Standing Orders-Payment of Subsistence Allowance

Standing Orders-Payment of Subsistence Allowance

What is Payment of Subsistence Allowance ?

When the suspension of any workmen by the employer is pending for the investigation or enquiry. Into the complaints and charges against him of misconduct, then the employer is liable to pay the workmen  subsistence allowance.

Who and when?

1. At fifty per cent rate of the wages to which the workman had an entitlement to. For the first ninety days of suspension, preceding the date of such suspension.
2. Or, at seventy-five per cent rate of such wages. For the remaining period of suspension. If there is no direct conduct of such workman with the delay in the completion of disciplinary proceedings against such workman.
3. He is required to produce a certificate to the effect that he has not engaged himself in any other employment(s) such as business, trade, profession, vocation, etc., during the period of suspension and is further subject to review as provided in the Company’s Rules.

Also if any dispute arises regarding the subsistence allowance payable to a workman under sub-section of the Act. The dispute may refer to labour court by the workman or the employer. Constituted under the Industrial Disputes Act, 1947 within the local limits of whose jurisdiction the industrial establishment is. Thus, wherein such workman is employed is situate and the Labour Court. To which the dispute is so referred shall, after giving the parties an opportunity of being heard. Then, decide the dispute and such decision shall be final and binding on the parties.

Under this Section, notwithstanding anything contained in the foregoing provisions of the Act. For the time being where provisions relating to payment of subsistence allowance under any other law. In force in any State are more beneficial than the provisions of this section, the provisions of such other law shall be applicable to the payment of subsistence allowance in that State.