- Under the idea of “carry forward,” any unused leave that remains in an employee’s leave quota is carried over to the following year, where the employee might use it. Typically, carryforward is completed at the conclusion of a fiscal year. Earned leaves are those that an employee accrues through carryover. Also referred to as privilege leave, they can be carried over for a maximum of three years and differ from state to state in accordance with the Shop & Establishment Act. The employee can cash these on their base pay. Although the requirements for taking these leaves vary from company to company, they typically require at least 15 days’ notice.
