How Do Indian Organizations Calculate Employee Leave: Financial Year or Calendar Year?

We are an Indian-based Educational Organization. Being new to this field, I wanted to know if 21 leaves, including sick leave and casual leave for employees, are allowed and calculated on a financial year basis (April to March) or from January to December? Hoping for a positive response.

Thank you.

Regards,
Forum Vira
HR Executive

Yes, you can adjust the leave based on the policy, which could be divided as 15 days of sick leave and 6 days of casual leave. Most companies follow the calendar year (Jan - Dec) instead of the financial year.

I assume you are based in Mumbai and are subject to the Bombay Shop and Establishment Act. The act specifies 21 days of leave to be given each year (for those working for more than 240 days in the previous year). There is nothing in the act regarding the breakup of the leave into different types of leave (except for maternity leave, which is specifically provided). So, you can decide the breakup as you need. However, you cannot, under the guise of different types of leave, deny the employee the full 21 days of leave.

The law requires you to follow the calendar year for leave records; you do not have a choice in that matter.

I think Mr. S. Banerjee is right; provisions under the Shops & Commercial Establishment Act would apply as you cannot be considered to be an educational institution.

Regards,
HR