Legal Insight: Is There an Act Covering Transport Allowance During Suspension Inquiries?

Prashant A Jadhav
Under which act is conveyance allowance/transport allowance paid for attending suspension pending inquiry outside factory premises?
Babu Alexander
Conveyance Allowance or Transport Allowance

Conveyance allowance or transport allowance is payable in certain circumstances, purely at the discretion of the Enquiry Officer, considering the distance the workman has to travel from his residence to the place of enquiry. It is based on the "principle of natural justice," ensuring that the delinquent employee is given all possible and reasonable opportunities and help to attend the enquiry proceedings to defend his case. This may not be extended to the witnesses in support of the workman, as it is the responsibility of the delinquent workman to produce his witnesses.
KK!HR
During the period of suspension, a suspended employee is entitled to a subsistence allowance as per the Industrial Employment Standing Orders Act 1947 and the Model Standing Orders framed thereunder. This entails being initially paid 50% of the wages for the first 90 days (Section 10A), with a later revision to 75%/25% depending on whether the suspended employee is responsible for the delay in the proceedings or not. The payment of conveyance or transport allowance is contingent on the definition of wages applicable to your establishment.

Conveyance Allowance vs. Transport Allowance

Generally, conveyance allowance is a fixed sum of money provided to an employee for using their personal vehicle for official duties. Transport allowance, usually a lesser amount, is given to those using public transport or non-motorized personal vehicles (such as a cycle). A suspended employee, being restricted from discharging duties, would not be entitled to conveyance allowance. However, they can receive transport allowance as required to attend the domestic enquiry and upon certification by the Enquiry Officer, as correctly advised by Babu Alexander Sir. If an outstation trip is necessary, the suspended employee is entitled to traveling allowance and DA as applicable to their substantive post.
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Entitlement to Allowances During Disciplinary Proceedings

As far as the disciplinary proceedings against government servants are concerned, the delinquent employee, even if under suspension, is entitled to Travelling Allowance (TA) and Daily Allowance (DA) at the rates prescribed for his grade. Retired employees are also eligible on the basis of the pay last drawn.

Defence witnesses, even private persons, are entitled to TA and DA.
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