The Punjab and Haryana high court has held that employees of government-aided private colleges are entitled for leave encashment.
The HC bench of justice Kuldip Singh said employees would be entitled to encashment of their accumulated earned leave, subject to maximum limit permissible under the rules. “The leave encashment shall be first paid by the management of the privately managed aided colleges then it can claim reimbursement of the same from the government under the heading of pay,” the HC bench said in its order.
The order came on petitions of some retired principals and lecturers of various Punjab colleges affiliated to Punjabi University and Panjab University, Chandigarh, who had raised issues of leave encashment, gratuity payment etc before the court in 2005.
The court ordered that an interest of 9% on the delayed payments be also paid to petitioners. The government said leave encashment was to be paid by colleges, not the government.
The bench observed that earned leave availed by the teacher during his service is treated as a part of the salary when the teacher is in service.
“Therefore, after the retirement, it cannot be said that the said earned leave, which was not availed by him in the interest of the duties to teach the students, can be excluded from the definition of salary after the retirement,” the HC bench said adding the admissible earned leave, which can be encashed under the rules, is covered under the term ‘pay’ and thus, covered under the grant-in-aid scheme of the government. It is for the management to first pay and then claim it as a part of the salary, as done in case of serving employees.
The court also held that gratuity is not apart of grant-in-aid scheme and payment is to be made by the management.