I would like to know if any employee who is suspended for one week is entitled to a salary for the suspension period. Please provide me with the proper guidelines.
Thanks & Regards,
Sandip Chakraborty
From India, Kolkata
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1Thanks & Regards,
Sandip Chakraborty
From India, Kolkata
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Hi, If you giving the salary to him for suspension period then what is the use of suspension. Can anybody guide as per act?
From India, Hyderabad
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From India, Hyderabad
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Suspension Period and Employee Entitlements
During the suspension period, the employee is entitled to half wages as an allowance. Normally, suspension is implemented for a domestic inquiry, and the purpose of suspension is to prevent the employee from disrupting the inquiry proceedings.
Regards,
Padamnave Parashar
Manager HR
From India, Bhopal
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During the suspension period, the employee is entitled to half wages as an allowance. Normally, suspension is implemented for a domestic inquiry, and the purpose of suspension is to prevent the employee from disrupting the inquiry proceedings.
Regards,
Padamnave Parashar
Manager HR
From India, Bhopal
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Types of Suspensions
1. Suspension pending enquiry
2. Suspension as punishment
Standing orders provide for subsistence allowance in the case of suspension pending enquiry. If my memory serves me right, 50% of basic plus DA needs to be paid for suspension pending enquiry for the first three months, 75% for the next three months, and 100% if the enquiry is prolonged beyond six months.
In the case of punishment, no pay is payable. However, model standing orders restrict the number of days of suspension to 30. So when an employee is punished with a suspension of 7 days, no pay is payable.
Regards,
T. Sivasankaran
From India, Chennai
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1. Suspension pending enquiry
2. Suspension as punishment
Standing orders provide for subsistence allowance in the case of suspension pending enquiry. If my memory serves me right, 50% of basic plus DA needs to be paid for suspension pending enquiry for the first three months, 75% for the next three months, and 100% if the enquiry is prolonged beyond six months.
In the case of punishment, no pay is payable. However, model standing orders restrict the number of days of suspension to 30. So when an employee is punished with a suspension of 7 days, no pay is payable.
Regards,
T. Sivasankaran
From India, Chennai
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Dear Sirs, An allowance called subsistence allowance will be paid to the employee who is suspended pending inquiry. Salary will be paid after the inquiry results
From United States, Chicago
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From United States, Chicago
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Payment of subsistence allowance is due to an employee who is kept under suspension pending the result of an inquiry. This is as per the rules and depends on the period of days involved.
No remuneration is entitled to an employee who has been suspended from work after conducting an inquiry and suspension granted in the nature of punishment.
Regards,
Jagdish.K
Kochi
From India, Kochi
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No remuneration is entitled to an employee who has been suspended from work after conducting an inquiry and suspension granted in the nature of punishment.
Regards,
Jagdish.K
Kochi
From India, Kochi
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Understanding Suspension Reasons
Need to know the reason for suspension first. It is not always true that an employee makes a mistake; sometimes even the employer makes mistakes. With this regard, I would advise finding out the reason first, and then a proper decision should be taken.
From India, Hyderabad
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Need to know the reason for suspension first. It is not always true that an employee makes a mistake; sometimes even the employer makes mistakes. With this regard, I would advise finding out the reason first, and then a proper decision should be taken.
From India, Hyderabad
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The reason for suspension is not a question at any juncture, as it is the prerogative of every employer to suspend his/her employee, prohibiting or relieving them from work. If that suspension is not in the nature of a punishment, the concerned employee is eligible for Subsistence Allowance as per the norms stipulated in the relevant Act/Rules. The reason for suspension and a reasonable opportunity for a hearing shall be observed subsequent to suspension.
Regards,
Jagdish. K
Kochi
From India, Kochi
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Regards,
Jagdish. K
Kochi
From India, Kochi
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Sir, there is a correction in your views. Let me elucidate this.
1. There are certain forms of wages/emoluments of an employee that should not be considered for the calculation of Subsistence Allowance. The management must consider all remuneration except those specifically excluded in the statute for the calculation of Subsistence Allowance, such as Bonus, Gratuity, and employer contributions to Provident Fund, as per Sec. 2 of the respective Act.
