CHANAKYA NATIONAL LAW UNIVERSITY
PAYMENT OF SUBSISTENCE ALLOWANCE UNDER ST STANDING ANDING ORDER ACT ACT,1946 ,1946 SUBMITTED BY:MD BY:MD SHAIQUE ROLL NO:559 5TH SEMESTER SUBMITTED TO:DR.S.C RAO.
.
ACKNOWLEDGEMENT The
present
projet
on
the
top!
"#A "# AYMENT
ALLOWANCE ALLOW ANCE UNDER STANDIN% STANDIN% ORDER ACT&'()*+
O$
SUBSISTENCE
h,s -een -een ,-.e to /et
!ts 0n,. sh,pe 1!th the s2pport ,n3 he.p o4 peop.e 4ro5 6,r!o2s 72,rters8 M9 s!nere th,ns /o to ,.. the 5e5-ers 1!tho2t 1ho5 the st239 o2.3 not h,6e o5e to !ts present st,te8 I ,5 pro23 to ,no1.e3/e /r,t!t23e to the !n3!6!32,.s 32r!n/ 59 st239 ,n3 1!tho2t 1ho5 the st239 5,9 not
-e o5p.ete o5p.ete38 38 I h,6e h,6e t,en th!s th!s opport2n opport2n!t9 !t9 to th,n th,n those those
1ho /en2!n /en2!ne.9 e.9 he.pe3 he.pe3 5e8 5e8 In I n the o5p. o5p.et!on et!on o4 th!s projet 5,n9 peop.e he.pe3 2s 3!ret.9 3!ret. 9 ,n3 !n3!ret.98 $!rst o4 ,.. 1e 1o2.3 .!e to th,n 59 2n!6ers!t9 !8e8 CHANAKYA NATIONAL LAW UNIVERSITY& #ATNA& 1ho /,6e 2s the !3e, ,n3 eno2r,/e5ent to 6ent2re !nto th!s projet8
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to
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"#A "# AYM YMENT ENT
O$
SUBS SU BSIS ISTE TENCE NCE
ALLOWANCE ALLOW ANCE UNDER UNDE R STANDIN% ORDER ACT&'()*+8 An9 sort o4 ,33!t!on& ,.ter,t!on ,n3 r!t!!s5 re/,r3!n/ o2r 1or !s 5ost 1e.o5e8 I h,6e 5,3e e6er9 e44ort to ,no1.e3/e re3!ts& -2t I ,po.o/!es !n ,36,ne 4or ,n9 o5!ss!on th,t 5,9 h,6e !n,36ertent.9 t,en p.,e8 L,st -2t not .e,st I 1o2.3 .!e to th,n A.5!/ht9 1hose -.ess!n/ he.pe3 5e to o5p.ete the projet8
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MD8SHAIQUE ;;( ; THSEMESTER
R ESE ARC H M ETHO D OLOGY AIMS < OB=ECTIVES: The ,!5 o4 the projet !s to present , 3et,!.e3 st239 o4 " #AYMENT O$ SUBSISTENCE ALLOWANCE
UNDER
STANDIN% ORDER
ACT&'()*+
thro2/h 3e!s!ons ,n3 s2//est!ons ,n3 3!44erent 1r!t!n/s& ,rt!.es < reports8
SOURCES O$ DATA: The 4o..o1!n/ seon3,r9 so2res o4 3,t, h,6e -een 2se3 !n the projet> Art!.es Boos We-s!tes
METHOD O$ WRITIN%: The 5etho3 o4 1r!t!n/ 4o..o1e3 !n the o2rse o4 th!s rese,rh p,per !s pr!5,r!.9 ,n,.9t!,.8
MODE O$ CITATION : The rese,rher h,s 4o..o1e3 , 2n!4or5 5o3e o4 !t,t!on thro2/ho2t the o2rse o4 th!s rese,rh p,per8
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INDEX
1. Introducton!!!!!!!!!!!!!!!!!!!..!!!.!!!!!"# $. O%&'ct o( St)ndn* Ord'r Act!!!!!!!!!!!!!!!!!!!!.."+
,. Sco-' )nd )--c)ton!!!!!!!!!!!!!!!!!!!!!!!!"/
#. I0-ort)nt d'(nton 2 -roc'dur'!!!!!!!!!!!!!!.!..!."341$
+. Su%t'nc' )o5)nc' und'r St)ndn* Ord'r Act617#/!!!!!!!!..1,41+
/. 8udc) noton!!!!!!!!!!!!!!!!!!!!!!!!!.1/413 )9D'n) o( u%t'nc' )o5)nc' '*) : HC!!!!!!!!!!!!!!1/ %9Su-r'0' court dr'ct' o( u%t'nc' )o5)nc' to u-'nd'd '0-o;''!.13 3. Su%t'nc' )o5)nc' und'r Cor-or)t' L)5!!!!!!!...!!!.!..1<4$"
8. Concuon!!!!!!!!!!!!!!!!!!!!!!!!!!!!..$1 9. B%o*r)-=;!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!$$
INTRODUCTION
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The absence of standing orders in establishment ver often led to friction bet!een the management and !or"ers in ind#strial #nderta"ings in o#r co#ntr. $efore %assing of this &ct the conditions of the em%loment !ere governed b contracts either e'%ress or im%lied bet!een the em%loers and their em%loees in different ind#strial #nderta"ings. (n man cases these conditions !ere not !ell defined and s#ffered from do#bt and ambig#it.
