Carry Forward | Meaning and Definition

What is carry forward?

Carry forward is a concept where unutilized leave accumulated over the financial year is carried over to the following year. Generally, carry forward is done at the end of the financial year so employees can redeem the balanced leave in the next year. The leaves accrued by the employee through carrying forwarded leaves are also called earned leaves or privilege leaves.

Benefits of Carry Forward Leaves

One of the most significant benefits of carrying forward leaves is that it allows your business to be more flexible. Furthermore, it allows employees to plan ahead of the financial year if they want to build up additional vacation days for a major trip the following year.