2. When an employer suspends an employee pending investigation or inquiry into complaints or charges of misconduct, the contract of service is not rescinded, and the employer-employee relationship subsists. Thus, during suspension, the employee is entitled to receive subsistence allowance. In M/s. Kshetriya Sri Gandhi Ashram, Gorakhpur vs. Deputy Labour Commissioner/Prescribed Authority under Payment of Wages Act and Another, the Allahabad High Court explains subsistence allowance as a nickname for “reduced wages” or “reduced salary.” Such subsistence allowance should be paid at the rate of 50% of the wages which the workman was entitled to immediately preceding the date of such suspension for the first 90 days, and at the rate of 75% thereafter. If it prolongs beyond 6 months, then at 100% until the final decision. Labour Law Reporter, pg. no. 897, Allahabad High Court, August 2009.
3. In order to arrive at the one-day wage of a monthly paid employee, the dividing factor should be 26 days instead of 30 days. This is because a worker gets full month's wages not by remaining on duty for all 30 days within a month but by working for only 26 days, excluding Sundays which are paid holidays, besides other extra holidays that could also cause some marginal variation. This is confirmed by learned judges:
i. “Wages paid for the entire month should be taken as paid for all 30 days in the month in determining the rate of wages and not as paid for the actual number of working days. This contention runs counter to the well-accepted principle that wages payable to an employee for a month are wages paid for the actual number of days worked, which are taken as 26 days in a month after excluding Sundays, which are given as compulsory holidays for all establishments. The holiday on Sunday is earned by the employee by working on the remaining days of the month. The rate of wages has, therefore, to be arrived at by dividing the total amount of wages paid in a month by 26 days and not by 30 days. The argument to the contrary has been set at rest by the Supreme Court in D.W. Mills Ltd. v. M. P. Buch (1980, Labour & Industrial cases, 1052). The Supreme Court held that "the wages for 26 days are to be treated as monthly wages and not of days." (DBR Mills v. Appellate Authority. Division Bench Andhra High Court).
ii. Justice A.P. Sen, speaking for the Supreme Court, referred with approval to the judgment of the Gujarat High Court in Shri Digvijay Woollen Mills Ltd. v. Mahendra Prataprai Buch 1980 II LLJ 252 I (Gujarat), wherein the Gujarat High Court observed that a worker would get full month's wages not by remaining on duty for all 30 days within a month but by working for only 26 days. The other extra holidays might make some marginal variation in the 26 working days, but all Wage Boards and wage-fixing authorities or Tribunals in the country have always followed that pattern of fixation of wages by that method of 26 working days. The learned Judge also referred to the observation of the Gujarat High Court in Shri Digvijay Woollen Mills' case (supra) to the effect that ordinarily, of course, a month is understood to mean 30 days, but the manner of calculating gratuity payable under the Act to the employees who work for 26 days a month followed by the Gujarat High Court could not be called perverse, and that method was not anything unique or unknown. It may be pointed out that the explanation to sub-section (2) of Section 4 was added by Act 25 of 1984 subsequent to the said judgment of the Supreme Court. Therefore, it cannot be contended that the calculation of wages at 26 days a month under the Act is because of the explanation. The Supreme Court construed 15 days' wages to mean calculated on the basis of dividing the last drawn wages of a month by 26 and multiplying the same by 15. The mere fact that the agreement provides that the employee would be entitled to gratuity in addition to the compensation would make no difference for the calculation of the 15 days wages as mentioned above. In the instant case, the first respondent has followed the same method. In my view, wherever compensation or wages have to be calculated for 15 days, whether under the Payment of Gratuity Act or under settlement under Section 18 of the Industrial Disputes Act or any other agreement, unless otherwise expressly provided, it would only be on the basis of daily wage.
iii. It is to be kept in mind that the I.D. Act has been enacted for the benefit of the labour and therefore, even if two views were possible, the one which is favourable or more favourable to the workman should be accepted. The amount of compensation has thus to be worked out on the basis of entitlement of the workman for fifteen days and not half month's pay. A priori, it would follow that the entitlement cannot be worked out without calculating one day's wage or pay. For calculating one day's wage, a month has to be notionally treated as comprising 26 days and not 30 days as in a calendar month. Bennett Coleman And Co. Ltd. vs Presiding Officer, Labour Court: 2003 (2) BLJR 1379, (2003) IIILLJ 981 Patna High Court.
