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The Department of Personnel and Training (DOPT) has considered the eligibility/entitlement to leave encashment on appointment of Government Servants in Central Public Enterprises. The Ministry has clarified that, as per DoPT OM No. 28016/5/85-Estt.(C) dated 31/1/1986, appointment of an officer in a Central Public Enterprise after acceptance of his technical resignation from Government is treated as immediate absorption. As per the terms and conditions contained in that OM, a Central Government Servant taking appointment in the Central Public Enterprises on Immediate Absorption basis was entitled to encashment of Earned Leave to his credit at the time of acceptance of his resignation from Government Service, subject to a limit of 180 days. Half Pay Leave stood forfeited. (The limit of Earned Leave which could be thus encashed was later raised to 300 days). The method of calculation of Earned Leave /Half Pay Leave and the conditions or sanction of encashment are laid down in the O.M.
For complete details, download DOPT OM No. 14028/3/2011 -Estt(L) dated 24.05.2011.