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Suspension and Allowances of a PSU Employee

A PSU employee was suspended and was also paid substantial allowances during his suspension period. He was reinstated after two months at a different location and was issued a major charge sheet. Upon reinstatement, he received allowances based on the previous pay scale, not the current one.

Clause on Allowances During Departmental Proceedings

In the IOM of the current scale pay's allowances, there is a clause stating that this pay scale (only allowances) should not be paid to employees who are facing departmental proceedings. The same clause is mentioned in the PRP's IOM as well. It is also noted that the said allowance and PRP will be decided after the proceedings' judgment.

Outcome of Proceedings and Allowance Query

After the proceedings, the employee received a minor penalty of "censure," and nothing is mentioned about allowances, PRP, etc. Can the said employee receive his balance amount of substantial pay and allowances, as PRP was not released during the period of the proceedings?


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Based on the information provided, the situation involves the payment of allowances to a PSU employee who was suspended, reinstated, and faced departmental proceedings resulting in a minor penalty. Here are the key points to consider:

Legal Consideration
- The employee's entitlement to the balance amount of substantial pay and allowances post-reinstatement is subject to the specific policies, guidelines, and clauses outlined in the PSU's IOM and PRP documents.
- It is crucial to refer to the exact clauses and provisions within the organization's policies regarding the payment of allowances during suspension and post-proceedings.

Practical Approach
1. Review the PSU's Internal Orders Manual (IOM) and Performance Related Pay (PRP) guidelines to understand the specific conditions under which allowances are paid during suspension and post-proceedings.
2. Check if there are clear provisions on the payment of allowances in cases where employees face departmental proceedings and the subsequent outcomes.
3. If the IOM and PRP documents explicitly state that allowances will be decided post-proceedings' judgment, and no mention is made after the minor penalty of "censure," the employee may not be entitled to the balance amount of substantial pay and allowances.
4. Consult with the HR department or relevant authorities within the PSU to seek clarification on the specific situation and the employee's entitlement to the outstanding pay and allowances.
5. Document all communications and decisions regarding the payment of allowances to ensure transparency and compliance with the organization's policies.

Conclusion
- It is essential to adhere to the established policies and guidelines of the PSU regarding the payment of allowances to employees under different circumstances.
- Clarification from the HR department or higher authorities within the organization is recommended to address any ambiguity and provide a clear resolution to the employee's query.

From India, Gurugram
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