Regards,
Jagdish.K
Kochi
From India, Kochi
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1. There are certain forms of wages/emoluments of an employee that should not be considered for the calculation of Subsistence Allowance. The management must consider all remuneration except those specifically excluded in the statute for the calculation of Subsistence Allowance, such as Bonus, Gratuity, and employer contributions to Provident Fund, as per Sec. 2 of the respective Act.
2. When an employer suspends an employee pending investigation or inquiry into complaints or charges of misconduct, the contract of service is not rescinded, and the employer-employee relationship subsists. Thus, during suspension, the employee is entitled to receive subsistence allowance. In M/s. Kshetriya Sri Gandhi Ashram, Gorakhpur vs. Deputy Labour Commissioner/Prescribed Authority under Payment of Wages Act and Another, the Allahabad High Court explains subsistence allowance as a nickname for “reduced wages” or “reduced salary.” Such subsistence allowance should be paid at the rate of 50% of the wages which the workman was entitled to immediately preceding the date of such suspension for the first 90 days, and at the rate of 75% thereafter. If it prolongs beyond 6 months, then at 100% until the final decision. Labour Law Reporter, pg. no. 897, Allahabad High Court, August 2009.
3. In order to arrive at the one-day wage of a monthly paid employee, the dividing factor should be 26 days instead of 30 days. This is because a worker gets full month's wages not by remaining on duty for all 30 days within a month but by working for only 26 days, excluding Sundays which are paid holidays, besides other extra holidays that could also cause some marginal variation. This is confirmed by learned judges:
i. “Wages paid for the entire month should be taken as paid for all 30 days in the month in determining the rate of wages and not as paid for the actual number of working days. This contention runs counter to the well-accepted principle that wages payable to an employee for a month are wages paid for the actual number of days worked, which are taken as 26 days in a month after excluding Sundays, which are given as compulsory holidays for all establishments. The holiday on Sunday is earned by the employee by working on the remaining days of the month. The rate of wages has, therefore, to be arrived at by dividing the total amount of wages paid in a month by 26 days and not by 30 days. The argument to the contrary has been set at rest by the Supreme Court in D.W. Mills Ltd. v. M. P. Buch (1980, Labour & Industrial cases, 1052). The Supreme Court held that "the wages for 26 days are to be treated as monthly wages and not of days." (DBR Mills v. Appellate Authority. Division Bench Andhra High Court).
ii. Justice A.P. Sen, speaking for the Supreme Court, referred with approval to the judgment of the Gujarat High Court in Shri Digvijay Woollen Mills Ltd. v. Mahendra Prataprai Buch 1980 II LLJ 252 I (Gujarat), wherein the Gujarat High Court observed that a worker would get full month's wages not by remaining on duty for all 30 days within a month but by working for only 26 days. The other extra holidays might make some marginal variation in the 26 working days, but all Wage Boards and wage-fixing authorities or Tribunals in the country have always followed that pattern of fixation of wages by that method of 26 working days. The learned Judge also referred to the observation of the Gujarat High Court in Shri Digvijay Woollen Mills' case (supra) to the effect that ordinarily, of course, a month is understood to mean 30 days, but the manner of calculating gratuity payable under the Act to the employees who work for 26 days a month followed by the Gujarat High Court could not be called perverse, and that method was not anything unique or unknown. It may be pointed out that the explanation to sub-section (2) of Section 4 was added by Act 25 of 1984 subsequent to the said judgment of the Supreme Court. Therefore, it cannot be contended that the calculation of wages at 26 days a month under the Act is because of the explanation. The Supreme Court construed 15 days' wages to mean calculated on the basis of dividing the last drawn wages of a month by 26 and multiplying the same by 15. The mere fact that the agreement provides that the employee would be entitled to gratuity in addition to the compensation would make no difference for the calculation of the 15 days wages as mentioned above. In the instant case, the first respondent has followed the same method. In my view, wherever compensation or wages have to be calculated for 15 days, whether under the Payment of Gratuity Act or under settlement under Section 18 of the Industrial Disputes Act or any other agreement, unless otherwise expressly provided, it would only be on the basis of daily wage.
