An employee working in a private educational institute and drawing wage of Rs.1 Lac above per month was suspended for misappropriation of funds. My doubt is whether he is entitled for subsistence allowance. Is there any wage limit for applicability of the provision for payment of subsistence allowance to a suspended employee.
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Suspension of an employee is an act of the employer debarring him from attending his duties by keeping the contract of employment under suspended animation only either as a measure of punishment against certain proven misconduct or in contemplation of any disciplinary action against the employee regarding some serious or grave misconduct and not its termination. In the absence of any such provision in the contract of employment or the Service Regulations, if the employer places an employee under suspension pending any disciplinary action, he can do so subject to payment of full salary for the entire period of suspension.
Since the post alleges a grave misconduct of embezzlement of funds against an employee with a monthly salary of Rs. One lakh, certainly he would be in managerial cadre. Therefore, payment of subsistence allowance is a matter strictly subject to his contract of employment or service regulations if any, applicable to his cadre.
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