Cash payment in lieu of leave (IREC - 550)
(A) In case of retirement on attaining the age of superannuation:
(1) (a) Where a Railway servant retires on attaining the normal age prescribed for retirement under the terms and conditions governing his service, the authority competent to grant leave shall, suo-motu, issue an order granting 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 retirement, subject to a maximum of 300 days.
(b) The cash equivalent of leave salary under clause (a) shall be calculated as follows and shall be payable in one lump sum as a one time settlement:-
(i) Cash equivalent for leave on average pay
Pay admissible on the date of retirement plus Dearness Allowance admissible on that date______________________ 30X
Number of days of unutilized leave on average pay at credit subject to the total of leave on average pay and leave on half average pay not exceeding 300 days
(ii) Cash payment in lieu of leave on half average pay component
=
Leave on half average pay salary admissible on the date of retirement plus Dearness Allowance admissible on that date_____ 30 X
Number of days of leave on half average pay at credit subject to the total of leave on average pay and leave on half average pay at credit not exceeding 300 days
Note: - The overall limit for encasement of leave including both leave on average pay and leave on half average pay shall not exceed 300 days.
(c) To make up the shortfall in leave on average pay, no commutation of leave on half average pay shall be permissible.
(B) 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 - Encasement of underutilized 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: Railway Board’s letter No.F(E)III/2006/LE-1/1 dated 20.3.2006.)
(C) In case of invalidation from service:-
(1) A Railway servant who is declared by a Medical Authority to be completely and permanently incapacitated for further service may be granted, Tuamotu, by the authority competent to grant leave, cash equivalent of leave salary in respect of both leave on average pay and leave on half average pay, if any, at the credit of the Railway servant on the date of his invalidation from 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) A Railway servant not in permanent employ or temporary employ of more than 3 years shall not, however, be granted cash equivalent of leave salary in respect of leave on half average pay standing at his credit on the date of his invalidation from service.
(D) In case of re-employment:-
A Railway servant, who is re-employed after retirement may, on termination of his re-employment, 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 of termination of his re-employment subject to a maximum of 300 days, including the period for which encasement was allowed at the time of retirement and the cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550.
(E) In case of resignation or quitting of service :
A railway servant may be granted, suo-motu, by the authority competent to grant leave, cash equivalent in respect of leave on average pay at his credit on the date of cessation of service to the extent of half of such leave at his credit subject to a maximum of 150 days.
(Authority: - Railway Board’s letter No. F(E)III/2008/LE-1/2 dated 13.04.2010) ------ACS No.111
(F) In case of permanent absorption in Public Sector Undertaking/ Autonomous body wholly or substantially owned or controlled by the Central /State Government:
A railway servant who has been permitted to be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government or State Government or in or under a body controlled or financed by one or more than one such Government shall be granted, suo moto, by the authority competent to grant leave cash equivalent of leave salary in respect of both leave on average pay and leave on half average pay, if any, at the credit of the Railway servant on the date of absorption subject to a maximum of 300 days and the cash equivalent of leave salary payable shall be calculated in the same manner as provided for in sub-rule (A)(1)(b) of Rule 550".(Authority:-F(E)III/2008/LE-1/2 dated 27-10-11) acs no.119
