IREC Rule No.550(B): Cash Payment In Case Of Un-utilized Leave On Average Pay In Case Of Premature / Voluntary Retirements

550(B).Cash Payment Of Un-utilized Leave On Average Pay In Case Of Retirement Other Than On Attaining The Age Of Superannuation:- 

 (1)  In Cases Of Premature / Voluntary Retirement:  

(i)      A Railway servant who retires by giving notice to the Government or is retired by the Government by giving him notice or pay and allowances in lieu of such notice, in accordance with the terms and conditions of his service may be granted, suo-motu, by the authority competent to grant leave, cash equivalent of the leave salary in respect of both leave on average pay and leave on half average pay at his credit, subject to a maximum of 300. The cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550.

(ii)      Where the services of a Railway servant are terminated by notice or by payment of pay and allowances in lieu of notice, or otherwise in accordance with the terms and conditions of his appointment, he may be granted, suo-motu, by the authority competent to grant leave, cash equivalent in respect of both leave on average pay and leave on half average pay at his credit on the date on which he ceases to be in service, subject to a maximum of 300 days and the cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550.

(2)     In Case Of Retirement From Service On Attaining The Age Of Retirement While Under Suspension Or While Disciplinary Proceedings Are Pending Against Him At The Time Of Retirement:-  

The authority competent to grant leave may withhold whole or part of cash equivalent of both leave on average pay and leave on half average pay in the case of a railway servant who retires from service on attaining the age of retirement while under suspension or while disciplinary or criminal proceedings are pending against him, if in the view of such authority there is a possibility of some money becoming recoverable from him on conclusion of the proceedings against him. On conclusion of the proceedings he will become eligible to the amount so withheld after adjustment of Railway dues, if any.

Railway Ministry’s Decision: Encashment of unutilized leave on average pay and leave on half average pay will be allowed to those Railway servants who are compulsorily retired as a measure of punishment under the disciplinary rules even if a cut in pension (including gratuity) has been ordered. In such cases, the authority competent to grant leave can sanction cash equivalent of leave salary for both leave on average pay and leave on half average pay, if any, at the credit of the Railway servant on the date of such retirement, subject a maximum of 300 days. The cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550.

[Authority:  RBE No.29/2006, No.F(E)III/2006/LE-1/1, 20.03.2006, ACS No.98 and, RBE No.53/2010, No.F(E)III-2008LE-1/2, 13.04.2010, ACS No.111]