Wednesday, 25 May 2011

Encashment of Leave to be granted to Government Servants on their appointment in Central Public Enterprises

Copy of Office Memorandum

Subject : Encashment of Leave to be granted to Government Servants on their appointment in Central Public Enterprises

The undersigned is directed to state that this Department has been receiving references from various Ministries/Departments seeking clarification regarding the entitlement to leave encashment on appointment of Government Servants in Central Public Enterprises.

2. As per DoPT OM No. 28016/5/85-Estt.(C) dated 31/1/1986, appointment of an officer in a Central Public Enterprise after acceptance of his technical resignation from Government is treated as immediate absorption. As per the terms and conditions contained in this OM, a Central Government Servant taking appointment in the Central Public Enterprises on Immediate Absorption basis was entitled to encashment of Earned Leave to his credit at the time of acceptance of his resignation from Government Service, subject to a limit of 180 days. Half Pay Leave stood forfeited. (The limit of Earned Leave which could be thus encashed was later raised to 300 days).

3. It i s clarified that a s per rule 39-D of the CCS (Leave) Rules,1972, the calculation of leave encashment in case of permanent absorption in Public Sector Undertaking/Autonomous Body wholly or substantially owned or controlled by the Central/State Government will be as per rule 39(2)(b) which has been amended vide Notification GSR 170 dated 1/12/2009 to read as under:-

The cash equivalent of leave salary under Clause (a) shall be calculated as follows and shall be payable in one lumpsum as a one time settlement -

(i)Cash equivalent for
earned leave
=Pay admissible on the date of
retirement plus Dearness
Allowance admissible on that
XNumber of days of  unutilized earned
leave at credit  subiect to the total
of earned leave and  Half Pay Leave at credit not  exceeding 300 days.
(ii)cash payment in lieu of Half Pay
Leave component
=Half Pay Leave salary admissible
on the date of retirement plus
Dearness Allowance admissible on that date
XNumber of days of  Half Pay Leave at
credit subject to the total of Earned
Leave and Half Pay Leave at credit not
exceeding 300 days


No commutation of Half Pay Leave shall be permissible to make up the shortfall in Earned Leave.

4. All Ministries/Departments may note for further action accordingly.

5. Hindi version will follow.

(Zoya C.B.)
Under Secretary to the Government of India

Original Order

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