)ith the advent of trade #nionism and collective bargaining ne! %roblems of maintaining ind#strial %eace and %rod#ction for the societ !ere created. (t !as then considered that the societ had a vital interest in the settlement of terms of em%loment of ind#strial labo#r and th#s the settlement of labo#r %roblems became tri%artite and the state* re%resenting the societ entered on the scene+.
The im%ortance of ma"ing a la! defining %recisel the conditions of em%loment !as em%hasi,ed d#ring disc#ssions in the tri%artite labo#r conferences. To give effect to the ne! ideolog the ind#strial em%loment -standing orders&ct*+9/0 !as enacted b the central government. (t is obligator #%on all the em%loers covered b this &ct to define conditions of em%loment #nder them. The conditions of em%loment m#st also be made "no!n to !or"men em%loed b s#ch em%loers.
The %reamble of the &ct ma"es it am%l clear that the standing order shall deal !ith the 1condition of the em%loment of the !or"ers in the ind#strial establishment2. These !ords are !ide eno#gh to incl#de acts !hich ma be commited even o#t of the factor %remises3.The ob4ect of the act is to reg#late the conditions of recr#itment* discharge disci%linar action* holidas etc.* of the !or"ers em%loed in ind#strial #nderta"ings.
+ )estern india match co. v.!or"men*&.(.R. +96 S.7. 3058. 3 Shahadara s. light rail!a co. v. s.s. rail!a !or"ers #nion* &.(.R. +909 S.7. 5+6.
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OB8ECT O> STANDING ORDER ACT The ob4ect of the &ct is to re#ire the em%loers in ind#strial establishment to define !ith s#fficient %recision the conditions of em%loment #nder them and to ma"e the said conditions "no!n to the !or"men em%loed #nder them. The aims of the &ct are as follo!s :
To define %recisel the terms and conditions of em%loment and to comm#nicate them to the !or"men in the ind#strial establishments.
To bring abo#t #niformit in the terms and conditions of em%loment in all ind#strial establishments to !hich the &ct a%%lies.
To reg#late the standards of cond#ct of em%loers and to establish a basis for harmonio#s labo#r management relations.
To ens#re satisfactor em%loment conditions and to maintain %ro%er disci%linenecess ar for high %rod#ctivit.
To s%ecif the d#ties and res%onsibilities of both the em%loer and the em%loees
To %rovide redressal of grievances arising o#t of em%loment or #nfair treatment b the em%loer.
To %rovide stat#tor sanctit and significance to the standing orders.
SCO?E AND A??LICATION 6 | #,/e
The &ct e'tends to the !hole of (ndia. (t a%%lies to ever ind#strial establishment !herein +88 or more !or"men are em%loed on an da of the %receding +3 months. The a%%ro%riate ;overnment ma also* after giving not less than 3months notice of its intention to do so* b notification in the Official ;a,ette* a%%l the %rovisions of the &ct on an ind#strial establishment
em%loing
less
than
+88
%ersons.
The a%%ro%riate government can also e'em%t conditionall or #nconditionall anind#strial establishment from all or an of the %rovisions of the &ct Once the &ct becomes a%%licable to an ind#strial establishment it does not cease to a%%l d#e to fall in the n#mber of !or"men in that establishment belo! +886.
The &ct does not a%%l to / : -+&n ind#str to !hich the %rovisions of 7ha%ter <(( of the $omba (nd#strial Relations &ct +9/0 a%%l= or -3&n ind#strial establishment to !hich the %rovisions of Madha >radesh (nd#strial Em%loment -Standing Orders &ct +90+ a%%l. -6&n ind#strial establishment in so far as the !or"men em%loed therein are %ersons to !hom the follo!ing r#les a%%l : -aThe ?#ndamental and S#%%lementar R#le. -bThe 7ivil Services-7lassification* 7ontrol and &%%eal R#les -cThe 7ivil Services -Tem%orar Services R#les -dThe Revised Leave R#les. -eThe 7ivil Services Reg#lations. -fThe 7ivilians in @efence Service -7lassification* 7ontrol and &%%ealR#les -gThe (ndian Rail!a Establishment 7ode . -h&n other r#les and A or reg#lations that ma be notified in this behalf bthe a%%ro%riate ;overnment in the Official ;a,ette.
IM?ORTANT DE>INITIONS 6 htt%:AA!!!.citehr.comA/603BC%amentCs#bsistenceCallo!ance.html / (bid.
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A--')t' Aut=ort;
DSec 3-a (t means an a#thorit a%%ointed b the a%%ro%riate ;overnment b notification in the official ;a,ette to e'ercise in s#ch areas as ma be notified in the f#nction of an a%%ellate a#thorit #nder this &ct. $#t in relation to an a%%eal %ending before an ind#strial co#rt or other
a#thorit
immediatel
before
the
commencement
of
the
(nd#strial
Em%loment-Standing Orders &mendment &ct +905*the 7o#rt or a#thorit shall be deemed to be the a%%ellate a#thorit.
A--ro-r)t' Go'rn0'nt
DSec 3-b (t means in res%ect of ind#strial establishments #nder the control of the 7entral ;overnment and a Rail!a &dministration or in Ma4or %ort* mine or oil field* the 7entral ;overnment. (n all other cases it means the State ;overnment. )here an #estion as to !hether an establishment is #nder the control of
the 7entral ;overnment* that ;overnment ma after giving the %arties an o%%ort#nit of being heard* decide the #estion and s#ch decision shall be final and binding on all %arties.