iii. It is to be kept in mind that the I.D. Act has been enacted for the benefit of the labour and therefore, even if two views were possible, the one which is favourable or more favourable to the workman should be accepted. The amount of compensation has thus to be worked out on the basis of entitlement of the workman for fifteen days and not half month's pay. A priori, it would follow that the entitlement cannot be worked out without calculating one day's wage or pay. For calculating one day's wage, a month has to be notionally treated as comprising 26 days and not 30 days as in a calendar month. Bennett Coleman And Co. Ltd. vs Presiding Officer, Labour Court: 2003 (2) BLJR 1379, (2003) IIILLJ 981 Patna High Court.
Regards,
Jagdish.K
Kochi
From India, Kochi
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Please go through the attachments for your guidance on the subject. I hope most of your queries are answered, which have been discussed earlier in the forum. Search and go through.
Regards,
Kumar S.
From India, Bangalore
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Regards,
Kumar S.
From India, Bangalore
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You have left many gaps in information while seeking an answer to your query. The following are gaps in information:
1. If you want to suspend an employee pending an inquiry/investigation, you need to be vested with such power either by standing orders, service rules, settlements/awards, or contract of service. You have not clarified whether you have such enabling provision under which you exercised the power of suspension.
2. When you suspend a workman/employee, you do not pay him a salary but pay him a subsistence allowance at the rates fixed by your standing order/service rules/settlements/contract of service. You have not specified whether the employee is a workman or non-workman.
3. You have not specified whether you have suspended him as a punishment and if so, whether it is enumerated under your standing orders/service rules/settlements/contract of service.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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1. If you want to suspend an employee pending an inquiry/investigation, you need to be vested with such power either by standing orders, service rules, settlements/awards, or contract of service. You have not clarified whether you have such enabling provision under which you exercised the power of suspension.
2. When you suspend a workman/employee, you do not pay him a salary but pay him a subsistence allowance at the rates fixed by your standing order/service rules/settlements/contract of service. You have not specified whether the employee is a workman or non-workman.
3. You have not specified whether you have suspended him as a punishment and if so, whether it is enumerated under your standing orders/service rules/settlements/contract of service.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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When an employee is suspended just for a week, it means they are going to rejoin their duties after one week and are entitled to full salary. Typically, an employee is suspended when they have committed some wrongdoing, or there is a suspicion of misconduct, but the management is either unsure or lacks concrete evidence that can stand in a court of law. The standard procedure to investigate the matter without any interference from the individual and to prevent tampering with evidence or documents is to issue a charge sheet and suspend the employee.
If the inquiry is concluded within a week, and no punitive action is taken against the employee, the employer must pay the full salary for that period. However, if the employee is found guilty or accepts the fault, the payment would be as per the terms of the punishment.
In the first three months of suspension, an employee is entitled to 50% of the basic salary and 50% of the Dearness Allowance (DA). Nevertheless, all other benefits that the employee was receiving before the suspension must be provided.
There have been numerous cases in government, including defense forces, public sector, and private sectors, where employees were suspended for extended periods, only to later win their cases in various courts. In such instances, the employers had to pay them their full salaries, along with increments and promotions, even without them working.
Suspension can be a risky and double-edged sword, often causing more harm to the employers than to the employees. Therefore, it is crucial to be cautious. In your case, where an employee is suspended for just a week, they are entitled to their entire salary.
Please let me know if you have any further questions or need clarification.
Thank you.
From India, Delhi
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If the inquiry is concluded within a week, and no punitive action is taken against the employee, the employer must pay the full salary for that period. However, if the employee is found guilty or accepts the fault, the payment would be as per the terms of the punishment.
