Case Note & Summary
The petitioner, M/s. Hindustan Level Employees Union, challenged an Award dated 13.08.2014 which rejected a Reference concerning denial of subsistence allowance to a suspended employee by the respondent, M/s. Hindustan Unilever Limited. The employee was suspended pending disciplinary proceedings, and the company denied subsistence allowance on the ground that the employee did not attend the factory premises daily to mark attendance in the muster register. The Industrial Tribunal upheld the denial, holding it justified. The Union argued that there is no legal requirement for a suspended employee to physically attend the factory to receive subsistence allowance. The High Court, while permitting an amendment to include Article 227, noted that the petition raises an important point of law regarding the conditions for payment of subsistence allowance during suspension. The court observed that the requirement to mark attendance is not a precondition under the Industrial Employment (Standing Orders) Act, 1946 or Model Standing Orders. The judgment is reserved and pronounced on 03.01.2024, with the court allowing the amendment and setting aside the Award, directing payment of subsistence allowance.
Headnote
A) Industrial Law - Subsistence Allowance - Suspension - Attendance Requirement - Industrial Employment (Standing Orders) Act, 1946, Model Standing Orders - The court considered whether a suspended employee must attend factory premises daily and sign muster to be eligible for subsistence allowance. Held that there is no legal requirement for a suspended employee to mark physical attendance; subsistence allowance is payable irrespective of such attendance. (Paras 2-3)
Issue of Consideration
Whether a suspended employee can be denied subsistence allowance for failing to mark physical attendance at the factory gate during suspension.
Final Decision
The court allowed the amendment to include Article 227, set aside the Award dated 13.08.2014, and directed the respondent to pay subsistence allowance to the suspended employee in accordance with law.
Law Points
- Subsistence allowance
- suspension
- attendance requirement
- muster
- Industrial Employment (Standing Orders) Act
- 1946
- Model Standing Orders
Case Details
2024 LawText (BOM) (01) 214
WRIT PETITION NO. 8562 OF 2015
Ms. Jane Cox, Mr. Jignesha Pandya, Mr. Bennet D’Costa, Ms. Supriya Mujumdar, Melvyn Fernandes
M/s. Hindustan Level Employees Union
M/s. Hindustan Unilever Limited
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Nature of Litigation
Writ Petition challenging an Industrial Award rejecting a Reference for subsistence allowance.
Remedy Sought
Petitioner sought to quash the Award and direct payment of subsistence allowance to the suspended employee.
Filing Reason
Denial of subsistence allowance to a suspended employee for failure to mark daily attendance at factory gate.
Previous Decisions
Industrial Tribunal Award dated 13.08.2014 rejected the Reference, holding denial of subsistence allowance justified.
Issues
Whether a suspended employee is required to attend factory premises daily and sign muster to be eligible for subsistence allowance.
Submissions/Arguments
Petitioner argued that there is no legal requirement for a suspended employee to mark physical attendance as a precondition for subsistence allowance.
Respondent contended that the employee failed to attend and sign muster, justifying denial of subsistence allowance.
Ratio Decidendi
A suspended employee is not required to attend the factory premises daily and sign the muster register as a precondition for receiving subsistence allowance; such a requirement is not supported by the Industrial Employment (Standing Orders) Act, 1946 or Model Standing Orders.
Judgment Excerpts
Petition raises an important point of law.
Award has held that denial of subsistence allowance is not contrary to law and justified, since the employee did not attend the factory everyday and sign the muster / register provided therefor.
According to Petitioner, it is not a requirement under the law requiring and/or to call upon a suspended employee to mark his physical attendance and sign the muster everyday at the factory gate as a pre-requisite for being paid subsistence allowance.
Procedural History
The Industrial Tribunal passed an Award on 13.08.2014 rejecting the Reference. The Union filed Writ Petition No. 8562 of 2015 before the Bombay High Court challenging the Award. The court reserved judgment on 12.12.2023 and pronounced on 03.01.2024.
Acts & Sections
- Industrial Employment (Standing Orders) Act, 1946:
- Constitution of India: Article 226, Article 227
