Once an employer suspends an employee, subsistence allowance will be payable

Contributed by Deepak Miglani

A suspension is an action which places an employee for disciplinary reasons in a temporary status without duties and pay. A suspension, regardless of duration, is a significant action and considered a severe disciplinary action.

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. Once an employer suspends an employee, it becomes his duty to pay subsistence allowance and under Model Standing Orders, there is express provision which entitles the workman for the subsistence allowance.

When an employee is suspended , his contract of service is not rescinded and the relationship of employer and employee subsists.The Suspension of an employee merely prohibits an employer from giving any work to the employee during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.

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