Carry Forward | Meaning and Definition

What is carry forward?

Carry Forward means when unutilized leaves in an employee’s leave quota are carried over to the next year, and the employee can use them the next year.

Typically, carry forward is done at the conclusion of the fiscal year. Earned leaves are those that an employee accumulates through carrying forward. These are also known as privilege leaves, and they can be carried over for up to three years and vary by state according to the shop and establishment laws. These are redeemable against the employee’s basic income. The conditions for taking these leaves vary by company, although they are generally taken at least 10-15 days in advance.

One of the most significant benefits of carrying forward holidays is that it allows your business culture to be more flexible, which employees often prefer. It enables them to do things like prepare ahead of December if they want to build up additional vacation days for a major trip the following year. Carry forward has multiple different uses for employees of a firm.