Labour Law & Hr Consultant
Nagarkar Vinayak L
Hr And Employee Relations Consultant
+1 Other

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One employee was arrested by CBI . Subsequently he was suspended and an enquiry had conducted. After enquiry , he has dismissed from the service during suspension period. Now he claims subsistence allowance for the period from arresting to date of dismissal. Can subsistence allowance will be paid or not.
Non-payment of subsistence allowance to the suspended employee would vitiate the inquiry conducted during the period of his/her suspension. Therefore, the employer should pay him subsistence allowance even after his dismissal.
Dear Colleague,
Undoubtedly, he is entitled to subsistence allowance from the date of suspension till the date of termination. But clarify the period of suspension and if it was more than one month, why was he not paid the same to him.
Vinayak Nagarkar
Vinayak Nagarkar
HR- Consultant

First confirm whether his terms of employment or applicable standing order or State’s Subsistence Allowance Act if any entitle him for subsistence allowance. Varghese Mathew
In the absence of all the three mentioned by Mr.Varghese, the suspended employee is entitled to full wages for the entire period of suspension.
The employee is entitiled for subsistence allowance during the suspended period till the period of termination. The employee to be paid from the date of suspension not from the date of his arrest.
Further, you check with your standing orders dictum and act accordingly.

Subsistence allowance is payable from the date of suspension till the date of dismissal of the employee from the services of the company as per the provisions of Industrial Employment(Standing Orders )Act and as per the provisions of Model Standing Orders, if you donot have your own Standing Orders.
R R Kapoor

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