C'rt(;n* O((c'r
DSec 3F (t means a Labo#r 7ommissioner or a Regional Labo#r 7ommissioner and incl#des an other officer a%%ointed b the a%%ro%riate ;overnment* b notification in the Official ;a,ette* to %erform all or an of the f#nctions of a certifing officer #nder the &ct.
E0-o;'r
DSec 3 -d (t means the o!ner of an ind#strial establishment to !hich the &ct for the time being a%%lies and incl#des :- iin a factor an %erson na me d #nder Sec - + of the ?a ct or ie s &ct +9 /B * as manager of the factor=-ii in an ind#strial establishment #nder the control of an de%artment of an de%artment of the ;overnment of (ndia* the a#thorit a%%ointed b s#ch government on this behalf* or !here no a#thorit is so a%%ointed the head of the de%artment-iii in an other ind#strial establishment* an %erson res%onsible to the o!ner for the s#%ervision and control of the ind#strial establishment.
Indutr) Et)%=0'nt
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DSec 3-e (t means : -4an ind#strial establishment as defined in Sec 3-ii of the >a me nt of )age &ct +960.-ii a factor as defined in Sec 3 -m of the ?actories &ct +9/B-iii a rail!a as defined in Sec 3-/ of the (ndian Rail!as &ct +B98.-iv establishment of a %erson !ho* for the %#r%ose of f#lfilling a contract !ith the o!ner of an ind#strial establishment em%los !or"men.
St)ndn* Ord'r
The 7entral ;overnment* that ;overnment ma after giving the %arties an o%%ort#nit of being heard* decide the #estion and s#ch decision shall be final and binding on all %arties.
C'rt(;n* O((c'r
DSec 3F (t means a Labo#r 7ommissioner or a Regional Labo#r 7ommissioner and incl#des an other officer a%%ointed b the a%%ro%riate ;overnment* b notification in the Official ;a,ette* to %erform all or an of the f#nctions of a certifing officer #nder the &ct.
E0-o;'r
DSec 3 -d (t means the o!ner of an ind#strial establishment to !hich the &ct for the time being a%%lies and incl#des :- iin a factor an %erson na me d #nder Sec - + of the ?a ct or ie s &ct +9 /B * as manager of the factor=-ii in an ind#strial establishment #nder the control of an de%artment of an de%artment of the ;overnment of (ndia* the a#thorit a%%ointed b s#ch government on this behalf* or !here no a#thorit is so a%%ointed the head of the de%artment-iii in an other ind#strial establishment* an %erson res%onsible to the o!ner for the s#%ervision and control of the ind#strial establishment.
Indutr) Et)%=0'nt
DSec 3-e (t means : -4an ind#strial establishment as defined in Sec 3-ii of the >a me nt of )age &ct +960.-ii a factor as defined in Sec 3 -m of the ?actories &ct +9/B-iii a rail!a as defined in Sec 3-/ of the (ndian Rail!as &ct +B98.-iv establishment of a %erson !ho* for the %#r%ose of f#lfilling a contract !ith the o!ner of an ind#strial establishment em%los !or"men.
St)ndn* Ord'r
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DSec 3 -g These im%l r#les relating to matters set in the Sched#le to the &ct.
THE SCHEDULE
DSecs 3 -g and 6 -3
M)t'r to %' ?rod'd n St)ndn* Ord'r
+.7lassification of !or"men* e.g.* !hether %ermanent* tem%orar* a%%rentices* %robationers or badlis. 3.Manner of intimating to !or"men %eriods and ho#rs of !or"* holidas* %aCdas )age r#les .6.Shift !or"ing. /.&ttendance and late coming. 5.7onditions of %roced#re in a%%ling for* and a#thorit !hich ma grant leave or holidas. 0.Re#irement to enter %remises b certain gates and liabilit to search. .7losing and reo%ening of sections of ind#strial establishment* tem%orar sto%%ages of !or" and rights and liabilities of the em%loer and the !or"man arising there from. B.Termination of em%loment* and the notice thereof to be given b em%loer and !or"men. 9.S#s%ension and dismissal for miscond#ct and acts or omissions !hich contrib#te to miscond#ct +8.Means of redress of !or"men against #nfair treatment or !rongf#l e'tractions b the em%loer or his agents or servants. ++.&n other matter !hich ma be %rescribed.
Wor@0'n
DSec 3-i G)or"men means an %erson -incl#ding an a%%rentice em%loed in an ind#strial em%loment to an s"illed* or #ns"illed* man#al* s#%ervisor* technical or clerical !or" for hire or re!ard* !hether the terms of em%loment be e'%ress or im%lied* b#t does not incl#de an s#ch %erson : -i)ho is s#b4ect to &rm &ct* +958 or &ir ?orce &ct +958* or the Nav &ct +95 -ii )ho is em%loed in the %olice service or as an officer or other em%loee of a %erson -iii)ho is em%loed mainl in a managerial or administrative ca%acit -iv)ho being em%loed in a s#%ervisor ca%acit dra!s !ages e'ceeding Rs 6888 %er men.
