What is federal holidays?
As you can imagine this term only applies in countries that have a federal political system like the United States, Canada, and Germany. In countries with this type of political system local and national authorities may have their own specific holidays, and when they apply at the national level only they are described as federal holidays.
This usually involves companies having to take a compulsory day off as mandated by the federal government. Examples include Memorial Day in the U.S. and Labor Day in Canada. The disruption caused by these events is almost always minimal as long as the pause in working activities is planned in advance.