What is the difference between vacation time and floating holidays?

Vacation time and floating holidays may seem similar, but there are some important distinctions. Vacation time is typically earned based on length of employment or reaching certain milestones, while floating holidays are given as a set number when an employee is hired. Floating holidays cannot be increased and will reset according to a predetermined schedule. For example, an organization might offer two weeks of paid vacation after six months, but if they offer two floating holidays per year, that‘s all employees will have, regardless of whether they used them the previous year.