Subsistence Allowance.....50% - Doc Download

Dear Prashant ji,
I suggest to issue appointment letter as per attached draft which is in KISS formula. Always adopt KISS.... any where, any time.
Thanks with regards.
Keshav Korgaonkar

Dear friends,

I observed many friends in HR tried to :

1. Include a clause in the appointment Order "as during the probation...can be terminated without notice, without assigning any reason whatsoover"..

2. "Probation period can be extended at the discretion of the management"

3."Duties and responsibilities, terms & conditions of your apptt. etc. will be issued to you in due course" and so on.

It is my humble opinion these kind of one sided terms does not stand to the scrutiny of law and would fail at rendering natural justice.

Moreover when the terms and conditions are framed it is always desirable to list out almost all possible & applicable terms & conditions of apptt., and attach them to the offer stage itself, if possible, mention clearly under what circumstances the probation could be extended and upto what period. We should not leave to the extent possible, every terms unambiguous. Clearly defined every terms and conditions would avoid any nuances arising in the administration of HR functions.

Also the communications should be in writing, duly acknowledged and accepted by the employee concerned.

And importantly the terms, rules & regulations should invariably consistent with the law of the land and none should ultra-vires any act or legislation applicable.

Similarly when HR is forced to take any disciplinary action against any employee at whatever may the levels it shall be taken up only thro' the Domestic Inquiry route without fail. For whatsoever may be the reason short circuiting the procedures would result in litigations going against the employer.

kumar.s.

Dears,
Can we pay the increment during the suspension period
Regards/Sridharrajan

Dear Sridhar, While an Employee is under "Suspension" he is eligible for "Subsistence Allowance" in what context, you are proposing to pay Increment.Please elaborate your proposal

During the suspension period the employer employee relationship remains and in the absence of any express order saying that the employee placed under suspension pending enquiry is not entitled to any increment, he should be paid increment due and the subsistence allowance should be paid based on the increased salary. Obviously, subsistence allowance is a percentage (50%, 75% or 100%, as the case may be) of his pay and once his pay is increased by the element of increment given, the subsistence pay will also increase.
No doubt, if your increments are purely based on performance, you need not pay it. But if the employee is under a time scale with annual increments marked against each grade, he should be paid the increment.
In support of the above there are a lot of court cases available. One case is attached for your reference.

Whether to deduct epf ,esic and labour welfare from 50 % of subsistence allowance processed?

Subsistence allowance is an allowance paid to worker for his survival and during the suspension period the worker is not on duty. Therefore, it will not come under the definition of wages under the EPF& MPAct and no PF to be deducted from the amount so paid. At the same time, since the employee is an insured person even though he is under suspension, the amount paid for his survival, ie, the subsistence allowance, will attract ESI contribution.