Labour Law & Hr Consultant
Management Consultancy
Nagarkar Vinayak L
+1 Other

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Hi please tel me suspended employee any chance to get remaining subsistence allowance after the completion of inquiry
From India, Gurgaon
Dear Nandisha,
Subsistence Allowance, whether payable as per the provisions of the Standing Orders or the Service Regulations applicable to a suspended employee, is an allowance payable during the entire period of suspension in lieu of his normal wages/salary in order to defend his case effectively. It is the discretion of the employer to revoke suspension of the delinquent employee as soon as the completion of the enquiry or keep him under suspension till final orders are passed in the disciplinary proceedings. Of course, subsistence allowance should be paid by the employer for the entire period of suspension at the specified rates on the normal dates of salary disbursement even it results in dismissal of the employee.

From India, Salem
The principle is that in case disciplinary action is ending in acquittal of the employee of the charges against him, then the suspension period is treated as on duty for all purposes and the suspended employee is entitled to the remaining amount of wages and allowances after subsistence allowance is deducted. However if the disciplinary action ends in punishment, then the suspended employee is not entitled to anything other than the subsistence allowance already paid. This is subject to the specific Standng Order provision applicable.
From India, Mumbai
sir actually this case is long absenteeism case we are contacted inquiry after that he is resigned employment before we gave the 50% subsistence allowance my query is after resigning we will pay remaining subsistence allowance or not ?
From India, Gurgaon
It lacks clarity, basically, was he suspended? Subsistence Allowance is paid to a suspended employee, if he is not suspended he is not required to be paid subsistence allowance. If after enquiry, the employee has resigned, have you accepted his resignation? Pl clarify the position.
From India, Mumbai
Dear Nandisha,
In the first place, I don't understand the logic behind placing an employee who has long been absent merely for the purpose of initiating DP against him for the misconduct of unauthorised absence. Suspension pending enquiry is an effective weapon in the hands of the employer to prevent the employee from meddling with the DP by way of tampering documentary evidence as well as influencing the witnesses by any means like threat, cajolery etc. At times some delinquent employees may resort to playing smarter by dragging the enquiry unnecessarily taking advantage of their suspension. Therefore, suspension pending enquiry should be sparingly used only to expedite the D.P and not as an empty formality or show of power. Once the employer exercises the option whether knowingly or unknowingly, he has to diligently comply with the provision for payment of subsistence allowance both time-wise and scale-wise. Any lapse in this regard can vitiate the entire D.P in case of judicial scrutiny later. Therefore not withstanding his subsequent resignation, you have to pay him subsistence allowance till his last date of service in the organization.
Normally, no prudent employer would accept the resignation submitted by a delinquent employee when the DP is in progress or final orders are pending. What I infer is that being satisfied with the voluntary exit of the unwanted employee, the employer has accepted his resignation despite the pending D.P and hence closed it without any further action. Even then, I am of the opinion that you have to pay him the balance amount of subsistence allowance.

From India, Salem
Dear colleague,
What can be made out from your posts is that you placed under suspension your employee against whom enquiry for absenteeism was being conducted. After the completion of enquiry and before awarding punishment or otherwise, he resigned which you seem to have accepted.
In this situation, presumably you must have paid subsistence allowance from the date of suspension till his date of release upon resignation. Then which remaining period you are talking about?
I don't believe you need to pay subsistence allowance after his last date of employment.
Vinayak Nagarkar

From India, Mumbai
Dear Nandisha,
As per you posting, clarification and discussion in forum gave me an understanding that the employee was paid only 50% of subsistence allowance out of total dues.
The employee put his resignation which evenly accepted by the management. You need to settle his account by paying the balance amount which remained due. The amount of subsistence allowance to be calculated from the date he was put on suspension till date of his resignation.

From India, Mumbai
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