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In Moment you can view existent company holidays and define new.
Company holidays are basically national holidays. In some countries like Denmark and Sweden, it is relevant to define half days as company holidays. By pressing "Add Company Holiday" you can add a full company holiday. This will count as an entire day off. Remember that if a co-worker registers hours in a company holiday, all the hours will count as banked hours.
When you click "add company holiday" simply put in the name of the holiday and the date. Then save.
First, you need to enable this feature in your settings. Navigate to Setup > settings > general
Once you enable and save this, go back to your Company Holiday settings. A new option will be available.
In the example above, it will make it so that co-workers will only be able to log in 5 hours as a full working day. In their timesheet it will look like this: