B-129503, SEP. 24, 1957

B-129503, SEP. 24, 1957

TO SECRETARY OF STATE:

THE LETTER FROM THE ACTING ASSISTANT SECRETARY-CONTROLLER, DATED AUGUST 6, 1957, REQUESTS OUR RECONSIDERATION OF DECISION OF DECEMBER 3, 1956, B- 129503 (36 COMP. GEN. 447), TO YOU. IN OUR DECISION WE OBJECTED TO A LUMP -SUM PAYMENT FOR ANNUAL LEAVE MADE TO A LOCAL EMPLOYEE HAVING INCLUDED BOTH UNITED STATES NATIONAL AND LOCAL HOLIDAYS BECAUSE THE PERMISSIVE LANGUAGE OF YOUR REGULATIONS DID NOT MAKE CERTAIN WHICH LOCAL EMPLOYEES ARE TO BE EXCUSED FROM WORK ON UNITED STATES NATIONAL HOLIDAYS OR WHICH LOCAL HOLIDAYS ARE TO BE OBSERVED.

THE REQUEST FOR RECONSIDERATION AND REMOVAL OF THE EXCEPTIONS AGAINST VOUCHERS IN FOREIGN SERVICE ACCOUNTS BECAUSE OF INCLUSION OF LOCAL HOLIDAYS IN THE COMPUTATION OF LUMP-SUM LEAVE PAYMENTS TO LOCAL EMPLOYEES IS BASED UPON THE FURNISHING OF ADDITIONAL FACTS. IT IS POINTED OUT THAT IN CONDUCTING OPERATIONS ABROAD IT IS NECESSARY FOR FOREIGN SERVICE POSTS TO COMPLY WITH MANY LOCAL CUSTOMS AND PRACTICES OF THE AREA INVOLVED INCLUDING THE OBSERVANCE OF UNITED STATES NATIONAL AND LOCAL HOLIDAYS AND THAT IT WOULD BE DIPLOMATICALLY INDISCREET AND IMPRACTICABLE FOR POSTS TO REMAIN OPEN FOR BUSINESS ESPECIALLY ON SOME OF THE MORE IMPORTANT HOLIDAYS. IT IS ALSO POINTED OUT THAT IT IS IMPRACTICABLE TO PRESCRIBE UNIFORM LOCAL HOLIDAY LISTS FOR POSTS ABROAD AND THAT ACCORDINGLY EACH POST PUBLISHES LOCALLY A LIST OF THE HOLIDAYS, BOTH LOCAL AND UNITED STATES, THAT ARE TO BE OBSERVED. SUCH LISTS, IT IS STATED, WILL BE MADE AVAILABLE FOR AUDIT PURPOSES. FURTHER IT IS POINTED OUT THAT THE REGULATIONS WILL BE REVISED TO MAKE CLEAR THAT LOCAL EMPLOYEES HAVE A RIGHT TO BE EXCUSED ON PROPERLY DESIGNATED LOCAL HOLIDAYS WITHOUT LOSS OF PAY OR LEAVE. THUS, THERE WILL EXIST THE SAME DEGREE OF CERTAINTY WITH RESPECT TO WHICH LOCAL EMPLOYEES WILL BE DISMISSED ON LOCAL HOLIDAYS AS EXISTS WITH RESPECT TO WHICH AMERICAN EMPLOYEES WILL BE DISMISSED ON AMERICAN HOLIDAYS.

IN ADDITION, THE REQUEST POINTS OUT THAT IT IS YOUR DEPARTMENT'S BELIEF THAT CREDIT SHOULD NOT BE ALLOWED FOR UNITED STATES NATIONAL HOLIDAYS IN LUMP-SUM PAYMENT FOR ANNUAL LEAVE TO LOCAL EMPLOYEES AFTER MARCH 1, 1957. IT IS POINTED OUT THAT IT WOULD GREATLY RELIEVE THE ADMINISTRATION OF YOUR LOCAL EMPLOYEE PROGRAM IF CREDIT COULD BE ALLOWED IN THE SETTLEMENT OF THE FEW (APPROXIMATELY 5 KNOWN) ACCOUNTS OF OFFICERS OF THE FOREIGN SERVICE IN WHICH PAYMENTS WERE MADE FOR AMERICAN HOLIDAYS PRIOR TO MARCH 1, 1957. SEVERAL REASONS FOR SUCH RELIEF ARE FURNISHED AND THEY READ AS FOLLOWS:

"1. INSUFFICIENT CLARITY AND FIXITY OF THE EXISTING REGULATIONS TO PREVENT THESE PAYMENTS UNTIL RECEIPT BY THE POSTS OF A DEPARTMENTAL INSTRUCTION OF JANUARY 24, 1957, SUSPENDING PAYMENTS FOR LOCAL AND AMERICAN HOLIDAYS IN LUMP SUM LEAVE PAYMENTS TO LOCALS UNTIL FURTHER NOTICE. ACCORDING TO RECORDS OF THE DEPARTMENT, THIS CIRCULAR WAS NOT RECEIVED BY ALL POSTS UNTIL LATE IN FEBRUARY 1957. THE DEPARTMENT WILL AMEND ITS REGULATIONS TO SPECIFICALLY PROHIBIT ALLOWING ANY FURTHER CREDIT FOR AMERICAN HOLIDAYS IN LUMP SUM PAYMENTS TO LOCAL EMPLOYEES.

"2. THE SMALL AMOUNT INVOLVED IN ANY INDIVIDUAL CASE. THE AVERAGE LOCAL SALARY IS APPROXIMATELY $6 PER DAY.

"3. THE DIFFICULTY OF LOCATING ALL FORMER EMPLOYEES AND COLLECTING THE SMALL OVERPAYMENTS FROM THEM.

"4. THE DANGER OF HARMFUL PUBLICITY WITH RESULTANT DAMAGE TO AMERICAN PRESTIGE THAT MIGHT RESULT FROM AN ATTEMPT TO RECOVER THESE SMALL OVERPAYMENTS TO FORMER EMPLOYEES.'

FROM THE FOREGOING IT APPEARS THAT YOUR REGULATIONS ARE TO BE REVISED SO AS TO COMPLY WITH OUR DECISION OF DECEMBER 3, 1956. THEREFORE AND IN VIEW OF THE GENERAL MISUNDERSTANDING AS TO WHICH HOLIDAYS WERE TO BE INCLUDED IN LUMP-SUM PAYMENTS TO LOCAL EMPLOYEES FOR ANNUAL LEAVE UPON SEPARATION, OUR AUDIT DIVISION IS TODAY BEING INSTRUCTED TO REMOVE THE EXCEPTIONS.