It is therefore necessary for HR to build competencies and knowledge to win confidence of the management in it's competencies so that when HR speaks, management listens and there are HRs who rose to this position.
BSaikumar
HR & IR Advisor
From India, Mumbai
1897BSaikumar
HR & IR Advisor
From India, Mumbai
An employee is put under suspension when it is apprehended that there are grave charges against him/ her or the misconduct may fall in the category of major misconduct and not as a matter of routine. Although suspension in itself is no punishment yet it is a social stigma for the employee.The social image of the employee is badly hit.And, if in the enquiry nothing is proved against him, his social image can not be immediately restored.Hence while resorting to suspension, the decision should be taken after carefully considering all the aspects of the case.During suspension the employee is entitled for one third, one half or full wages as provided in the contract of employment or in service conditions/ disciplinary rules.
SP Singh
Retired Dy. General Manager,
Punjab National Bank
From India, Ghaziabad
SP Singh
Retired Dy. General Manager,
Punjab National Bank
From India, Ghaziabad
Dear SP Singh ji,
Thanks for your contribution.
I wish to just elaborate your post to bring legal clarity in the matter, with due respect to you.
Wages paid during suspension pending enquiry is called as subsistence allowance which is payable according to applicable SO(IE) Act or according to service conditions subjected to.
This subsistence allowance whether it is a wages or not wages, there is a controversy. There are different conflicting views by different H.C. under different enactment. There is a decision by Supreme Court stating that subsistence allowance is wages but that is in ESI. However, under EPF&MP Act subsistence allowance is not wages.
From India, Mumbai
Thanks for your contribution.
I wish to just elaborate your post to bring legal clarity in the matter, with due respect to you.
Wages paid during suspension pending enquiry is called as subsistence allowance which is payable according to applicable SO(IE) Act or according to service conditions subjected to.
This subsistence allowance whether it is a wages or not wages, there is a controversy. There are different conflicting views by different H.C. under different enactment. There is a decision by Supreme Court stating that subsistence allowance is wages but that is in ESI. However, under EPF&MP Act subsistence allowance is not wages.
From India, Mumbai
Dear Mr. Ranjeet,
Many learned followers have contributed. I take this opportunity to give my views.
In most of the organizations, there is a Certified Standing Order(CSO) applicable to the working class in that organization. In absence of CSO, Model Standing Order(MSO) is followed. These provisions spell out the misconducts of major and minor nature, penalty to be imposed, treatment of period of suspension, subsistence allowance provision etc.
Some misconducts, which are of minor in nature, attract minor penalty like - Show cause, warning, recordable warning, stoppage of increment without cumulative effect etc. But some misconduct like - theft, damage to company's property or image, riotous behaviour, deeds involving moral turpitude, bribery, tempering with records etc. etc. (details given in CSO/MSO) attract major penalty. Before imposing major penalty, the following steps may be taken.
a) First of all a written complaint must be obtained regarding misconduct from a responsible official/supervisor or any other co-workman duly signed/forwarded by section manager or any superior.
b) After receipt of written complaint, a preliminary inquiry may be conducted. If prima-facie case exists, an approval should be obtained from Disciplinary Authority(DA) to initiate disciplinary action against accused workman, or the show cause/chargesheet should be signed by DA, giving atleast 03 days time for explanation. The accused workman can be put under suspension pending detailed departmental inquiry.
c) If explanation is not found satisfactory, departmental inquiry is to be constituted, consisting of IO, Mgt.reptv. and the accused workman is to be allowed assistance of co-worker of his choice. The inquiry will proceed and findings on the charges framed as to whether charged proved or not proved or partially proved. Based on the findings penalty (minor/major) is to be imposed by passing a reasoned order by DA.
d) If the workman is placed under suspension, normally subsistence allowance is paid after expiry of 3rd day/10th day as per provisions of Standing Order being followed. After this period, subsistence allowance is paid @ 50% of wages/salary(Basic+DA). This rate is to 75% if the inquiry proceedings and suspension continues beyond 21/30 days due to reasons not attributed to accused workman and it is reduced to 25% if proceedings are delayed due to reasons attributable to accused workman. During the suspension period, the employee has to put in/ get his/her attendance marked in a separate register kept for the purpose. He has to give a certificate of non-employment at any other place at certain duration for making him/her eligible for payment of subsistence allowance. Double employment is not allowed. If the accused workman is found guilty of misconduct, he is not paid any wages for the period except the subsistence allowance already paid, but if he/she is exonerated, full wages for the entire suspension period after deduction of subsistence allowance already paid is payable.