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-v)ho e'ercises* either either b the nat#re of the d#ties attached to the office or b reason of %o!er invested in him* f#nctions mainl of a managerial nat#re. ?roc'dur' (or Su%0on o( Dr)(t St)ndn* Ord'r -Sec 6-+ )ith si' months of the a%%lication of this &ct to an ind#strial establishment the
em%loer shall s#bmit to the certifing officer 5 co%ies of the draft standing orders %ro%osed b him for ado%tion in his ind#strial establishment. -3S#ch draft standing order shall cover ever matter set o#t in the Sched#le to the &ct !hich ma be a%%licable to the ind#strial establishment. -6)here model standing orders have been %rescribed* the draft standing order shall be so far as %racticable* in conformit !ith s#ch model. -/The draft standing orders s#bmitted shall be accom%anied b a statement giving %rescribed %artic#lars of the !or"men em%loed in the ind#strial em%loment. The shall also give the nat#re of the trade #nion if an* to !hich the !or"men belong. -5S#b4ect to s#ch conditions as ma be %rescribed* a gro#% of em%loers in a similar ind#strial establishment ma s#bmit a 4oint draft of standing orders 5.
M)tt'r to %' -rod'd n St)ndn* Ord'r
-The Sched#le : The Sched#le to the &ct s%ecifies the follo!ing matters to be %rovided in the Standing orders0 :
7lassification of !or"men eg !hether %ermanent* tem%orar* a%%rentices* %robationers*
or
$adlis. Manner of intimating !or"men %eriods and ho#rs of !or"* holidas* %adas* and !age rates. Shift !or"ing &ttendance and late coming* 7onditions of* %roced#re in a%%ling for* and the a#thorit !hich ma grant leave and holidas. Re#irement to enter %remises b certain gates and liabilit to search.
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7losing and reo%ening of sections of the ind#strial establishment* tem%orar sto%%ages of !or"* and the rights and liabilities of the em%loer and !or"men arising there from. Termination of em%loment and notice thereof to be given b em%loer to !or"men. S#s%ension and @ismissal for miscond#ct and acts and omissions !hich constit#te miscond#ct. Means of redress for !or"men against #nfair treatment or !rongf#l e'action b the em%loer or his agents or servants. &n other matter !hich ma be %rescribed. There is no bar to the Standing Orders ma"ing %rovisions for other matters. Once s#ch %rovisions are made the are liable to be modified on the motion of either the em%loer or the !or"men #nder Sec +8-3 of this &ct.
Condton (or C'rt(c)ton o( St)ndn* Ord'r
DSec/Standing
Orders
are
to
be
certified
#nder
this
-a%rovision is made therein for ever matter set o#tin the sched#le !hich is
&ct
if
a%%licable
: for
ind#strial establishment -bThe Standing Orders are other!ise in conformit !ith the %rovisions of this &ct. (t is the f#nction
of
the
certifing
officer
or a%%ellate
a#thorit to ad4#cate #%on the
reasonableness or fairness of the %rovisions of an standing orders. Ho!ever their I#dgement m#st not be arbitrar or %erverse or inconsistent !ith the %rovisions of the &ct. (f no %rovision is made for anthing set o#t in the sched#le the certifing officer can add to the draft standing orders. He can amend the draft standing orders !here the lang#age #sed does not define !ith s#fficient %recision the conditions of em%loment .
?roc'dur' (or C'rt(c)ton o( St)ndn* Ord'r
DSec 5The %roced#re for certification of standing orders is as follo!s : -+On recei%t of the draft standing orders* the certifing officer for!ards a co% thereof to the trade #nion* or !here there is no trade #nion to the !or"men in a %rescribed manner. -3He also sends !ith the co% of the draft a notice in the %rescribed form re#iring ob4ections if an* !hich the !or"men ma desire to ma"e to the draft standing orders.
The al#mini#m (nd#stries em%loees #nion v. &l#mini#m (nd#stries Ltd.* &.(.R. +906 Orissa +09.
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-6The ob4ections are to be s#bmitted to him !ithin +5 das from date of the recei%t of the notice. -/He is re#ired to give o%%ort#nit to the em%loer or the trade #nion or s#ch other re%resentatives or the !or"men as ma be %rescribed of being heard if an modifications or addition to the standing order is to be made B. -5&fter the certifing officer then decides !hether or not an modification of or addition to the draft s#bmitted b the em%loer is necessar to render the draft standing orders certifiable #nder this &ct and then ma"es orders in !riting accordingl9. -0The 7ertifing officer then certifies the draft standing orders !ith themodifications if an. He then !ithin das sends co%ies of the certified standing orders and of his order to the em%loer* to the trade #nion or other %rescribed re%resentatives of !or"men. -The standing orders after their d#e certification then a%%lies to all !or"men em%loed in an ind#strial establishment before or after s#ch certification+8.
B Salem Erode Electricit @istrib#tion 7om%an->vt. v. Em%loees#nion* &.(.R. +900 S.7. B8B.
9 htt%:AA!!!.citehr.comA3+0635Cs#bsistenceCallo!ance.html +8 (bid.
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SUBSISTENCE ALLOWANCE UNDER STANDING ORDER ACT617#/. 1"4A9 ?);0'nt o( u%t'nc' )o5)nc'.
-+ )here an !or"man is s#s%ended b the em%loer %ending investigation or in#ir into com%laints or charges of miscond#ct against him* the em%loer shall %a to s#ch !or"man s#bsistence allo!ance. &t the rate of fift %ercent of the !ages !hich the !or"man !as entitled to immediatel %receding the date of s#ch s#s%ension* for the first ninet das of s#s%ension = and &t the rate of seventCfive %er cent. of s#ch !ages for the remaining %eriod of s#s%ension if the dela in the com%letion of disci%linar %roceedings against s#ch !or"man is not directl attrib#table to the cond#ct of s#ch !or"man.