In the first three months of suspension, an employee is entitled to 50% of the basic salary and 50% of the Dearness Allowance (DA). Nevertheless, all other benefits that the employee was receiving before the suspension must be provided.
There have been numerous cases in government, including defense forces, public sector, and private sectors, where employees were suspended for extended periods, only to later win their cases in various courts. In such instances, the employers had to pay them their full salaries, along with increments and promotions, even without them working.
Suspension can be a risky and double-edged sword, often causing more harm to the employers than to the employees. Therefore, it is crucial to be cautious. In your case, where an employee is suspended for just a week, they are entitled to their entire salary.
Please let me know if you have any further questions or need clarification.
Thank you.
From India, Delhi
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According to my views, suspension is of two types: one when there is an inquiry to be conducted, and the other is when the inquiry is conducted. In the first case, the employee should be given a salary, and in the second case, when he/she is punished, his/her salary can be stopped.
From India, Delhi
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From India, Delhi
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According to the laws in J&K, when any person is punished for a period of 7 days, they can be given a salary after the verification of the reason for their suspension. If they are suspended due to unauthorized absence, they are given a chance to prove the reason for their absence. If they are genuine, then their salary is released; otherwise, their salary will not be drawn.
Types of Suspension
Suspension can be of many types, so it depends on what the reason is. Salary can only be released after proving genuineness; otherwise, the salary can be stopped, and a red entry can be given in the service book.
Thanks and regards,
Sunil Shan
From India, Delhi
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Types of Suspension
Suspension can be of many types, so it depends on what the reason is. Salary can only be released after proving genuineness; otherwise, the salary can be stopped, and a red entry can be given in the service book.
Thanks and regards,
Sunil Shan
From India, Delhi
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This was really a good topic for the postings by so many experienced contributors. Suspension is ipso facto not a punishment. Suspension's main objective is for the fair inquiry proceeding so that witnesses may not be tampered with while deposing their statements. So, suspension is not meant for punishment.
For whatever complaints, charges, or omissions or commissions, if an employee is suspended, then he is entitled to subsistence allowances as per Rule 10A of the Industrial Employment (Standing Orders) Act, 1946. An employee is entitled to 50% of the wages up to the first 90 days pending inquiry proceedings and 75% of the wages as subsistence allowances if the delay in inquiry proceedings beyond 90 days is not attributable to him. In private employment, subsistence allowances cannot be increased more than 75%, but in Government employment under FR/SR rules, he is entitled to 90% of the basic pay + Allowances + HRA if departmental inquiry proceedings are delayed beyond six months due to reasons not attributable to the employee.
Situations After Suspension is Revoked
Now, after suspension is revoked and the employee joins duty after the completion of the inquiry proceedings, three situations arise:
1. The grave misconduct charges are proved under the inquiry, and the employee is either dismissed, removed, compulsorily retired, or a major penalty is levied on the employee under the rules.
2. The misconduct is proved, but the penalty levied upon the employee is minor under the rules of the company or government, and the employee is retained under employment.
3. The misconduct is not proved, and the employee is exonerated of the charges levied upon him.
In (2) and (3) above, subsistence allowances will be paid, and in (1) above, subsistence allowances shall not be paid. This is the statutory position till now.
Thanks to all.
Regards,
Raj Singh Phogat
Advocate
From India, Delhi
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For whatever complaints, charges, or omissions or commissions, if an employee is suspended, then he is entitled to subsistence allowances as per Rule 10A of the Industrial Employment (Standing Orders) Act, 1946. An employee is entitled to 50% of the wages up to the first 90 days pending inquiry proceedings and 75% of the wages as subsistence allowances if the delay in inquiry proceedings beyond 90 days is not attributable to him. In private employment, subsistence allowances cannot be increased more than 75%, but in Government employment under FR/SR rules, he is entitled to 90% of the basic pay + Allowances + HRA if departmental inquiry proceedings are delayed beyond six months due to reasons not attributable to the employee.
