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Cash Payment in Lieu of Unutilised Earned Leave for Compulsorily Retired Employees

In Governance & Administration, Labour & Employment, Legislation & Law
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This Office Memorandum clarifies the rules regarding cash payment for unutilised earned leave for Central Government employees who are compulsorily retired as a disciplinary measure. It specifies that encashment is not allowed if a cut in pension is also applied, but is permissible if no pension cut is imposed. The orders apply to all Central Government servants compulsorily retired on or after February 6, 1987. The memorandum references previous orders from the Ministry of Finance and outlines distribution to various government bodies and departments.

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NO. 14028/18/86-Estt.(L)
Government of India/Bharat Sarkar
Ministry of Personnel, Public Grievances
and Pensions
Department of Personnel & Training
(Karmik Aur Prashikshan Vibhag)

Now Delhi, dated the 22 June, 1987

OFFICE MEMORANDUM

Subject:- Cash payment in lieu of unutilised earned leave on the date of retirement to the Central Government employees who are compulsorily retired as a measure of punishment under the disciplinary rules.

The undersigned is directed to refer to para 4 of the Ministry of Finance (Department of Expenditure) O.M. No. P-14028/1/77-E.IV dated the 29th October, 1977, according to which the orders for encashment of unutilised earned leave are not applicable in cases of employees who are compulsorily retired as a measure of punishment under the disciplinary rules. The question whether the employees who are compulsorily retired as a measure of punishment under the disciplinary rules should be allowed the benefit of encashment of unutilised earned leave has been under the consideration of the Government.

  1. It has now been decided that where a Government servant is compulsorily retired as a measure of penalty and in whose case the out in pension is ordered, he would not be allowed encashment of earned leave at the time of such compulsory retirement.

  2. However, encashment of unutilised earned leave will be allowed to those Central Government employees who are compulsorily retired as a measure of punishment under the disciplinary rules where the disciplinary authority has not imposed any out in the amount of pension. This will be subject to such other general conditions as are laid down in respect of leave encashment.

  3. These orders will apply to Central Government servants compulsorily retired on or after 6.2.1987.

  4. In so far as persons serving in Indian and Accounts Department are concerned, this issues after consultation with the Comptroller and Auditor General of India.

(St. HARIHARAN)

UNDER SECRETARY TO THE GOVERNMENT OF INDIA

TELEPHONE NO. 3013913

All Ministries/Departments of the Govt. of India etc. etc.

Copy also forwarded to:

  1. The Comptroller and Auditor General of India and all States under his control w.r.t. their I.D.No.328-4ndit.I/99-85, dated 2nd April, 1987.

  2. Controller General of Accounts/Controller of Accounts, Ministry of Finance.

  3. Secretaries to Union Public Service Commission/Supreme Court of India/Election Commission/Lok Sabha Sectt./Rajya Sabha Sectt./Cabinet Sectt./Central Vigilance Commission/President’s Sectt./Racq President’s Sectt./Prime Minister’s Office/Planning Commission.

  4. Department of Personnel & Trg. (ATS Division)/JCA/Admn.Sec.

  5. Addl. Secretary (Union Territories), Ministry of Home Affairs.

  6. All State Governments and Union Territories.

  7. Governors of all States/St. Governors of Union Territories.

  8. Secretary, National Council (Staff Side), 13-C, Feroz Shah Road, New Delhi.

  9. All Members of the Staff Side of the National Council of JCM/Departmental Council.

  10. All Officers/Sections of the Department of Personnel and Training/Department of Administrative Reforms & Public Grievances/Department of Pension & Pensioners’ Welfare.

  11. Min. of Finance, Deptt. of Expenditure wath. their I.D.No. 431-77/87 dt. 1.4.1987.

  12. Legis. v. Department, their I.D.No. 431-77/87 dt. 1.4.1987.

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