-3 (f an dis%#te arises regarding the s#bsistence allo!ance %aable to a !or"man #nder s#bsection -+* the !or"man or the em%loer concerned ma refer the dis%#te to the Labo#r 7o#rt constit#ted #nder the (nd#strial @is%#tes &ct* +9/ -+/ of +9/ !ithin the local limits of !hose 4#risdiction the ind#strial establishment !herein s#ch !or"man is em%loed is sit#ate and the Labo#r 7o#rt to !hich the dis%#te is so referred shall* after giving the %arties an o%%ort#nit of being heard* decide the dis%#te and s#ch decision shall be final and binding on the %arties.
-6 Not!ithstanding anthing contained in the foregoing %rovisions of this section* !here %rovisions relating to %ament of s#bsistence allo!ance #nder an other la! for the time being in force in an State are more beneficial than the %rovisions of this section* the
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%rovisions of s#ch other la! shall be a%%licable to the %ament of s#bsistence allo!ance in that State++.
(n Kalyanpur Keshav Venkatarai Pai v. Corporation Bank 12* the %etitioner !as manager of cor%oration ban"* "albadevi branch *$omba. The %etitioner claimed s#bsistence allo!ance based on $omba sho%s and establishments act*+9/B and the standing orders act*+9/0. The standing orders &ct and r#les !ere m#tatis m#tandis made a%%licable for the %#r%ose of s#bsistence allo!ance to the em%loees of the establishments governed b the sho%s act. (t !as held that the standing orders act and r#les framed there #nder. Em%loees !ho are not !or"man as above !ill not be covered b section 6BC$ of the $omba sho%s and establishments act*+9/B. $ a%%ling the r#le of harmonio#s constr#ction* it is clear that legislat#re co#ld not have intended to confer on managerial em%loees the benefits if benevolent %rovisions meant %rimaril to %rotect G!or"man. Since manager of a ban" is not a !or"man he can not claim s#bsistence allo!ance.
(n R. Govendaraj and others v. Govt. Tool Room and Training Centre 1* the %etitioner !ho !ere em%loees of the res%ondent !ere s#s%ended for certain charges %ending domestic in#ir. (n the %etitioners !ere fo#nd g#ilt of the charges for !hich %#nishment b !a of red#ction !as im%osed and the !ere reinstalled in service. The em%loer order for recover of s#bsistence allo!ance %aid to them. This order !as challenged in this %etition. The concerned establishment %rovides that the em%loees fo#nd g#ilt shall be absent from d#t for the s#s%ension %eriod and shall not be entitled to an rem#neration. The Jarnata"a high co#rt held that the r#le meant that !here an em%loee is e'onerated he !ill be entitled for f#ll salar and allo!ances !hich he !o#ld have dra!n had he not been %laced #nder s#s%ension. The r#le does not sa that s#bsistence allo!ance %aid the constit#tion. The standing order can not be inter%reted in s#ch a manner as to come in conflict !ith the %rovisions of the constit#tion. ?#rther s#ch constr#ction !o#ld be violative of sction +8C& of the &ct. ++ htt%:AA!!!.va"ilno+.comAbareactsAind#strialem%lomentactAs+8a.htm +3 -3883 ((( L.L.I. +33 -7al.. +6 -+9BB ( L.L.I. 3// -$omba.
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(t !as held in Transport !anager v. Vilas sanu deokar and others 1"* that if an em%loer does not %rovide !or" to a badli !or"man b iss#ing no d#t order* it !o#ld not amo#nt to s#s%ension from !or". & %erson can be s#s%ended from %rovided there is a vested right in the !or"man to sec#re !or" from the em%loer everda !hile the contract of em%loment s#bsists. Ho!ever*in the case of a badli !or"man* the contract of em%loment comes into effect onl on the da he is given em%loment* and therefore* the #estion of s#s%ension from !or" on acco#nt of a Gno d#t order does not arise. & badli !or"man is one !ho %erform his d#t as and !hen !or" is made available to him b the em%loer. (f there can be s#s%ension from !or" of a badli !or"man* the #estion of being entitled to s#bsistence allo!ance d#ring the %eriod he is not allotted !or" does not arise. & s#bsistence allo!ance is intended to cover the e'%enses inc#rred b an inter%reter !or"ing a!a from hisAher %rofessional address. (t ma consist of a flatCrate amo#nt %aid %er da or ma involve an arrangement !hereb the conference organiser %as all or %art of the inter%reterKs accommodation and board. (n the agreement sector* these allo!ances are governed b the relevant agreement. (n the %rivate mar"et sector* the are negotiated bet!een the inter%reter and the client. )or"man !ho is %laced #nder s#s%ension shall d#ring the %eriod of s#ch s#s%ension be %aid a s#bsistence allo!ance at the follo!ing rates namel +5. ?or the first ninet das of the s#s%ension %eriod s#bsistence allo!ance to be %aid %er month shall be e#al to oneChalf of basic !ages* dearness allo!ance and other com%ensator allo!ances. (f the en#ir gets %rolonged and the !or"man contin#es to be #nder s#s%ension for a %eriod e'ceeding ninet das* the s#bsistence allo!ance to be %aid %er month for a f#rther %eriod of ninet das shall be e#al to three fo#rths of s#ch basic !ages* dearness allo!ance and other com%ensator allo!ances. (f the en#ir is not com%leted !ithin a %eriod for +B8 das* the !or"man shall be %aid basic !ages* dearness allo!ance and com%ensator allo!ance in f#ll as s#bsistence allo!ance to be %aid %er month #ntil s#ch time as the in#ir is finall concl#ded. >rovided that* !here the findings of the (n#ir Officer sho! that s#ch en#ir is %rolonged beond a %eriod of 98 das* or as the case ma be +B8 das for reasons directl attrib#table to the !or"man* s#bsistence allo!ance to be %aid %er months shall for the %eriod e'ceeding 98 das +/ -+998 ( l.l.4. +/8 -Jarn.. +5 htt%:AA!!!.citehr.comA+9556+Ca%%licableCded#ctionCs#bsistenceCallo!ance.html
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or as the case ma be +B8 das* shall be red#ced to one half of s#ch basic !ages* dearness allo!ance and other com%ensator allo!ance. The age for retirement or s#%erann#ation of the !or"man ma be si't ears or s#ch other age as ma be agreed #%on bet!een the em%loer and the !or"man b an agreement* settlement or a!ard !hich ma be binding on the em%loer and the !or"men #nder an la! for the time being in force +0.
