Applicability Of Subsistence Allowance For Managerial Cadre

Dear all
There is a clear cut guidelines about payment of subsistence allowance to workmen who are serving suspension. Kindly let me know the laws that are applicable when it comes to suspension of a person who is holding managerial position. Is he entitled for subsistence allowance.
regards
S.Raghuram

There is no such law like Standing Orders Act governing employees in managerial positions.Their service conditions like salary, probation,confirmation,suspension or termination are governed by the Service Rules of the organisation in which they are employed or by the terms of contarct of service like a letter of appointment. For example, officers in public sector banks are governed by the officers' conduct and discipline rules.Therefore you need to look for specific rules/terms of contract of service applicable to the manager in question which shall specify the quantum of subsistence allowance payable to a suspended manger/officer.
B.Saikumar
HR & Labour Relations Advisor

Dear Mr. Raghuram
Which rules/laws you are applying for suspending an employee of managerial level must contains the provisions of suspension/subsistence allowance. This allowance is given to an employee for livelihood for him and his family and to defend himself for suspension and domestic enquiry. Please note that enquiry stands vitiated if subsistence allowance is not paid regularly till the decision of suspension/enquiry. And all your exercise on suspension/ domestic enquiry will become futile.
Thanks
V K Gupta

Dear all
Thanks for your valuable comments. I was forced to think on this line due to the fact that the The Karnataka payment of Subsistence allowance act, 1988 clearly keeps out the persons on managerial positions from its ambit. I have attached the act for ready reference of users.
regards
S.Raghuram

Dear Mr. Raghuram,
After going through this Act, my views are as under:
1. This Act is mainly to substitute for Payment of Subsistence Allowance in those establishments which either have no provision in their Certified Standing Orders or Model Standing Orders are not applicable. This is as per ID Act and as such it is applicable to workman (employee as defined under the Act).
2. This Act does not debar you from payment to Managerial level staff. However this Act empowers workers to claim Subsistence Allowance.
3. To my experience, subsistence allowance is not claim but is obligation on the part of employer.
4. If I accept your contentions, then this would be a novel method to send a manager out. Place him under suspension and forget & left him & his family to ...............
Any undue encroachment is regretted.
Thanks
V K Gupta

The karnataka Act on subsistence allowance clearly keeps the employees in managerial position outside the purview of the said Act.I understand that there is a similar legislation in Tamil Nadu also.Even if the contract of service is silent on suspension and substance allowance and the employer suspends the manager, in my view, he has to pay him subsistence allowance for the period of suspension as per the principles of natural justice.
B.Saikumar
HR & Labour law Consultant