective agreements.
Day off: A day where the obligation to provide labor is exempted through labor-management agreement. Unless otherwise specified in employment rules or collective agreements, it is treated as unpaid. Working on a day off is classified as overtime. Typically, Saturday is designated as a day off and Sunday as the weekly holiday.
Our company wants to treat Saturday work as holiday work.
Our company wants to treat Saturday work as holiday work.
If you want Saturday work to be treated as holiday work instead of overtime, and want to use the holiday substitution feature and apply holiday work premiums when granting compensatory leave, you need to make the flex system recognize Saturday as a holiday instead of a day off.
Register both Saturday and Sunday as weekly holidays in the work type!
