V MOHANA Vs. DEPUTY COMMISSIONER OF LABOUR

JUDGEMENT

(1.) The petitioners, who are daily rated employees in the third respondent-mill, were placed under suspension pending disciplinary action with effect from 30.10.94. As per the provisions of the Tamil Nadu Payment of Subsistence Allowance Act, 1981 (hereinafter referred to as "the Act"), during the period of suspension, they were entitled to receive from the employer as subsistence allowance, the payment equal to 50% of wages, which the employee was drawing immediately before suspension for the first ninety days reckoned from the date of such suspension and @ 75% after the said ninety days i.e. for the next 180 days and after the expiry of next 180 days, it should be @ full wages.

(2.) The third proviso to section 3(1) of the Act however reiterates that if enquiry or criminal proceedings are prolonged beyond the period of ninety days for reasons directly attributable to the employee, the subsistence allowance for the period exceeding ninety days shall be reduced to 50%, which the employee was drawing immediately before his suspension. I am not concerned with the said proviso.

(3.) In the case on hand, the grievance of the petitioners was that the third respondent failed to pay the required subsistence allowance by taking the stand that the petitioners being daily rated employees, were not entitled for the payment of subsistence allowance for the weekly holidays and festival holidays and also during the period of strike.