An employee joined the services under the Punjab Government on 11.09.2008. He resigned on 15.09.2022, having served for 14 years and 5 days, without making any nomination. He passed away on 02.11.2022. Now, his mother, Smt. Gurmeet Kaur, has applied to the bank for his retiree dues. My inquiry is regarding Leave Encashment.
Leave Encashment Rules
As per Rule 7.5(1), 3.17A(1)(v) read with the Note at Rule 8.2 of the Punjab Civil Services Rules, Volume-I Part-I, leave encashment is not to be granted. However, according to Note 2(ii) of Rule 8.138 A of the Punjab Civil Services Rules, Volume-I Part-I, which relates to Terminal Leave, it is stated that no Terminal Leave will be admissible if the employee resigns of his own volition unless the resignation is due to ill-health or reasons beyond his control. Nevertheless, discretion is given to the Sanctioning Authority to allow leave not exceeding half the amount of earned leave which the Government employee can avail of at a time.
Service Counting for Leave
According to Chapter VIII pertaining to Leave, the Note subjacent to Rule 8.2 concerning Service Counting For Leave states that resignation from public service, even if followed immediately by re-employment, should entail forfeiture of past service for the purpose of leave under the rules in this chapter. Therefore, it should constitute an "Interruption of duty," meaning forfeiture of past service based on the interruption of duty without any claim over credit for the leave earned before resignation.
Kindly guide.
From India, Jalandhar
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Leave Encashment Rules
As per Rule 7.5(1), 3.17A(1)(v) read with the Note at Rule 8.2 of the Punjab Civil Services Rules, Volume-I Part-I, leave encashment is not to be granted. However, according to Note 2(ii) of Rule 8.138 A of the Punjab Civil Services Rules, Volume-I Part-I, which relates to Terminal Leave, it is stated that no Terminal Leave will be admissible if the employee resigns of his own volition unless the resignation is due to ill-health or reasons beyond his control. Nevertheless, discretion is given to the Sanctioning Authority to allow leave not exceeding half the amount of earned leave which the Government employee can avail of at a time.
Service Counting for Leave
According to Chapter VIII pertaining to Leave, the Note subjacent to Rule 8.2 concerning Service Counting For Leave states that resignation from public service, even if followed immediately by re-employment, should entail forfeiture of past service for the purpose of leave under the rules in this chapter. Therefore, it should constitute an "Interruption of duty," meaning forfeiture of past service based on the interruption of duty without any claim over credit for the leave earned before resignation.
Kindly guide.
From India, Jalandhar
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Taxability of leave encashment on resignation.doc