How to Handle Subsistence Allowance After Employee Suspension and Guilty Verdict?

Dear Friends,

Can you kindly help me in addressing the following query:

1. An employee is under suspension, and during this period, we have paid a subsistence allowance to him. After the inquiry, we found that the employee is guilty and suspended. Could you kindly guide on how to settle his amount? Do we need to make the balance payment of the subsistence allowance to him?

Please guide me.

Regards,
Raghu

After the enquiry, what is the need for suspending the employee again? If the employee is found guilty, you can discharge or dismiss him from service. If it is a discharge, you can pay him final settlement which includes any gratuity payable, leave salary, and salary remaining unpaid till he actually worked, etc.

Subsistence allowance is payable only for the period of suspension.

Regards,
Madhu.T.K

Hi Madhu,

Thank you for your response. I apologize for using the word "suspension" a second time. After the inquiry, we have decided to dismiss the employee. In the case of dismissal, do we need to pay the remaining salary for the period of suspension, considering we have only paid 50% of the subsistence allowance?

Could you please help me understand this better?

Regards

In case of dismissal from service, you need not pay anymore since you have already paid subsistence pay.

Regards,
Madhu.T.K

Hi Friends, my query is - suppose the workman is suspended pending inquiry. The inquiry proceedings continued for 20 days, and he was found guilty after the inquiry. As per the Standing Orders of the company, he was punished with suspension for 2 days. Then, will he be paid full salary for 18 days, i.e., 20-2 days, or else?

Regards,
Sunil Singh

Dear,

If in an inquiry all charges made against him are proved, and you want to terminate his services, you are required to send him a second show cause with proposed punishment. After that, you will send a letter of termination, and he is entitled to a subsistence allowance until his services are terminated.

I understand that the suspended employee's disciplinary proceedings are over, and he has been awarded a punishment of punitive suspension. Your question is how to treat the period of suspension and whether the balance of subsistence allowance should be paid, correct?

Treatment of Suspension Period

If the period of suspension undergone is treated as punishment (normally limited to 30 days only), the suspension period beyond 30 days should be considered as duty. Full wages minus the proportionate subsistence allowance already paid should be given.

Regards.