Dear friends,

Please go through the attachments for your guidance on the subject. I hope most of your queries are answered, which have been discussed earlier in the forum. Search and go through.

Regards,
Kumar S.

From India, Bangalore
Attached Files (Download Requires Membership)
File Type: doc SC directive on subsistence allowance to suspended staff.doc (102.0 KB, 549 views)

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Mr. Sandip,

You have left many gaps in information while seeking an answer to your query. The following are gaps in information:

1) If you want to suspend an employee pending an inquiry/investigation, you need to be vested with such power either by standing orders, service rules, settlements/awards, or contract of service. You have not clarified whether you have such enabling provision under which you exercised the power of suspension.

2) When you suspend a workman/employee, you do not pay him salary but pay him subsistence allowance at the rates fixed by your standing order/service rules/settlements/contract of service. You have not specified whether the employee is a workman or non-workman.

3) You have not specified whether you have suspended him as a punishment and if so, whether it is enumerated under your standing orders/service rules/settlements/contract of service.

B. Saikumar HR & Labour Law Advisor Mumbai

From India, Mumbai
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Dear Mr. Sandip,

When an employee is suspended just for a week, it means he is going to rejoin the duties after one week and is entitled to full salary. Typically, an employee is suspended when they have committed some wrongdoing, or there is a suspicion of misconduct, but the management is either unsure or lacks concrete evidence that can stand in a court of law. The standard procedure to investigate the matter without any interference from the individual and to prevent tampering with evidence or documents is to issue a charge sheet and suspend the employee.

If the inquiry is concluded within a week, and no punitive action is taken against the employee, the employer must pay the full salary for that period. However, if the employee is found guilty or accepts the fault, the payment would be as per the terms of the punishment.

In the first three months of suspension, an employee is entitled to 50% of the basic salary and 50% of the Dearness Allowance (DA). Nevertheless, all other benefits that the employee was receiving before the suspension must be provided.

There have been numerous cases in government, including defense forces, public sector, and private sectors, where employees were suspended for extended periods, only to later win their cases in various courts. In such instances, the employers had to pay them their full salaries, along with increments and promotions, even without them working.

Suspension can be a risky and double-edged sword, often causing more harm to the employers than to the employees. Therefore, it is crucial to be cautious. In your case, where an employee is suspended for just a week, they are entitled to their entire salary.

Please let me know if you have any further questions or need clarification.

Thank you.

From India, Delhi
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Sir,

According to my views, suspension is of two types: one when there is an inquiry to be conducted, and the other is when the inquiry is conducted. In the first case, he should be given salary, and in the second case, when he/she is punished, his/her salary can be stopped.

From India, Delhi
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Sir,

According to laws in J&K, when any person is punished for a period of 7 days, he can be given salary after the verification of the reason for his suspension. Just if he is suspended due to unauthorized absence, then he/she is given a chance to prove his reason for absence. If he is genuine, then his salary is released; otherwise, his salary will not be drawn. Suspension can be of many types, so it depends on what the reason is, and salary can only be released after proving his genuineness; otherwise, salary can be stopped, and a red entry can be given in his service book.

Thanks and regards,
Sunil Shan

From India, Delhi
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Dear All,

This was really a good topic for the postings by so many experienced contributors. Suspension is ipso facto not a punishment. Suspension's main objective is for the fair inquiry proceeding so that witnesses may not be tampered with while deposing their statements. So, suspension is not meant for punishment.

For whatever complaints, charges, or omissions or commissions, if an employee is suspended, then he is entitled to subsistence allowances as per Rule 10A of the Industrial Employment (Standing Orders) Act, 1946. An employee is entitled to 50% of the wages up to the first 90 days pending inquiry proceedings and 75% of the wages as subsistence allowances if the delay in inquiry proceedings beyond 90 days is not attributable to him. In private employment, subsistence allowances cannot be increased more than 75%, but in Government employment under FR/SR rules, he is entitled to 90% of the basic pay + Allowances + HRA if departmental inquiry proceedings are delayed beyond six months due to reasons not attributable to the employee.

Now, after suspension is revoked and the employee joins duty after the completion of the inquiry proceedings, three situations arise:-

1. The grave misconduct charges are proved under the inquiry, and the employee is either dismissed, removed, compulsorily retired, or a major penalty is levied on the employee under the rules.

2. The misconduct is proved, but the penalty levied upon the employee is minor under the rules of the company or government, and the employee is retained under employment.

3. The misconduct is not proved, and the employee is exonerated of the charges levied upon him.

In (2) and (3) above, subsistence allowances will be paid, and in (1) above, subsistence allowances shall not be paid. This is the statutory position till now.

Thanks to all.

Raj Singh Phogat
Advocate

From India, Delhi
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Dear All,

This was really a good topic for the postings by so many experienced contributors. Suspension is ipso facto not a punishment. The main objective of suspension is for the fair inquiry proceeding so that witnesses may not be tampered with while deposing their statements. Thus, suspension is not meant for punishment.

For whatever complaints, charges, omissions, or commissions, if an employee is suspended, then they are entitled to subsistence allowances as per Rule 10A of the Industrial Employment (Standing Orders) Act, 1946. An employee is entitled to 50% of the wages up to the first 90 days pending enquiry proceedings and 75% of the wages as subsistence allowances if the delay in enquiry proceedings beyond 90 days is not attributable to them. In private employment, subsistence allowances cannot be increased more than 75%, but in Government employment under FR/SR rules, they are entitled to 90% of the basic pay + Allowances + HRA if the departmental enquiry proceedings are delayed beyond six months due to reasons not attributable to the employee.

After suspension is revoked and the employee joins duty after the completion of the enquiry proceedings, three situations arise:

1. The grave misconduct charges are proved under the enquiry, and the employee is either dismissed, removed, compulsorily retired, or a major penalty is levied on the employee under the rules.

2. The misconduct is proved, but the penalty levied upon the employee is minor under the rules of the company or Government, and the employee is retained under employment.

3. The misconduct is not proved, and the employee is exonerated of the charges levied upon them.

In situations (2) and (3) above, subsistence allowances will be paid, and in situation (1) above, subsistence allowances shall not be paid. This is the statutory position until now.

Thanks to all.

Raj Singh Phogat

Advocate

From India, Delhi
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Mr Sasikumar is correct.For more clarification Mr sandeep pl call me. Varghese Mathew 9961266966
From India, Thiruvananthapuram
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Dear sir, If an employee is suspended as a punishment is she/he payable or not as per the labor law or legally, if payable then How much should we pay. Please assist
From India, Pune
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If an employee is suspended for misbehaviour or misconduct should she/he be paid or not, if yes then how much.
From India, Pune
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