8UDICIAL NOTION DENIAL O> SUBSISTENCE ALLOWANCE LEGAL : HC A)=)%)d: & division bench allahabad high co#rt has r#led that denial of %ament of
s#bsistence allo!ance to a s#s%ended em%loee if he fails to s#bmit a certificate* #nder s#bC r#le -+ and -3 of r#le 56 of the #% f#ndamental and s#bsidiar r#les that he is not engaged in an other em%loment* b#siness* %rofession or vocation* is legal. chief 4#stice s " sen and 4#stice r " agra!al in a 4#dgment has r#led that nonCs#bmission of the certificate b the a%%ellant is his o!n foll and he cannot ta"e advantage of it. the s%ecial a%%eal bench* has t#rned do!n the %lea of the a%%ellant that his dismissal from service is illegal and sho#ld to be #ashed on the gro#nd that he co#ld not %artici%ate in the de%artment %roceedings* d#e to nonC%ament of s#bsistence allo!ance* d#ring his s#s%ension %eriod. the bench* dismissed the a%%ellants a%%eal* filed against the order of the single 4#dge* on the gro#nd that the a%%ellant had failed to s#bmit certificate re#ired for getting s#bsistence allo!ance and he had not %leaded either before the de%artmental a#thorities or in the %etition that d#e to nonC %ament of s#bsistence allo!ance* he co#ld not %artici%ate in the %roceedings and conse#entl he !as terminated from service !itho#t follo!ing the %rinci%les of nat#ral 4#stice. the brief fact of the case !as that the a%%ellant s d g#%ta !as !or"ing as a cler" in nagar %ali"a bind"i in fateh%#r. he !as s#s%ended on ma +9* +9BB* d#ring de%artmental %roceeding. the charges against the a%%ellants !ere of indisci%line and irreg#larities ca#sing +0 7.M. >tel v. State* &.(.R. +9+ $om. 3//.
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financial loss to the m#nici%al board. #ltimatel he !as terminated on november B after com%leting the de%artmental %roceedings. the %etitioner had challenged the order of his termination before a single 4#dge of the high co#rt* !hich !as dismissed. the a%%ellant thereafter challenged the order of single 4#dge in a s%ecial a%%eal. the bench #%held the order of the single 4#dge and dismissed the a%%eal +.
SU?REME COURT DIRECTIE O> SUBSISTENCE ALLOWANCE TO SUS?ENDED EMLOYEES Ne! @elhi: The S#%reme 7o#rt has r#led that a government em%loee #nder s#s%ension is not entitled to s#bsistence allo!ance on the basis of a revised %a scale if the disci%linar action against him or her has been ta"en before the revision. & bench of I#stices R < Raveendran and J S Radha"rishnan in a 4#dgement said the s#s%ended em%loee is entitled to s#bsistence allo!ance on the basis of a revised %a scale if the s#s%ension had ta"en after the revision. (nter%reting r#le Note 6 to R#le of the Revised >a R#les and ?R 56-+-ii-a and Office Memorand#m dated 3th &#g#st* +95B of the nion of (ndia* the a%e' co#rt said the r#le is clear that if the revision of %a ta"es effect from a date %rior to the date of s#s%ension of a government servant then heAshe !o#ld be entitled to benefit of increment in %a and in the s#bsistence allo!ance for the %eriod of s#s%ension. $#t if the revision of scale of %a ta"es effect from a date falling !ithin the %eriod of s#s%ension then the benefit of revision of %a and the s#bsistence allo!ances !ill accr#e to him onl after reinstatement de%ending on the fact !hether the %eriod of s#s%ension is treated as d#t or not* I#stice Radha"rishnan !riting the 4#dgement said.
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The a%e' co#rt %assed the 4#dgement !hile #%holding an a%%eal filed b the 7entre challenging the directions %assed b the 7entral &dministrative Trib#nal and the @elhi High 7o#rt to %a s#bsistence allo!ance to R J 7ho%a* a s#s%ended em%loee of the Ministr of 7ommerce and Industries18.
