Rule 39-D of the CCS (Leave) Rules, 1972 deals with situations where a government servant resigns from Government service to take up a permanent appointment in a Public Sector Undertaking (PSU) or an Autonomous Body wholly or substantially owned/controlled/financed by the Central or State Government.
The rule ensures that such employees are not deprived of the leave benefits they had accrued during their government service, even though they shift to a PSU/Autonomous Body.
Key Provision
- A Government servant who is permanently absorbed in a PSU or an Autonomous Body will be granted cash equivalent of leave salary for the Earned Leave (EL) at his credit.
- This benefit is granted suo motu (automatically) by the competent leave-sanctioning authority.
- The maximum number of days encashable is 300 days.
- The calculation method is the same as laid down in Rule 39(2)(b).
Important Note
The term “permanent absorption” under Rule 39-D means:
- The Government servant applied for the post in PSU/Autonomous Body through proper channel, and
- Resigned from Government service to take up that appointment.
This ensures that only genuine cases of permanent absorption are covered and not resignations made for other personal reasons.
Formula for Calculation
As per Rule 39(2)(b) of the CCS leave rules
Illustrations
Illustration 1:
- Employee X resigns from Government service after being selected for a PSU post through proper channel.
- At the time of absorption, he has 250 days of Earned Leave at credit.
CashEquivalent=30(60,000+12,000)×250=3072,000×250=2,400×250=₹6,00,000
Illustration 2:
- Employee Y has 320 days of EL at credit but resigns for PSU absorption.
- Since the maximum encashable limit is 300 days, calculation will be restricted to 300 days.
Legal References
- DoPT Notification No. 13026/2/90-Estt.(L), dated 22.10.1990
- DoPT Notification No. 13026/2/90-Estt.(L), dated 20.04.1993
