(1) On a question raised as to whether the rule in the last sub-paragraph of Article 44 of the Audit Code is applicable to the case of an officer appointed for a short-term, on a contract, who on leaving service under a State Government, on the expiry of his agreement, is granted all the leave certified to be admissible to him, and takes up employment under another State Government during such leave, it has been decided as follows, in consultation with the Govt. of India :
If the terms of a temporary officer's contract permit him to take leave, and enjoy leave salary after the termination of his work, with a State Government, he will, while on such leave, be on a footing different from that of a man in ordinary permanent service. What the State Government is bound to give him is, in effect, pay at certain fixed rates for specified period after he has ceased to serve it. During this period the State Government has no control over his movements and cannot order him to take complete rest except by making use of Rule 69. If the original employing Government gives permission under Rule 69, the officer may take up employment under another Government during his leave. As each State Government has now full powers to make leave rules for the class of Government servants in question, any restriction of the kind laid down in the last sub-paragraph of Article 44 of the Audit Code is inconsistent with the present constitutional position. The restriction in that article which is based on Finance Department Resolution No. 3205-P, Dt. 27-6-1910, applies therefore to servants of the Union Government only. (2) This rule should not be construed as permitting a Government servant who avails himself of leave on medical certificate, to undertake regular employment during leave.
[G.O.Ms.No. 24, Finance, Dt. 8-1-1931]
(3) An officer of the State service who is substantively promoted to the corresponding All India Service becomes or acquired that status of a member of the latter service and as such under Rule 69(b) the sanction of the President of the Republic of India is necessary to his taking up private employment in India, while on leave.
(4) The Inspector-General of Police or the Commissioner of Police as the case may be is competent to permit members of the Police Subordinate Service to accept private employment outside Indian Union while on leave preparatory to retirement.
(5) Although the grant of permission to take up private employment during leave on medical certificate is technically covered by the provisions of Rule 69, such an arrangement is clearly contrary to the spirit of the regulations as it is not the intention that the leave which can be obtained on the strength of a medical certificate should be allowed to a Government servant the state of whose health enables him to earn a competence by private employment. Rule 69 should not therefore be construed as permitting a Government servant who avails himself of leave on medical certificate to undertake regular employment during such leave.
Terms of re-employment to be granted to officers during leave preparatory to retirement, refused leave availed of during periods of re-employment and after termination thereof
(6) When a Government servant, who is on leave under Rule 86 is employed in any post under the State Government, he may continue to enjoy his leave concurrently with such employment but his leave salary, which may be drawn in addition to pay of the post in which he is employed will be restricted to the amount of leave salary admissible in respect of leave on half average pay.
[G.O.Ms.No. 2, Finance, Dt. 3-1-1959]
No leave will be earned in respect of such period of employment during leave. During such employment he may also be granted dearness and compensatory allowances, if any, admissible on the basis of pay. These allowances will neither be admissible on leave salary nor will the leave salary be taken into account in calculating the allowances.
Note 1 :— A Government servant may be permitted to avail of the refused leave either in whole or in part at any time during the period of re-employment eventhough leave earned during the period of re-employment is at his credit, if such a course is to his advantage. The leave salary for the period of such leave will be the same as would have been admissible to him in the normal course but for re-employment reduced by the amount of pension and or pension equivalent of gratuity and other retirement benefits, but he will not be entitled to draw his re-employment pay in addition to leave salary during the period of refused leave so availed of.
[G.O.Ms.No. 13, Finance, Dt. 18-1-1964]
The grant of such leave during the period of re-employment will, however, be conditional on the re-employing authority being able to grant any part of the refused leave during the period of re-employment. Note 2 : —(i) the unutilised portion of the refused leave may be allowed to be availed of on termination of the period of re-employment. This facility is not applicable to the Government servant who seeks purely private employment.
[G.O.Ms.No. 520, Finance, Dt. 22-11-1972]
(ii) the leave salary for the period of such leave would be the same as would have been admissible in the normal course but for re-employment reduced by the amount of pension and pension equivalent of gratuity and other retirement benefits.
(iii) the leave salary for the refused leave which is permitted to be availed of on termination of the period of re-employment would be borne by the Department which would have borne it, had the leave been enjoined before re-employment and not postponed.
(iv) to the extent the leave earned during the period of re-employment is not availed of during the period of re-employment itself it will be allowed to be availed of on termination of re-employment provided it is applied for and it is refused in exigencies of public service and provided further the leave on average pay or earned leave carried forward under (2)(i) above and the earned leave allowed as terminal leave shall together not to exceed the limit upto which leave on average pay or earned leave can be allowed at a time under the rules applicable to the Government servant concerned before retirement.
(v) if a person has on the date of re-employment enjoyed a portion of the refused leave, the leave admissible to him on finally remitting office after re-employment will be composed of the unavailed portion of such leave and the leave earned during the period of re-employment in such manner as the officer desires and the incidence of such leave salary will follow in which the two leaves are combined. Formal sanction to such leave should be accorded by the authority or authorities empowered to sanction prior to and during re-employment.
(7) When a Government servant is permitted, during leave preparatory to retirement before attaining the age of superannuation or during leave under Rule 86 to take up employment under the Union Government or a State Government or under a private employer or local body, his leave salary will also be restricted as in Ruling (6) above.
[(8) During re-employment after retirement from pensionable service, an officer's pension is either held in abeyance or is allowed to be drawn separately, a suitable reduction being made in the re-employed pay wherever necessary. An officer whose pension is drawn separately during re-employment and who proceeds on earned leave or half pay leave or commuted leave, will be entitled to leave salary based on the net re-employed pay (i.e., exclusive of the pension and/or pension equivalent of gratuity) and will continue of draw the pension separately in addition. An officer whose pension has been held in abeyance will draw the leave-salary based on the net-employed pay (i.e., pay minus the amount of the uncommuted pension and/or pension equivalent of gratuity) and in addition an amount equivalent to the pension which was held in abeyance. In either case the leave salary (exclusive of pension or the amount equivalent to pension which was held in abeyance and/or pension equivalent of gratuity) admissible during half pay leave or commuted leave will be subject to the monthly maximum of Rs. 750/- and Rs. 1,500/- respectively].
[G.O.Ms.No. 1480, Finance, Dt. 24-8-1959]
During the period of extraordinary leave, an officer whose pension has been held in abeyance will be allowed to draw only an amount equivalent to the pension which was held in abeyance, where the pension is drawn during the period of extraordinary leave also. The leave salary in respect of earned leave, half pay leave and commuted leave of officers, who were governed by the Contributory Provident System prior to retirement, will be based on the net re-employed pay. They will not draw any leave salary during the period of extraordinary leave.