S$S(STEN7E &LLO)&N7E N@ER 7OR>OR&TE L&) The (nd#strial @is%#tes &ct* +9/ D1(@&2* %rovides for an elaborate sstem of ad4#dication of dis%#tes bet!een em%loers and !or"men* and litigation over 1s#bsistence allo!ance2 is b no means #ncommon* not onl for tactical reasons* b#t also beca#se it is often the onl means of s#rvival for an em%loee facing disci%linar %roceedings. (n this conte't* a single 4#dge of the $omba High 7o#rt has advanced an interesting %ro%osition of la!* in a caref#l 4#dgment delivered a fe! !ee"s ago in !um#ai Cri$ket %sso$iation v &hinde1'. Mr. Shinde had been em%loed as a t%ist b the M7&* and !as chargesheeted #nder the Model Standing Orders for acce%ting an illegal gratification. ?ollo!ing an in#ir* the charges !ere fo#nd %roved* and he !as dismissed on 35 November* 3883. Mr. Shinde so#ght and obtained a reference from the a%%ro%riate ;overnment* and challenged his dismissal before the Labo#r 7o#rt. &s is !ell "no!n* the dis%#te resol#tion mechanism in s. +8 of the +Bhtt%:AA,eene!s.india.comAne!sAnationAscCdirectiveConCs#bsistenceCallo!anceCtoCs#s%endedC staff08+68+.html +9 htt%:AAindiacor%la!.blogs%ot.inA38++A83As#bsistenceCallo!anceCd#ring.html
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(@& is activated only #%on a reference b the a%%ro%riate ;overnment. The Labo#r 7o#rt fo#nd that the in#ir !as 1%erverse2 b#t gave the em%loer an o%%ort#nit to %rove the charges in co#rt b add#cing evidence. &gain* this %ractice is !idel follo!ed in ind#strial ad4#dication to avoid #nnecessar dela in remitting the case bac" for an in#ir* follo!ing !hich there is inevitabl another reference to the 7o#rt on the same facts. &t this stage* Mr. Shinde so#ght an order for 1s#bsistence allo!ance2 in accordance !ith s. +8& of the (nd#strial Em%loment -Standing Orders &ct +9/0 D1(ESO2* !hich %rovides that an em%loer is obliged to %a the em%loee a s%ecified %ercentage of his !ages d#ring his s#s%ension and pending the res#lt of the in#ir38. The obvio#s diffic#lt Mr. Shinde faced !as that the order of the Labo#r 7o#rt %ermitting the em%loer to %rove the charges !as technicall not an 1in#ir2 and he co#ld not be said have been 1s#s%ended2* since the order of dismissal had not formall been set aside. Nevertheless* the Labo#r 7o#rt too" the vie! that this !as a"in to an in#ir* that 1e#it2 demanded the %ament of s#bsistence allo!ance and so ordered. The #estion of la! before the single 4#dge !as !hether this is a correct constr#ction of the (@& and the (ES&. (t is convenient to begin b setting o#t the o%erative %art of s. +8& (ES&: +8C&. >ament of s#bsistence allo!ance.C-+ )here an !or"man is suspended b the em%loer %ending investigation or in#ir into com%laints or charges of miscond#ct against him* the em%loer shall %a to s#ch !or"man s#bsistence allo!ance @harmadhi"ari I.* for t!o reasons* held that this %rovision is irrelevant in circ#mstances !here the Labo#r co#rt directs the em%loer to %rove the charges of a 1%erverse2 in#ir in co#rt. (irst * there is a#thorit for the %ro%osition that the order of dismissal is not set aside b the direction of the Labo#r co#rt to add#ce fresh evidence indeed* if the Labo#r co#rt affirms the dismissal on a%%reciating evidence* the order 1relates bac"2 to the date of dismissal. (f this is tr#e* it m#st inevitabl follo! that s. +8& is #navailable* beca#se the !or"man cannot on an vie! be 1s#s%ended2 !hen his 1dismissal2 order is effective* albeit in abeance. To s#%%ort this %ro%osition* @harmadhi"ari I. t#rned to the decision in )ngineering *aghu v *a#our Court 21* !here the S#%reme 7o#rt had held that the dismissal 38 (bid. 3+ &.(.R. 388/ S.7. /95+.
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order remains valid 1until it is set aside2 and therefore* if confirmed* m#st be given effect not from the date of the 4#dgment* b#t from the date of the %assing of the dismissal order. (t !as arg#ed in that case that there is a distinction at an rate bet!een cases !here an em%loee is dismissed +ithout an in#ir* and those !here dismissal follo!s an in#ir that is fo#nd to be defective. The contention !as that the dismissal is 1void2 in the first case* and therefore ta"es effect onl from the date of 4#dgment. Jrishna (er I. had acce%ted this vie! b#t !as overr#led in )ngineering *aghu* beca#se of settled a#thorit that the doctrine of relating bac" a%%lies in both cases. @harmadhi"ari I. therefore rightl observed that: The order of dismissal remains and is not set aside. (f #%held b the 7o#rt* it !ill be after the order of the 7o#rt in that behalf. Ho!ever* it relates bac" to the date of %#nishment. (f !hat is %ost%oned is its coming into effect or o%eration* then* the arg#ment of Mr. >atha" that it is held in abeance m#st be straight!a re4ected. His arg#ment !o#ld render doctrine of relation bac" com%letel n#gator. The second reason is as com%elling even on the ass#m%tion that the em%loee ma be said to be 1s#s%ended2 for the %#r%oses of s. +8&* it m#st still be established that he is s#s%ended 1 pending investigation or in,uiry into $omplaints or $harges o- mis$ondu$t2 The fact that the Labo#r 7o#rt* !hen no in#ir has been cond#cted* is entitled to hear all the evidence and ma"e findings of fact and la!