Very good information provided on subsistence allowance. Subsistence allowance is only survival benefit so that unless and until the final decision comes he should not come on roads. It is principle of Natural Justice.
It is not considered as salary so no allowances will be paid and no PF & ESI will be deducted.
For 1st 90 days 50% of salary after 90 days 90% of salary and after 180 days of no decision 100% of salary will be paid.
So it is we can calculate the subsistence allowance on 50% of Basic + DA.
Procedure for disciplinary action
1) Written complaint from the complaintant
2)On the basis of written complaint 1st show cause notice is issued to the accused where explanation is demanded with 3 days of time after receiving the show cause notice ( Principle of Natural justice)
3)After taking the written complaint is management finds the explanation satisfactory than warning notice is given as to not to repeat the same in future.
4)If Management doesnot finds the explanation satisfactory than charge sheet is issued to the accused wheir the day , date & time of domestic inquiry is written.
5)Meanwhile an enquiry officer and Management representative are appointed
6)Domestic enquiry continues and Enquiry officer will present his report.
7)On the basis of enquiry officer reporty 2nd show cause notice is send to the accused which states that his charges are proved and why management should not terminate his services explanation is demanded ( Principle of Natural justice)
8) After receiving the explantion the decision of management matter whether to discharge the services / suspension / degrade / stopping his increment / take him back on services.
If their is any addition / edition in above procedure than your comments are welcome.
If any one want any other information they can call me on 9909001742.
Regards
Abhijeet Sawant
From India, Ahmadabad
8It is not considered as salary so no allowances will be paid and no PF & ESI will be deducted.
For 1st 90 days 50% of salary after 90 days 90% of salary and after 180 days of no decision 100% of salary will be paid.
So it is we can calculate the subsistence allowance on 50% of Basic + DA.
Procedure for disciplinary action
1) Written complaint from the complaintant
2)On the basis of written complaint 1st show cause notice is issued to the accused where explanation is demanded with 3 days of time after receiving the show cause notice ( Principle of Natural justice)
3)After taking the written complaint is management finds the explanation satisfactory than warning notice is given as to not to repeat the same in future.
4)If Management doesnot finds the explanation satisfactory than charge sheet is issued to the accused wheir the day , date & time of domestic inquiry is written.
5)Meanwhile an enquiry officer and Management representative are appointed
6)Domestic enquiry continues and Enquiry officer will present his report.
7)On the basis of enquiry officer reporty 2nd show cause notice is send to the accused which states that his charges are proved and why management should not terminate his services explanation is demanded ( Principle of Natural justice)
8) After receiving the explantion the decision of management matter whether to discharge the services / suspension / degrade / stopping his increment / take him back on services.
If their is any addition / edition in above procedure than your comments are welcome.
If any one want any other information they can call me on 9909001742.
Regards
Abhijeet Sawant
From India, Ahmadabad
ITs very good posting and useful to all HR related,every body face this type of situation in their service good keep postings. Regards Prasad.A.
From India, Visakhapatnam
From India, Visakhapatnam
Hi Everybody,
While going through the provisions of 'Standing Orders Act' 1946, I came across the following information:
Industrial Employment (Standing Orders) Act, 1946
[Act No. 20 of 1946 As Amended by Acts Nos. 3 of 1951, 36 of 1956,16 of 1961, 39 or 1963 , 51 of 1970 and 18 of 1982 ]
[23rd April, 1946]
Act requires employers in industrial establishments formally to define
conditions of employment under them.
Whereas it is expedient to require employers in industrial establishments to define with sufficient precision the conditions of employment under them and to make the said conditions known to workmen employed by them.
It is hereby enacted as follow :
1.Short title, extent and application.-
(1) This act may be called the Industrial Employment (Standing Orders) Act, 1946.
(2) It extends to the whole of India
(3) It applies to every industrial establishment wherein one hundred or more workmen are employed, or were employed on any day of the preceding twelve months
It applies to railways, factories, mines, quarries, oil-fields, tramways, motor services, docks, plantations, workshops, civil construction and maintenance works.
The Act has 15 sections and a schedule.
It applies to all the skilled or unskilled, manual, supervisory, technical, clerical work.
The apprentices are also included.
The persons employed mainly in a managerial/administrative/supervisory capacity drawing wages exceeding Rs.1600 are not covered.
