Company holidays should only be populated by the administrator, and an employee should not have the option to schedule a holiday day off.
Our company uses Holiday as a timesheet "Activity" instead of time off "Type". We disable the holiday time off type, which removes it as a choice in drop down and does not require booking. Employees just add the activity for Holiday and fill in the hours. It's then up to approving supervisors and payroll to check for accuracy.
We also set "Time off type for holidays" to none, and turn off auto-populating of holidays on timesheet.
If you were coming from self-hosted setup, this setup will be like it used to be. Coming from Gen2, I'm not sure we never used it.
We want to remove 'Holiday' from this list so that employees are not able to book it as time off. Holiday was not an option before we upgraded the software.
Per instructions of the help desk, we went to time off settings and chose '< No Time Off Allowed on Holidays >', but that did not eliminate this option in the drop down. It was after we tried this that I was told to comment here.
I am sorry that the option to disable 'Holiday' at the user level was explored by the support team member. Rest assured that we will take this up and provide feedback/training to the concerned person.
As your users don't use timesheets this would be the ideal step.