* cannot elide an 1in#ir or investigation2 and an adjudi$ation. &s @harmadhi"ari I. noted* The em%loee so#ght a reference from the &%%ro%riate ;overnment and that is ho! the matter of his dismissal is referred to the Labo#r 7o#rt and that is ho! the 7o#rt is sei,ed of the matter. The 7o#rt cannot be e#ated !ith an em%loer as it is onl %erforming a 4#dicial f#nction of giving an o%%ort#nit to the %etitioner to add#ce evidence to %rove charges of miscond#ct before it* and that is beca#se the la! %ost#lates s#ch an o%%ort#nit. The la! does not e#ate this sit#ation !ith s#s%ension b the em%loer %ending domestic en#ir or investigation into an com%laints Dem%hasis mine. The final arg#ment advanced !as that the 7o#rt is nevertheless entitled to a!ard s#bsistence allo!ance as a matter of 14#stice* e#it and good conscience2 bearing in mind the im%ec#nio#s condition of the em%loee and his stated inabilit to s#stain himself d#ring the
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%endenc of the %roceedings. @harmadhi"ari I. em%haticall re4ected this contention* observing that the Labo#r co#rt is not em%o!ered to grant s#bsistence allo!ance 1on spe$ious grounds o- e,uity and justi$e*2 and that !rit 4#risdiction #nder &rt. 330 of the 7onstit#tion cannot be e'ercised 1contrar to la!2. 1/ltimately0 e,uity and justi$e re,uire that legal prin$iples are adhered to and not given a go#y $ompletely .2 There !as some do#bt over !hether this !as contrar to the decision of a @ivision $ench of the $omba High 7o#rt in %ir ndia* b#t @harmadhi"ari I. held that it !as not* beca#se that case !as decided #nder s. 66 (@&* not s. +8. Since* ho!ever* the observations of the @ivision $ench !ere broad in that case* it remains to be seen !hether the single 4#dges vie! !ill be affirmed33. (n s#m* it is s#bmitted that @harmadhi"ari I.s concl#sion is %lainl correct as a matter of stat#tor inter%retation indeed* it !o#ld be odd to acce%t the %ro%osition that a dismissed em%loee is also a 1s#s%ended2 em%loee* and that ad4#dication of the legalit of dismissal is in fact an 1investigation or in#ir2 to ascertain !hether dismissal is a%%ro%riate. That does not* of co#rse* mean that this is a desirable state of affairs* b#t if the vie! is ta"en that the benefit of s#bsistence allo!ance m#st e'tend to confirmator %roceedings in the Labo#r 7o#rt* that is %erha%s best left to the legislat#re.
CONCLUSION & s#bsistence allo!ance is intended to cover the e'%enses inc#rred b an inter%reter !or"ing a!a from hisAher %rofessional address. (t ma consist of a flatCrate amo#nt %aid %er da or ma involve an arrangement !hereb the conference organiser %as all or %art of the inter%reterKs accommodation and board. (n the agreement sector* these allo!ances are governed b the relevant agreement. (n the %rivate mar"et sector* the are negotiated bet!een the inter%reter and the client. )or"man !ho is %laced #nder s#s%ension shall d#ring the %eriod of s#ch s#s%ension be %aid a s#bsistence allo!ance at the follo!ing rates namel 36. ?or the first ninet das of the s#s%ension %eriod s#bsistence allo!ance to be %aid %er month shall be e#al to oneChalf of basic !ages* dearness allo!ance and other com%ensator allo!ances. (f the en#ir gets %rolonged and the !or"man contin#es to be #nder s#s%ension for a %eriod e'ceeding ninet das* the s#bsistence allo!ance to be %aid %er month for a f#rther %eriod of ninet das shall be e#al to three fo#rths of s#ch basic !ages* dearness allo!ance and other com%ensator allo!ances. 33 Tata 7hemicals Ltd. <. J.7. &chara* &.(.R. +90/ ;#4. 305. 36 Sri ;o%al Mills Ltd. <. State of >#n4ab* -+959 ( ll4 069.
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(f the en#ir is not com%leted !ithin a %eriod for +B8 das* the !or"man shall be %aid basic !ages* dearness allo!ance and com%ensator allo!ance in f#ll as s#bsistence allo!ance to be %aid %er month #ntil s#ch time as the in#ir is finall concl#ded. >rovided that* !here the findings of the (n#ir Officer sho! that s#ch en#ir is %rolonged beond a %eriod of 98 das* or as the case ma be +B8 das for reasons directl attrib#table to the !or"man* s#bsistence allo!ance to be %aid %er months shall for the %eriod e'ceeding 98 das or as the case ma be +B8 das* shall be red#ced to one half of s#ch basic !ages* dearness allo!ance and other com%ensator allo!ance. The age for retirement or s#%erann#ation of the !or"man ma be si't ears or s#ch other age as ma be agreed #%on bet!een the em%loer and the !or"man b an agreement* settlement or a!ard !hich ma be binding on the em%loer and the !or"men #nder an la! for the time being in force 3/.
BIBLIOGRA?HY BOOKS
+. S.N . Mishra *labo#r and ind#strial la!s*36rd ed.*388*central la! agenc*&llahabad 3. <.; ;os!ami*Labo#r and ind#strial la!s* B th ed.*388/*honKble 4#stice Mahavir singh 7entral la! agenc &llahabad. 6. 7ases and %#blication * Labo#r P (nd#strial la!s*6 rd ed. (ndian la! instit#te * Ne! @elhi. /. .)or"mens 7om%ensation &ct Some Reflections*$inod J#mar >atro* 7hittaran4an $ehera* Ramesh J. Sharma*
ARTICLES:4
3/ 7.S. 7or%n.v. Ramratan Mahato* &.(.R. +96 7al. 35B.
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+. Wor@ In&ur; Co0-'n)ton )nd t=' Dur)ton o( Non5or@ S-' *The )$onomi$ 3ournal *
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