How Should Management Handle Suspension Allowance for a Protected Worker Awaiting Court Approval?

Greetings: A protected workman is found guilty after a domestic inquiry, and management wants to dismiss him. Pending approval of the Labour Court, before which the proceedings were pending, he has been suspended. Please suggest the following:

1) At what rate will his suspension allowance be calculated?

2) If the Labour Court denies permission, and management files an appeal before the High Court, what compensation is he entitled to during the pendency of the appeal as management does not want him to be allowed in the plant?

Experts, please suggest.

Regards,

Hi, Please note that a protected workman has immunity against dismissal only during adjudication or conciliation proceedings, not at all times. The suspension amount calculation should be in accordance with the standing order.

Suspension Pending Enquiry

If suspension pending enquiry is as per the approval of the Conciliation Officer/Labour Court, then the same can be continued until permission to dismiss is received. During suspension, the employee should be paid a subsistence allowance as per the State Act concerning the payment of subsistence allowance. In the absence of a separate Act, you can pay 50% of the salary for the first 90 days and then increase it to 75% for the rest of the period. In states like Kerala, there is a provision for 100% pay for the period beyond 180 days.

Termination and Compensation During Appeal

The management can terminate the employee if the domestic inquiry is completed and finds the individual guilty of misconduct. However, at present, your management cannot take any action because they have taken the wrong route by filing the case in the High Court. The court will not allow termination either. You will need to pay 50% of the salary for the first 90 days and then 75% for the remaining period. Please check your state rules for the payment of sustenance allowance.