Understanding Calendar Year vs. Financial Year Leave: Which Is Better for Our Organization?

Difference Between Calendar Year Leave and Financial Year Leave

Kindly guide me on the difference between "Leave during Calendar Year i.e. Jan-Dec" and "Leave during Financial Year i.e. Apr-Mar." In our organization, we are currently practicing "Leave during Financial Year i.e. Apr-Mar." Should we proceed and change it to the Calendar Year? If yes, then how will it benefit the organization? I need your valuable inputs on the same, as I have to take action accordingly.

Regards,

Dear Kaushambi, there will be no benefit or loss to the company if the leave records are changed to the calendar year (Jan-Dec) instead of the financial year (Apr-Mar).

Reasons to Consider Changing to Calendar Year

1. You can clearly inform the employer that it will be difficult to update the leave details in Form 15 (Leave with Wages Register) accordingly every year.
2. For payroll purposes, the leave management system will be precise and easy to explain to the employees.
3. The calculation of F&F, leave encashment, etc., will be precise.

I hope your queries have been answered. If there are any other questions, please let me know.

Regards.

Dear Sir, This is Satya. Please give me the information about the E.L, S.L, C.L, and Acts.

E.L Details

1. E.L means April to March I.D.M - 1947 under the Industrial Dispute Act.
2. You are including for the year E.L. Only 20 (365/20 = 20).

S.L Details

3. S.L under the AP Establishment Act is for 30 January to December.

Is this information correct? Are any rectifications needed?

Thank you.

For example, refer to sec. 79 of the Factories Act:

79. Annual Leave with Wages

(1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year.

Regards,
Pon