Situations After Suspension is Revoked
Now, after suspension is revoked and the employee joins duty after the completion of the inquiry proceedings, three situations arise:
1. The grave misconduct charges are proved under the inquiry, and the employee is either dismissed, removed, compulsorily retired, or a major penalty is levied on the employee under the rules.
2. The misconduct is proved, but the penalty levied upon the employee is minor under the rules of the company or government, and the employee is retained under employment.
3. The misconduct is not proved, and the employee is exonerated of the charges levied upon him.
In (2) and (3) above, subsistence allowances will be paid, and in (1) above, subsistence allowances shall not be paid. This is the statutory position till now.
Thanks to all.
Regards,
Raj Singh Phogat
Advocate
From India, Delhi
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Understanding Suspension and Subsistence Allowances
This was really a good topic for postings by so many experienced contributors. Suspension is ipso facto not a punishment. The main objective of suspension is to ensure a fair inquiry proceeding so that witnesses may not be tampered with while deposing their statements. Thus, suspension is not meant for punishment.
For whatever complaints, charges, omissions, or commissions, if an employee is suspended, they are entitled to subsistence allowances as per Rule 10A of the Industrial Employment (Standing Orders) Act, 1946. An employee is entitled to 50% of the wages for the first 90 days pending enquiry proceedings and 75% of the wages as subsistence allowances if the delay in enquiry proceedings beyond 90 days is not attributable to them. In private employment, subsistence allowances cannot be increased more than 75%, but in Government employment under FR/SR rules, they are entitled to 90% of the basic pay + Allowances + HRA if the departmental enquiry proceedings are delayed beyond six months due to reasons not attributable to the employee.
Post-Suspension Scenarios
After suspension is revoked and the employee joins duty after the completion of the enquiry proceedings, three situations arise:
1. The grave misconduct charges are proved under the enquiry, and the employee is either dismissed, removed, compulsorily retired, or a major penalty is levied on the employee under the rules.
2. The misconduct is proved, but the penalty levied upon the employee is minor under the rules of the company or Government, and the employee is retained under employment.
3. The misconduct is not proved, and the employee is exonerated of the charges levied upon them.
In situations (2) and (3) above, subsistence allowances will be paid, and in situation (1) above, subsistence allowances shall not be paid. This is the statutory position until now.
Thanks to all.
Regards,
Raj Singh Phogat
Advocate
From India, Delhi
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This was really a good topic for postings by so many experienced contributors. Suspension is ipso facto not a punishment. The main objective of suspension is to ensure a fair inquiry proceeding so that witnesses may not be tampered with while deposing their statements. Thus, suspension is not meant for punishment.
For whatever complaints, charges, omissions, or commissions, if an employee is suspended, they are entitled to subsistence allowances as per Rule 10A of the Industrial Employment (Standing Orders) Act, 1946. An employee is entitled to 50% of the wages for the first 90 days pending enquiry proceedings and 75% of the wages as subsistence allowances if the delay in enquiry proceedings beyond 90 days is not attributable to them. In private employment, subsistence allowances cannot be increased more than 75%, but in Government employment under FR/SR rules, they are entitled to 90% of the basic pay + Allowances + HRA if the departmental enquiry proceedings are delayed beyond six months due to reasons not attributable to the employee.
Post-Suspension Scenarios
After suspension is revoked and the employee joins duty after the completion of the enquiry proceedings, three situations arise:
1. The grave misconduct charges are proved under the enquiry, and the employee is either dismissed, removed, compulsorily retired, or a major penalty is levied on the employee under the rules.
2. The misconduct is proved, but the penalty levied upon the employee is minor under the rules of the company or Government, and the employee is retained under employment.
3. The misconduct is not proved, and the employee is exonerated of the charges levied upon them.
In situations (2) and (3) above, subsistence allowances will be paid, and in situation (1) above, subsistence allowances shall not be paid. This is the statutory position until now.
Thanks to all.
Regards,
Raj Singh Phogat
Advocate
From India, Delhi
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Dear sir, If an employee is suspended as a punishment is she/he payable or not as per the labor law or legally, if payable then How much should we pay. Please assist
From India, Pune
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From India, Pune
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