Hope this will give a better view of dealing with such cases.
A word of caution : Suspension should be the last resort and the gravity of misconduct should be so warranting suspension. Otherwise HR personnel are a soft target for both - higher management, the workers and their representing unions.
Best wishes
AK Jain
From India, Jabalpur
Many learned followers have contributed. I take this opportunity to give my views.
In most of the organizations, there is a Certified Standing Order(CSO) applicable to the working class in that organization. In absence of CSO, Model Standing Order(MSO) is followed. These provisions spell out the misconducts of major and minor nature, penalty to be imposed, treatment of period of suspension, subsistence allowance provision etc.
Some misconducts, which are of minor in nature, attract minor penalty like - Show cause, warning, recordable warning, stoppage of increment without cumulative effect etc. But some misconduct like - theft, damage to company's property or image, riotous behaviour, deeds involving moral turpitude, bribery, tempering with records etc. etc. (details given in CSO/MSO) attract major penalty. Before imposing major penalty, the following steps may be taken.
a) First of all a written complaint must be obtained regarding misconduct from a responsible official/supervisor or any other co-workman duly signed/forwarded by section manager or any superior.
b) After receipt of written complaint, a preliminary inquiry may be conducted. If prima-facie case exists, an approval should be obtained from Disciplinary Authority(DA) to initiate disciplinary action against accused workman, or the show cause/chargesheet should be signed by DA, giving atleast 03 days time for explanation. The accused workman can be put under suspension pending detailed departmental inquiry.
c) If explanation is not found satisfactory, departmental inquiry is to be constituted, consisting of IO, Mgt.reptv. and the accused workman is to be allowed assistance of co-worker of his choice. The inquiry will proceed and findings on the charges framed as to whether charged proved or not proved or partially proved. Based on the findings penalty (minor/major) is to be imposed by passing a reasoned order by DA.
d) If the workman is placed under suspension, normally subsistence allowance is paid after expiry of 3rd day/10th day as per provisions of Standing Order being followed. After this period, subsistence allowance is paid @ 50% of wages/salary(Basic+DA). This rate is to 75% if the inquiry proceedings and suspension continues beyond 21/30 days due to reasons not attributed to accused workman and it is reduced to 25% if proceedings are delayed due to reasons attributable to accused workman. During the suspension period, the employee has to put in/ get his/her attendance marked in a separate register kept for the purpose. He has to give a certificate of non-employment at any other place at certain duration for making him/her eligible for payment of subsistence allowance. Double employment is not allowed. If the accused workman is found guilty of misconduct, he is not paid any wages for the period except the subsistence allowance already paid, but if he/she is exonerated, full wages for the entire suspension period after deduction of subsistence allowance already paid is payable.
Hope this will give a better view of dealing with such cases.
A word of caution : Suspension should be the last resort and the gravity of misconduct should be so warranting suspension. Otherwise HR personnel are a soft target for both - higher management, the workers and their representing unions.
Best wishes
AK Jain
From India, Jabalpur
Hi Jeeni,
To some small companies, maybe that exists. However, HR should be a separate department from Operations. If this will not be bifurcated, there is a huge tendency that your organization will put into chaos. No clear KPI means low satisfatorily output from your employees.
Hope this helps.
From Philippines, Davao City
To some small companies, maybe that exists. However, HR should be a separate department from Operations. If this will not be bifurcated, there is a huge tendency that your organization will put into chaos. No clear KPI means low satisfatorily output from your employees.
Hope this helps.
From Philippines, Davao City
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Prolonged Suspension of the employee.docx