Is Subsistence Allowance Necessary for All Employees Under Suspension? Let's Discuss

Dear all,

Is subsistence allowance needed for all types of employees, whether permanent, trainee, learner, etc., who are suspended pending inquiry? Kindly respond.

As per the Industrial Disputes Act, all workmen who are suspended pending an inquiry are eligible for subsistence allowance.

"Workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical, or supervisory work for hire or reward, whether the terms of employment are express or implied. For the purposes of any proceeding under this Act in relation to an industrial dispute, it includes any such person who has been dismissed, discharged, or retrenched in connection with or as a consequence of that dispute, or whose dismissal, discharge, or retrenchment has led to that dispute. However, it does not include any such person who:

(i) is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957);
(ii) is employed in the police service or as an officer or other employee of a prison;
(iii) is employed mainly in a managerial or administrative capacity; or
(iv) being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

Hi,

Can you tell me if an employee is suspended for 4 days, whether the company is liable to pay subsistence allowance to him, or if the company can deduct his wages under the NO WORK NO WAGES policy? The employee has given in writing that he is guilty of his misconduct and there are no enquiry proceedings.

Please explain.

Raj

Dear Sir,

A subsistence allowance will be paid during the pending enquiry, regardless of the type of worker involved.

Thank you,
J. S. Malik

Dear Raj,

On what basis have you suspended me for 4 days? Does your standing orders permit you to suspend for 4 days? Once you have suspended me for four days after I accepted the charges, then do not pay me salary. However, your suspension is not illegal.

Thanks,
J. S. Malik

Subsistence allowance is paid to an employee when he is suspended pending enquiry. 50% of Basic, DA, and other allowances for the first 90 days. 75% after 90 days, if the reason for the delay is attributed to the workmen, then 25%. Suspension is always a punishment and can be done only after a proper enquiry is conducted. Any suspension without conducting a domestic enquiry would be illegal. Therefore, there is no question of subsistence allowance in this case.