Labour Law & Hr Consultant
PRABHAT RANJAN MOHANTY
Hr & Ir
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.
28th March 2018 From India, Salem
29th March 2018 From India, Mumbai
29th March 2018 From India, Mumbai
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.
29th March 2018 From India, Salem
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.
30th March 2018 From India, Mumbai
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.
31st March 2018 From India, Mumbai