Leave Encashment and Pay Benefits After Employee Death: Understanding the Rules for Government Employees

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postal employee death
Skeleton of a man with head on laptop in his office. This dedicated employee has worked himself to death!

I feel Sometimes like this image, because the work i felt some times makes me exhausted..Seriuosly funny right? But, In the unfortunate event of the death of a government employee while in service, several rules and regulations come into play regarding their pending benefits. One such common question is about leave encashment and the applicable pay, especially when an official was facing disciplinary action at the time of death. Let’s explore this situation and clarify the process.

The Scenario:

An official was under the punishment of withholding their next increment without cumulative effect for two years, starting from 01-01-2024. Due to this, their pay was reduced from ₹56900 to ₹55200. Unfortunately, the official passed away on 18-09-2024, while still in service. At the time of death, the official’s pay was ₹55200. The big question is: should their nominee receive leave encashment benefits based on the reduced pay or the original higher pay?

What Happens to Disciplinary Actions After Death?

The Central Civil Services (CCS) Pension Rules are quite clear about what happens when a government employee passes away. Upon the death of the employee, all disciplinary actions are automatically dropped. It’s like the case being closed, no strings attached. This means that any penalties that were in place, such as withholding increments or reducing pay, no longer apply after the employee’s death.

In simpler terms, the moment an employee passes away, they are no longer subject to any disciplinary punishment, no matter what it was. The family of the deceased employee becomes eligible for all benefits as if there were no penalties.

Pay Benefits and Leave Encashment:

When it comes to leave encashment, the nominee of the deceased employee is entitled to the full pay that the employee would have been drawing without the penalty. In this case, although the official was drawing a reduced pay of ₹55200 due to the penalty, the correct amount to be considered for calculating leave encashment is the original pay of ₹56900.

This rule applies not just to leave encashment but also to other benefits such as pension, gratuity, and any other dues payable to the family. The logic behind this is simple: once the employee has passed away, the penalty no longer exists, so the calculations for benefits are done as if the penalty never happened.

Immediate Steps for the Family:

  1. Inform the Department: It is important that the family, or anyone close to the deceased, informs the Divisional Superintendent (Divl Supdt) as soon as possible about the death. This will start the process of collecting pension papers and settling all dues.
  2. Pension Processing: The pension office will gather the necessary documents and begin processing all payments, including leave encashment, based on the higher pay of ₹56900.

Conclusion:

In situations where an official has passed away while still facing disciplinary action, it’s important to know that all penalties and charges are nullified upon their death. Their family or nominee will receive all benefits as per the original pay scale, without any reduction.

The rules are designed to provide comfort and clarity to the family, ensuring that they receive what is rightfully due to them. In the case described, leave encashment should be processed based on the higher pay of ₹56900, making sure the family is not penalized for any actions that were in place before the official’s unfortunate passing.

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