Carry Forward

Carry forward refers to unused leave from an employee’s quota rolling over into the next year, rather than expiring. It usually happens at the end of the financial year, and the leave that gets carried forward becomes what’s known as earned leave.

These are also called privilege leave, and depending on the state’s shop and establishment act, they can typically be carried forward for up to three years (the exact limit varies). They can also be encashed against basic salary. Most companies require employees to apply for these leaves in advance, often around 15 days, though the specifics differ from one company to the next.