Carry Forward

Meaning & Definition

The term carry forward describes the act of taking advantage of an entitlement (like unused leave days) by “carrying it forward” into a future period. In HR and Payroll management practices, “carry forward” typically refers to how many available “paid” leave days are allowed to be transferred to the next year; this practice is governed by individual company leave policy provisions.

Important aspects of Carry Forward

• Encourage employees topPlan for maximum utilisation of leave.
• Prevent loss of employee benefits earned through service.
• Improve transparency of leave and attendance history.
• Provide opportunities for high employee satisfaction and flexibility.
• Simplify leave tracking and payroll processing.

Governance & Policy Alignment

• Currently, no specific statutory requirement is related to this term.
• Internal leave, attendance, and payroll policies are governed by other internal policies.
• These policies can include rules governing eligibility, limits, and expiring of carry-forward balances. 
• Additionally, automated tracking through HRMS provides a high level of accuracy for employee leave, attendance, and payroll usage and carries these balances forward accurately.