Hi Arati! I'd like to answer ur queries based on the provisions of the Industrial Employment(Standing Orders)Act,1946 in general & the Tamilnadu Payment of Subsistence Allowance Act,1981 (which is similar to the ones in vogue in the states of West Bengal n Kerala) in particular.
As u are aware, 'suspension' is an interim decision of an employer which results in the temporary debarment of an employee from attending to his office n performing his functions in the establishment on the ground of (1)contemplation or pendency or non-passing of final order even after completion of an enquiry into grave charges OR (2) pendency of investigation or trial of a complaint against the employee of any criminal offence and its final non-disposal. The corollary is that the employment-relationship is not snapped off n he still remains as an employee for all practical purposes with only certain modified rights stated below befitting his temporary debarment:
(1) RIGHT TO SUBSISTENCE ALLOWANCE
Payment of subsistence allowance is an incidence of Article 21 of the Constitution and not a bounty.
The denial of subs.allowance by the employer would tantamount to violation of the Principles of Natural Justice n would entail the entire dscp. proceedings n the
consequent punishment,if any nullified by the Court.
It has to be paid at the rate specified in the Standing Orders or as per the provisions of any applicable statute providing for the same on the dates so specified.
IT should not be reduced or dispensed with for any reasons other than those mentioned thereof in the Standing Orders or the applicable statute.
The employee shall not be liable to refund or forfeit any part of the sub.allnce.
According to a judgment delivered by the ho'ble High Court of Karnataka in Syndicate Bank v. B.A.Bhat--(1993-I-LLJ 152) ,in the absence of specific rule re-
-garding payment of sub.allnce, the employee have to be paid his full salary.
Since sub.allwnce is a payment for not any work or services rendered, bonus can not be claimed nor any deductions should be effected.
If the delinquent is exhonorated from the charges lvelled against him, he is entitled to his usual salary including increment if any, due but not sanctioned on a/c of
suspension, minus the amount received as sub.allnce.
18th February 2013 From India, Salem