Step 1: Understanding the Concept:
The Industrial Employment (Standing Orders) Act, 1946, requires employers in industrial establishments to formally define the conditions of employment. Subsistence allowance is a payment made to a suspended employee to sustain themselves during the period of suspension pending inquiry.
Step 2: Detailed Explanation:
The provision for payment of subsistence allowance was not originally part of the 1946 Act.
It was introduced by the Industrial Employment (Standing Orders) Amendment Act, 1982.
This amendment inserted Section 10-A into the Act.
Section 10-A mandates the payment of subsistence allowance to a workman who is suspended, pending investigation or inquiry into misconduct.
The rates prescribed are:
- 50% of the wages for the first 90 days of suspension.
- 75% of the wages for the remaining period of suspension if the delay in completion of disciplinary proceedings is not attributable to the workman.