Finance (BPE) Department.
Fort St. George. Secretariat
Chennai-600 009
From
Thiru K Shanmugam. IA.S
Principal Secretary to Government
To
The Chief Executive Officers of State Public Sector
Undertakingsl Statutory Boards,
Sir / Madam.
Sub State Public Sector Undertakings /boards- Encashment of Unearned
Leave on Private Affairs at the time of Retirement-revised instructions
Issued-regarding
Ret: 1) Government Letter No,21494/BPE/2003-1 dt.1 14.2003
2) Government Letter No 37568/BPE12006 dt 28.1 2008
In the Government letter 1st cited, it was indicated that though the State Public
Sector Undertakings / Statutory Boards are implementing the scheme of encashment of Earned Leave to their employees subject to the maximum of 240 days, the Government have not extended the benefit of encashment of Unearned Leave on Private Affairs to the employees of State Public Sector Undertakings/ Statutory Boards as in the case of Government employees with reference to G.O Ms No 488/Fin (Pension) Deptdt.12.8.96. The Government had accordingly directed the Chief Executive Officers of State Public Sector Undertakings / Statutory Boards to allow encashment of Earned Leave at credit of the employees of State Public Sector Undertakings I Statutory Boards upto a maximum of 240 days and the encashment of leave salary at the time of retirement shall be made 50% in cash and the balance 50% in small saving certificates after obtaining the option of the employee to choose either the post office Time Deposit for 3 years or the NSC (VIII issue) for six years The encashment of leave salary at the time of retirement shall be based on pay plus Dearness Allowance only and other allowances should not be taken into account.
2) In the Government letter 2nd cited, the Government issued further directions
that the scheme of Unearned Leave on Private Affairs ordered in GO.Ms.No 488/Fin
(Pension) Dept dt.12 8.96 for Government servants may also be extended to the
employees of all Statutory Boards and State Public Sector Undertakings who are
getting Government scales of pay. subject to the condition that the concerned,
Board! State Public Sector Undertakings should not seek financial assistance
from the Government for this purpose. But this scheme should not be extended to
the employees who are governed by the periodic Wage Settlement under Industrial
Disputes Act.
3) It has come to the notice of the Government that a few State Public Sector
Undertakings have extended the benefit of encashment of Unearned Leave on
Private Affairs to their employees even though there is no provision in their Service
rules for extension of such benefit and seek later orders for ratification from the
Government
4) The Government after careful examination, issue the following directions
(I) only those Statutory Boards / State Public Sector Undertakings whose Service
Regulations / Service Rules provide for extension of this scheme may
continue to sanction the benefit of encashment of Unearned Leave on Private
Affairs to their employees at the time of their retirement from the date of the
orders issued in Govt Lr,No 37568/BPE/2006 dt,28-O1-08 without seeking
financial assistance from Government.
(ii) those Statutory Boards / State Public Sector Undertakings whose Service
Regulations I Service Rules do not contain provision for availing of Unearned
leave on Private Affairs, this scheme should not be extended to its employees
Further, this scheme should not be introduced as a new benefit
5)The Chief Executive Officers of the State Public Sector Undertakings /
Boards are requested to place this letter before the Board of Directors in the next
meeting