Dear HR Team leaders,
What is the difference between suspension pending inquiry and punitive suspension? Also, for a suspended worker, is subsistence allowance required to be paid or not during the suspension period?
Thank you.
From India, New Delhi
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450What is the difference between suspension pending inquiry and punitive suspension? Also, for a suspended worker, is subsistence allowance required to be paid or not during the suspension period?
Thank you.
From India, New Delhi
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Dear Kumar,
In the realm of employment, the term 'suspension' refers to the state of an employee being kept away temporarily from discharging his duties by the employer under the contract of employment while the same remains intact. Suspension can be ordered by the employer when certain charges of grave misconduct are contemplated against the employee and/or a domestic enquiry is to be conducted into the charges already framed as a pre-emptive measure of disabling the delinquent to tamper with the records or influencing the witnesses, if any, with his official position. This is called "suspension pending enquiry".
Suspension can also be awarded as a punishment on the conclusion of the disciplinary proceedings. This is called "Punitive Suspension".
Subsistence allowance is the sum paid during the entire period of suspension pending enquiry as the employee is deprived of his normal salary due to the suspension. The rate of subsistence allowance is calculated as a percentage of his salary drawn immediately before his suspension and also varies according to the duration of suspension. The rate is fixed under the Standing Orders or any other special law in force for the purpose. Normally, it is 50% of the last drawn salary during the first 90 days of suspension, 75% during the next 90 days, and beyond 180 days, it can be 100%. The objective is two-fold. The first one is to enable the employee to participate in the disciplinary proceedings despite the loss of his earnings due to suspension, and the second is to indirectly compel the employer to dispose of the disciplinary action expeditiously. No deductions other than contribution to ESI shall be made from the subsistence allowance, which shall be paid monthly on the normal date of disbursement of salary. It can be reduced if there is any delay in the disciplinary proceedings attributable to the suspended employee, or it can be denied if he is found to be gainfully employed elsewhere. Thus, the payment of subsistence allowance is an inseparable part of the entire exercise of the process of suspension pending enquiry, and any default or deviation by the employer in this regard would vitiate the entire disciplinary proceedings.
It is to be noted that suspension pending enquiry is not a punishment. Therefore, on the disposal of the disciplinary proceedings with any punishment other than dismissal, the period of suspension undergone shall be regularized, and salary minus the subsistence allowance received shall be paid to the employee. Otherwise, it will amount to double punishment. It would not be out of context to mention here that in the absence of a provision for suspension pending enquiry in the contract of employment or the service regulations, still, the employer can place a delinquent employee under suspension pending enquiry subject to the condition that he shall be paid his normal wages as subsistence allowance.
Punitive Suspension, on the contrary, is a punishment as the very name suggests and has an indelible stigma attached to it, thereby depriving the employee of the salary for the period of suspension, break in continuity of service for the purpose of periodical increments, terminal benefits, etc. Punitive Suspension can be awarded only for the maximum number of days prescribed in the Standing Orders or service regulations, and it is 30 days, if I remember correctly. At times, the number of days spent on suspension pending enquiry can also be ordered by the disciplinary authority in the end to be treated as Punitive Suspension; but the subsistence allowance already paid cannot be recovered.
Therefore, suspension of the services of an employee pending enquiry or as a measure of punishment is an important step in the disciplinary process. Keeping the delinquent employee under prolonged suspension without or belated enquiry just because he has been paid subsistence allowance, placing an employee on suspension on the very date of his superannuation on flimsy charges, etc., have been regarded as unfair practices on the part of the employer by the higher judiciary in a number of cases. It shall be handled by the employer with utmost care and discretion failing which it can have a boomeranging effect in Judicial review.
From India, Salem
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In the realm of employment, the term 'suspension' refers to the state of an employee being kept away temporarily from discharging his duties by the employer under the contract of employment while the same remains intact. Suspension can be ordered by the employer when certain charges of grave misconduct are contemplated against the employee and/or a domestic enquiry is to be conducted into the charges already framed as a pre-emptive measure of disabling the delinquent to tamper with the records or influencing the witnesses, if any, with his official position. This is called "suspension pending enquiry".
Suspension can also be awarded as a punishment on the conclusion of the disciplinary proceedings. This is called "Punitive Suspension".
Subsistence allowance is the sum paid during the entire period of suspension pending enquiry as the employee is deprived of his normal salary due to the suspension. The rate of subsistence allowance is calculated as a percentage of his salary drawn immediately before his suspension and also varies according to the duration of suspension. The rate is fixed under the Standing Orders or any other special law in force for the purpose. Normally, it is 50% of the last drawn salary during the first 90 days of suspension, 75% during the next 90 days, and beyond 180 days, it can be 100%. The objective is two-fold. The first one is to enable the employee to participate in the disciplinary proceedings despite the loss of his earnings due to suspension, and the second is to indirectly compel the employer to dispose of the disciplinary action expeditiously. No deductions other than contribution to ESI shall be made from the subsistence allowance, which shall be paid monthly on the normal date of disbursement of salary. It can be reduced if there is any delay in the disciplinary proceedings attributable to the suspended employee, or it can be denied if he is found to be gainfully employed elsewhere. Thus, the payment of subsistence allowance is an inseparable part of the entire exercise of the process of suspension pending enquiry, and any default or deviation by the employer in this regard would vitiate the entire disciplinary proceedings.
It is to be noted that suspension pending enquiry is not a punishment. Therefore, on the disposal of the disciplinary proceedings with any punishment other than dismissal, the period of suspension undergone shall be regularized, and salary minus the subsistence allowance received shall be paid to the employee. Otherwise, it will amount to double punishment. It would not be out of context to mention here that in the absence of a provision for suspension pending enquiry in the contract of employment or the service regulations, still, the employer can place a delinquent employee under suspension pending enquiry subject to the condition that he shall be paid his normal wages as subsistence allowance.
Punitive Suspension, on the contrary, is a punishment as the very name suggests and has an indelible stigma attached to it, thereby depriving the employee of the salary for the period of suspension, break in continuity of service for the purpose of periodical increments, terminal benefits, etc. Punitive Suspension can be awarded only for the maximum number of days prescribed in the Standing Orders or service regulations, and it is 30 days, if I remember correctly. At times, the number of days spent on suspension pending enquiry can also be ordered by the disciplinary authority in the end to be treated as Punitive Suspension; but the subsistence allowance already paid cannot be recovered.
Therefore, suspension of the services of an employee pending enquiry or as a measure of punishment is an important step in the disciplinary process. Keeping the delinquent employee under prolonged suspension without or belated enquiry just because he has been paid subsistence allowance, placing an employee on suspension on the very date of his superannuation on flimsy charges, etc., have been regarded as unfair practices on the part of the employer by the higher judiciary in a number of cases. It shall be handled by the employer with utmost care and discretion failing which it can have a boomeranging effect in Judicial review.
From India, Salem
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Dear HR Leaders Thanks for your erudite and knowledgeable replies which are useful for my understanding.
From India, New Delhi
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From India, New Delhi
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Dear colleague,
I think under the Model Standing Orders, the period of maximum suspension by way of punishment prescribed is four days.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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I think under the Model Standing Orders, the period of maximum suspension by way of punishment prescribed is four days.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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