How Should Transport Corporation Approach an Appeal on Subsistence Allowance Issue?

Incident Overview

In Transport Corporation, a driver caused a fatal accident in which 8 persons died and 18 others were injured on 4-11-11. The driver was suspended pending an inquiry, which lasted for six months. During this period, the management did not provide any subsistence allowance to him. The ACL ordered the payment of the allowance, but the management has not complied. In the meantime, the EO submitted his findings, stating that the driver was responsible for the accident. Based on this report, he was dismissed from service with effect from 5-11-11, the day after the accident occurred.

Consideration for Appeal

Now, the management is considering filing an appeal against the ACL's order. The question arises: on what grounds should we base our appeal? Is the retrospective effect the correct approach? Please share your views on this matter at your earliest convenience.

Regards,
S. Elango, Member

Applicability of Payment of Subsistence Allowance Act

An employee under suspension is entitled to a subsistence allowance. Since you asked this question from Erode, I presume that the employee under suspension is from Tamil Nadu. In that case, the Tamil Nadu Payment of Subsistence Allowance Act 1981 is applicable to him. As per the said Act, the employee is entitled to the payment of subsistence allowance at the rate of 50% of wages for the first 90 days, 75% for the next 90 days, and 100% above 180 days. Please read Section 3 of the Act.

In case the allowance is not paid, the employee may approach the ACL, and he is empowered to give an order for the payment of Subsistence Allowance. If the allowance, as ordered by ACL, is not paid, the employee may approach the Government, and the amount may be recovered as per the Revenue Recovery Act. Please read Section 4 of the Act. Though there is a time limit of one year for making an application for the recovery of money from the employer, the delay can be condoned if there is a sufficient cause for a delayed application by the employee.

Please mention under what grounds you denied payment of the subsistence allowance to the employee under suspension. If you want to make an appeal against the order of ACL for the payment of subsistence allowance, under what grounds will you make an appeal?

Punishment Order of Dismissal

If the inquiry is conducted as per the procedure and strictly adhering to the Principle of Natural Justice, the procedure for the award of punishment of dismissal based on the findings of the inquiry report is correct. Whether the dismissal is right, appropriate, or justified can be decided by a competent court only. The domestic inquiry must have proved the charges leveled against the employee and must justify the award of the major punishment of dismissal. However, dismissal from the date of suspension, i.e., 5.11.11, is illegal.

Regards,