With special reference to Section 10(A),
Section 10-A. Payment of subsistence allowance.--(1) Where any workman is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, the employer shall pay to such workman subsistence allowance-
(a) at the rate of fifty per cent of the wages which workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and
(b) at the rate of seventy-five per cent of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.
Looking at this information, kindly guide me :
(i) Whether 'Standing Orders Act', as it is, applicable to other establishments not mentioned specifically in the Act, like ' An Educational Group' ?
(ii) Will the quantum of subsistence allowance be the same (50% of Basic+DA) for a suspended employee drawing basic Rs.24,600 which is much more than Rs. 1600 ?
From India, Delhi
While going through the provisions of 'Standing Orders Act' 1946, I came across the following information:
Industrial Employment (Standing Orders) Act, 1946
[Act No. 20 of 1946 As Amended by Acts Nos. 3 of 1951, 36 of 1956,16 of 1961, 39 or 1963 , 51 of 1970 and 18 of 1982 ]
[23rd April, 1946]
Act requires employers in industrial establishments formally to define
conditions of employment under them.
Whereas it is expedient to require employers in industrial establishments to define with sufficient precision the conditions of employment under them and to make the said conditions known to workmen employed by them.
It is hereby enacted as follow :
1.Short title, extent and application.-
(1) This act may be called the Industrial Employment (Standing Orders) Act, 1946.
(2) It extends to the whole of India
(3) It applies to every industrial establishment wherein one hundred or more workmen are employed, or were employed on any day of the preceding twelve months
It applies to railways, factories, mines, quarries, oil-fields, tramways, motor services, docks, plantations, workshops, civil construction and maintenance works.
The Act has 15 sections and a schedule.
It applies to all the skilled or unskilled, manual, supervisory, technical, clerical work.
The apprentices are also included.
The persons employed mainly in a managerial/administrative/supervisory capacity drawing wages exceeding Rs.1600 are not covered.
With special reference to Section 10(A),
Section 10-A. Payment of subsistence allowance.--(1) Where any workman is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, the employer shall pay to such workman subsistence allowance-
(a) at the rate of fifty per cent of the wages which workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and
(b) at the rate of seventy-five per cent of such wages for the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.
Looking at this information, kindly guide me :
(i) Whether 'Standing Orders Act', as it is, applicable to other establishments not mentioned specifically in the Act, like ' An Educational Group' ?
(ii) Will the quantum of subsistence allowance be the same (50% of Basic+DA) for a suspended employee drawing basic Rs.24,600 which is much more than Rs. 1600 ?
From India, Delhi
- My query is statutory deduction is not required to deduct/pay i.e PF, ESIC then why should we use term Basic Salary for payment of subsistence allowance. Thanks,
From India, Mumbai
From India, Mumbai
Dear Ms Neha,
its very necesary to make standing orders with all the points covered in it. initaily when ur estb reach 50 or more u have 2 apply i.e draft standing orders with concern of max employes or union. if there is no dif the chief inspector of factories will certify i.e caled certified standing orders. so if diff continues till model standing orders wil be aplicable.
so as per Ms. neha query : industrail & estb where 50 or more employes standing orders is madatory & for education institute it may be 100 or more. plz senior clearfy in regard to wages, bcoz the same confusion with gross wages or basic + DA
regards
ramnath
From India, Bangalore
its very necesary to make standing orders with all the points covered in it. initaily when ur estb reach 50 or more u have 2 apply i.e draft standing orders with concern of max employes or union. if there is no dif the chief inspector of factories will certify i.e caled certified standing orders. so if diff continues till model standing orders wil be aplicable.
so as per Ms. neha query : industrail & estb where 50 or more employes standing orders is madatory & for education institute it may be 100 or more. plz senior clearfy in regard to wages, bcoz the same confusion with gross wages or basic + DA
regards
ramnath
From India, Bangalore
Subsistence allowance is to be paid based on the last drawn wages before the suspended month.
It is 50 % for the first 90 days and if the delay is not due to the fault of the employee then 75 % for next 90 days and thereafter at 100 % of the wages. However, if the employee refused to participate in the disciplinary action or dealys the same under one pretext or other then only 50 % subsistence allowance is payable.
ESI contribution alone is payable on the subsistence allowance, as per case laws.
In the event of dismissal as outcome of the disciplinary action, then subsistence allowance is to be paid till the date of dismissal by MO or bank DD and to be issued / sent to the employee at least one day before the dismissal.
