Leave encashment for retired faculty: PU releases over ₹3 crore ahead of HC hearing today

HC on August 18 had directed the PU vice-chancellor and education ministry secretary, among others, to remain present before the court on September 9 if leave encashment amount to all those eligible is not disbursed by then

Ahead of the leave encashment matter once again coming up before the Punjab and Haryana high court on Friday, Panjab University (PU) in the last few days released over ₹3 crore for over 60 retired teachers in line with HC’s August 18 order..

The cash benefit was released after the PU syndicate in an emergent meeting last week decided that the earned leave encashment benefit for 300 days will be given to faculty members who were left out after the 2011 audit. (HT Photo)

The cash benefit was released after the PU syndicate – the varsity’s executive body – in an emergent meeting last week decided that the earned leave encashment benefit for 300 days will be given to faculty members who were left out. Leave encashment refers to arrears received in exchange for leaves not taken by an employee. The dues can be settled while quitting the job or on retirement.

The development came after HC on August 18 directed the vice-chancellor and education ministry secretary, among others, to remain present before the court on September 9 if leave encashment amount to all those eligible is not disbursed by then.

A senior university official said, “The payment is to be made to 62 petitioners and out of these, payment to 61, which is around ₹3 crore, has been released by the university. Payment for the other faculty member is in the process due to some technical issue.”

The HC directions came on the plea of retired faculty member Lalit Kumar Bansal and others, who had filed a contempt plea in August 2020, alleging that the varsity had not complied despite an undertaking before the court in January 2020. As per the court proceedings, the retired faculties were entitled to leave encashment for 300 days but the PU calendar allowed only up to 180 days.

Petitioners were left out after a 2011 audit

A local audit in 2011 had raised an objection against the leave encashment for 300 days, as it differed from the provisions under the PU calendar. Later, the varsity initiated the process to amend regulations. Finally, a decade later, on February 8, 2021, a gazette notification was issued wherein the PU senate, with sanction from the government, notified an amendment to the calendar, allowing leave encashment for up to 300 days.

However, the amendment came into force from the date of its notification, thus leaving out all those who retired after the 2011 audit objection. Now, the varsity may also approach the central government to implement the notification retrospectively.