Legal Tip of the Day
Once an employer suspends an employee, subsistence allowance will be payable
Subsistence allowance forms the terms of employment and close as not contingent on actual work but during pendency of enquiry even through the worker is not working, he gets the allowance. Subsistence allowance is , in fact, nick name for " reduced wages or reduced salary".
Consequently, the subsistence allowance is part of wages under clause (vi) of Section 2 of the Payment of Wages Act. It does not amount to deduction of wages hence the claim for deduction of wages would not be maintainable under Section 15 of the Payment of Wages Act.
When an employee is suspended , his contract of service is not rescinded and the relationship of employer and employee subsists. The Suspension of an employee merely prohibits an employer from giving any work to the employee during the disciplinary proceedings.
RegardsDeepak Miglani Advocate
President Legal Point Foundation
For any query:-
Phone No:- 9958086337(Delhi) 09215514435(Haryana)
From India, Coimbatore
733Once an employer suspends an employee, subsistence allowance will be payable
Subsistence allowance forms the terms of employment and close as not contingent on actual work but during pendency of enquiry even through the worker is not working, he gets the allowance. Subsistence allowance is , in fact, nick name for " reduced wages or reduced salary".
Consequently, the subsistence allowance is part of wages under clause (vi) of Section 2 of the Payment of Wages Act. It does not amount to deduction of wages hence the claim for deduction of wages would not be maintainable under Section 15 of the Payment of Wages Act.
When an employee is suspended , his contract of service is not rescinded and the relationship of employer and employee subsists. The Suspension of an employee merely prohibits an employer from giving any work to the employee during the disciplinary proceedings.
RegardsDeepak Miglani Advocate
President Legal Point Foundation
For any query:-
Phone No:- 9958086337(Delhi) 09215514435(Haryana)
From India, Coimbatore
sir, what is the % of wages has to be pay on suspension period and what about statutory deductions like esi,epf and pt. pls suggest.
From India, Bangalore
From India, Bangalore
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