M.Venkatraghavan
From India, Selam
It is 50 % for the first 90 days and if the delay is not due to the fault of the employee then 75 % for next 90 days and thereafter at 100 % of the wages. However, if the employee refused to participate in the disciplinary action or dealys the same under one pretext or other then only 50 % subsistence allowance is payable.
ESI contribution alone is payable on the subsistence allowance, as per case laws.
In the event of dismissal as outcome of the disciplinary action, then subsistence allowance is to be paid till the date of dismissal by MO or bank DD and to be issued / sent to the employee at least one day before the dismissal.
M.Venkatraghavan
From India, Selam
If you do not want to use the term "basic salary"; then ON WHAT BASIS YOU SHALL PAY 50% ? Basic pay is the "basis" of salary and wages; however, it is being fixed randomly - as evident from many posts asking "what should be the basic pay ?", as companies/HR's find it easy and convenient to work on Gross Pay and CTC basis (which is not a good practice).
(i) In the absence of Standing Order:
or, where it is not applicable; there are other Disciplinary and Conduct rules; which generally have the same/similar provisions; as established laws prevail over situations unspecified/unwritten.
Therefore, ideally the same provisions should apply.
(ii) Quantum of Subsistence Allowance :
should remain the same (%age wise), irrespective of Basic Pay.
Warm regards.
From India, Delhi
(i) In the absence of Standing Order:
or, where it is not applicable; there are other Disciplinary and Conduct rules; which generally have the same/similar provisions; as established laws prevail over situations unspecified/unwritten.
Therefore, ideally the same provisions should apply.
(ii) Quantum of Subsistence Allowance :
should remain the same (%age wise), irrespective of Basic Pay.
Warm regards.
From India, Delhi
Dear friends,
I have gone through the replies of senior and juniors. It was really good. At the same time many versions have also mixed up. The version of 50%,75%,100% is correct.
Regarding ESI /PF:
Since the employee is under supension where his mistakes have not been proved, he continues to be a contributing member of ESI. This is because at present his suspension would have been in the benefit period and if his ESI is not deducted now, it may affect the next corresponding benefit period. By then he may rejoin when suspension is revoked and he will be deprived of ESI facilities.
As per the General PF Rules, the member under suspension cannot subscribe to the fund. In form-3A (Member Annual contribution card), a column for Non contribution days is provided with From - To period.
Correct me if wrong.
Rgds,
Chandru
From India, Madras
I have gone through the replies of senior and juniors. It was really good. At the same time many versions have also mixed up. The version of 50%,75%,100% is correct.
Regarding ESI /PF:
Since the employee is under supension where his mistakes have not been proved, he continues to be a contributing member of ESI. This is because at present his suspension would have been in the benefit period and if his ESI is not deducted now, it may affect the next corresponding benefit period. By then he may rejoin when suspension is revoked and he will be deprived of ESI facilities.
As per the General PF Rules, the member under suspension cannot subscribe to the fund. In form-3A (Member Annual contribution card), a column for Non contribution days is provided with From - To period.
Correct me if wrong.
Rgds,
Chandru
From India, Madras
According to AP Shops & Establishment act 1988, the suspended employee is entitled to get 50% of wage for the first six months. During this six months period the enquiry has not completed aganist him, the said employee will be eligible for 75% of wage till the end of the second six months period. After completion of one year, if the management failed to prove the lapse the suspended employee is eligible for getting full wage untill the lapse proved and these one year period will be treated as On Duty.
From India, Pune
From India, Pune
Thanks Mr Chandrasekhar and Ramachndran,
The Supreme Court has held in the case of RD, ESIC Vs.M/s.Popular Automobiles etc.in its judgement dt. 29.9.97 in Civil appeal no.3850 of 1993 that ‘suspension/subsistence allowance is wage and contribution is payable under Sec.2(22) on the said amount’
Regards,
Madhu.T.K
From India, Kannur
The Supreme Court has held in the case of RD, ESIC Vs.M/s.Popular Automobiles etc.in its judgement dt. 29.9.97 in Civil appeal no.3850 of 1993 that ‘suspension/subsistence allowance is wage and contribution is payable under Sec.2(22) on the said amount’
Regards,
Madhu.T.K
From India, Kannur
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SC directive on subsistence allowance to suspended staff.doc