Carry Forward is a concept where if an employee has unutilized leaves in his/her leave quota they get carry forwarded to the next year and the employee can avail the same in next year. Carryforward is usually done at the end of a financial year. The leaves earned by the employee through carryforward are known as earned leaves. These are also known as privilege leave this can be carry forward for the quantum up to a total of three years and vary from state to state as per the shop & establishment act. These are encashable on basic salary to the employee. the condition for taking these leaves usually differs from company to company but normally in advance at least 15 days.