How Should I Handle Salary Calculation for an Employee Suspended Due to Poor Performance?

Dear All,

I need advice from HR professionals. I am working with an IT company that has 40 employees. One of our employees has been suspended for 20 days due to poor performance. His previous record is also not good. He has been with our organization for 7 months, and his total leave record in 7 months is 20 days. When he was on a 15-day leave for his marriage, we provided him special leave with pay.

My question is, as he is suspended from his services, what should I do to calculate his salary for this month? Should I deduct the salary for the suspension days, or should I consider them as working days?

Please advise.

Regards,
Seema

Hi Seema,

You can't add his suspension period as working days. He should only be paid for the number of days he came to the office.

Hi Seema,

Yes, very true. You can't pay him the salary for suspended days.

Amit Seth.

Hello Seema,

As you mentioned, the employee was suspended for 20 days due to his poor performance. If the suspension order was issued as a penalty imposition, then it can be without pay. However, it should be done following the Law of natural justice, i.e., the proper opportunity must be given before imposing any penalty.

In cases where an employee is accused of misconduct, and there is a prima facie case for imposing a major/minor penalty, and it is deemed undesirable for the employee to remain on duty, a written order of suspension may be issued.

During the suspension period, the employee is entitled to a subsistence allowance equal to fifty percent of the wages for the first ninety days (for further details, please refer to the Model Standing Order). If, however, the period of suspension exceeds ninety days, the subsistence allowance shall be seventy-five percent of the aforementioned wages from the 91st day onwards. If the suspension period exceeds 90 days due to the workman, the subsistence allowance shall be twenty-five percent instead of seventy-five percent.

Before proceeding with the above, please review the provisions of the Standing Order/Service Rules of your organization.

Regards,

Anuj