An outraged member of staff has described the college as "a joke" and Scarborough MP Robert Goodwill has slammed the initiative as "political correctness gone mad".
A college spokesman said the decision had been made in accordance with Ofsted guidelines and was aimed at increasing inclusion and diversity.
She said: "Every school and college, wherever located, is responsible for educating its learners who will live and work in a country which is diverse in terms of cultures, religions or beliefs, ethnicities and social backgrounds.
"All employees at Yorkshire Coast College are encouraged to closely follow guidelines set out by Ofsted for the promotion of equality and diversity.
"We constantly review the ways in which we communicate, to ensure that we do not discriminate, and part of those reviews means that we have stopped referring to the Christmas Break and Easter Break and we now have End of Term Break."
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