HR Calendar Year: Can Companies Shift from January-December to March-March?

I wanted to confirm one thing: the HR calendar year runs from January to December. Can the company change the sequence to, for example, run from March to March?

For all purposes, the calendar year runs from January to December, while the financial year spans from April to March. Depending on the situation, some people follow the calendar year, while others adhere to the financial year. Even in HR, most firms practice the calendar year for leaves, performance evaluations, etc., and the financial year for compensation, salary, and increments. Hope this helps.

Yes, your information was helpful, but I have one doubt. Our company started in the month of March, and most employees joined after March. However, our Manager is saying we will keep it from March to February (Leave records) to make it easier to maintain. Is this practice legal or illegal?

Thank you.

Factory Act or Shop and Establishment Act?

Are you under the Factory Act or the Shop and Establishment Act? You need to refer to the leave rules under the relevant act and regulations to determine if there is any provision to follow the calendar year only.

Leave Record Maintenance for Online Services Business

Our company falls under the Shops and Establishment Act in the state of Maharashtra. We operate as an online services business, established in March 2013. In our Pune office, we currently employ 7 individuals, and in our Delhi office, we have 5 employees. I would appreciate your guidance on how to maintain leave records. Can we utilize the financial calendar year for keeping track of leave records?

Attribution: https://www.citehr.com/476309-calend...#ixzz2l4TL0aLv

Regards.

Understanding Leave Records Under the Bombay Shop and Establishment Act

Sec 2(32) of the Bombay Shop and Establishment Act clearly states that the year is a calendar year commencing on the 1st day of January. So in Maharashtra, no, you do not have the option of keeping leave records for anything other than a calendar year.

Furthermore, it states that those who have worked for 240 days in a year, irrespective of the start of employment, are entitled to at least 21 days of leave. Those who have worked for more than 60 days in a year are entitled to 5 days of leave.

Checking Leave Rules for Delhi

For Delhi, you will have to check the rules provided under the Delhi Shop & Establishment Act.

Most companies follow the calendar year for HR activities, whether the company started in February or March. This is because it is easier to follow the calendar year from January to December. There are many activities in HR, such as leaves, performance appraisals, rewards systems, etc.

Adjusting Leave for a March Start

If your company started in March, you can adjust leave in the following way: If the company gives 24 CL in a year, it means you can take 2 leaves per month. Therefore, from March to December, the company will give 24 - 4 (2 leaves in March) = 20 leaves.

Performance Appraisal System

Similarly, in the performance appraisal system, you can assess the employee's performance over 10 months at the end of the year.