Leave cycle - anything wrong in continuing with April - March instead of following the calendar year?

I have just joined a company where there was no HR department. The leave cycle they follow is the accounting year, i.e., April - March, and they offer 15 paid leaves. So, now I have to wait until March before I introduce some changes.

Just wanted to clarify if there is anything wrong with continuing with the same cycle, i.e., April - March, instead of following the calendar year like most companies. Should I have some leaves for April 2011 to December 2011 this year and then change it to Jan - Dec in 2012, or should I carry on with the same cycle and make it April - March - 2012?

Hi,

I don't think there is any problem in continuing with the same cycle, i.e., April to March. If you want to initiate changes, do it from April this year; otherwise, it leads to confusion. Or if you want to change the cycle, then go ahead and introduce changes.

Regards,
Archna

It is better to synchronize the leave cycle with the financial year (FY) of the company as it facilitates the calculation of the company's liability towards leave encashment, considering the accounting standards followed by the company. When the leave cycle is based on a calendar year, leave due for three months (January to March) every year must be calculated for each employee annually for the above purpose, leading to an increase in workload during financial closing.

TR Chhabria

Dear friends,

So far, the issue of leave falls under The Factories Act. The counting of leave is basically taken on working days from January to December as per the provisions of the said act, and it is referred to as the "calendar year."

KIRAN KALE

So, you mean there is no harm in continuing with the financial year for leaves?
Can I have 21 privilege leaves as per Bombay Shops & Establishment Act from April this year?

We follow an Apr to Mar cycle. Please guide me in case an employee joins in Dec, how many PL will he be applicable.