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B-213380 1 (1984-08-20)

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                         THE COMPTROLLER GENERAL
DECISION                 OP THE UNITE         STATE
                         WA6HINQTON. O.C. 2054U




FILE:    B-213380              DATE:    August 20, 1984

MATTER OF: William Corcoran -- Forfeiture of Restored
              Annual Leave
DIGEST:

       An employee has no rights to further
       restoration and lump-sum payment of
       unused forfeited and restored 1977 leave,
       which was forfeited again at the end of
       the 1980 leave year. Although agency
       personnel gave him erroneous advice
       concerning his restored leave and failed
       to fix the date, as required by the regu-
       lations, for the running of the 2 years
       in which to use-or-lose his restored
       leave, no legal authority exists for
       further restoration of leave once
       forfeited a second time.


     Mr. William Corcoran, a retired employee of the
Department of Energy (DOE), has appealed Claims
Settlement No. Z-2837607, dated April 23, 1982, issued
by our Claims Group, which denied his request for lump-sum
payment of 184 hours of restored leave.

     The issue on appeal is whether the 2-year time limit
in which the employee must use-or-lose his restored leave
may be waived when agency personnel repeatedly gave him
erroneous advice and failed to specify the time limits
for use of the restored leave. We hold that no legal
authority exists to permit retention or payment of
restored leave after the 2-year period runs since
employees are charged with constructive knowledge of
statutory provisions and of their implementing regula-
tions. Failure of an agency to counsel their employees
properly regarding their rights to restored leave is not
administrative error, absent a specific agency regulation
requiring such counseling.

                        BACKGROUND

     The facts, drawn from the record, are as follows.
In November 1977, Mr. Corcoran scheduled 200 hours of
annual leave from November 17, 1977 to December 30, 1977.
When it appeared that major programmatic requirements
required Mr. Corcoran's continued presence at the agency,

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