AIBOC CIRCULAR NO. 105 DATED 24.07.2010

AIBOC issued its circular No. 105 on payment of subsistence allowance to Officers kept under suspension. We are reproducing the same here for our readers.

CIRCULAR NO: 105                             DATE: 24.07.2010

TO ALL AFFILIATES/MEMBERS:

OFFICERS KEPT UNDER SUSPENSION PENDING DEPARTMETNAL ENQUIRY - PAYMENT OF SUBSISTENCE ALLOWANCE

We have addressed a letter to IBA to release the subsistence allowance to officers on the same pattern as in case of workmen and also extend the benefit of salary revision or increase in salary etc., during the period of suspension.

We enclose a copy of our communication for your information.  We shall advise the outcome in due course.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No. /1452/220/10                                  22nd July, 2010

To,

The Chairmen.

Indian Bank  Association

World Trade Centre  Complex,

Centre 1, 6^th Floor, Cuffe parade,

Mumbai- 400 005

Dear Sir,

OFFICERS KEPT UNDER SUSPENSION: PENDING DEPARTMENTAL ENQUIRY

The Management may suspend an officer employee against whom disciplinary action is contemplated or enquiry is pending. The employer has to exercise this power when grave charges of misconduct such as serious act of omission or commission are alleged against the officer employee.  Under such circumstances the Management resorts to such steps to keep the officer employee out of mischief’s range or to deny the officer employee to have access to materials, records, evidence which have a bearing on the gamut of charges leveled against the officers.

But, of late we have been observing that the Managements are not exercising this power with due caution and care and application of mind. Officers are suspended without making a fair and proper assessment of the matter in the given circumstances, without carefully scrutinizing that prima facie there exist grave and compelling circumstances which in the light of material available and collected during the preliminary investigation, lead to likely removal of the employee from service of the bank. In most of the cases the officer employees are suspended from the service of the bank as a punitive action; though it is not penalty technically, causing great hardship, harassment, mental agony to the concerned.

The suspended officers are eligible for payment of subsistence allowance during the period of suspension.  But, no uniform policy is followed as regards rate of the subsistence allowance.  In case of workmen the managements have been considering the following:-

• 50% of the Salary & Allowances for the first six months.
• 75% of the Salary/Allowances for the next six months.
• 100% of the Salary/allowances will be restored after completing one year i.e. full wages.

If there is any revision, increase in the salary, the revision or increase will be extended to the employee proportionately.

If an anniversary increment is due during the period of suspension, the same will be granted to the workmen.

In respect of officer employees the subsistence allowance is restricted to 50% of the salary, allowances etc., at the time of imposing the suspension. The suspended officers are denied the other benefits available to the workmen, thus causing him hardship and harassment.

Moreover, the officer employees are not given the benefits of salary revision or increase in pay scales during the period of suspension.  This we feel is against the principles of natural justice and putting the officers in a totally disadvantageous position vis-à-vis the workmen.  This amounts to punitive action, which in effect will be punishment to the suspended officer-employee.

In this background, we have a strong feeling that the rules for keeping the officer employees under suspension need a review and we request you to take note of our following suggestions and consider the same positively.

• Restore the salary and allowances on the same line as in the case of workmen
• Extend the benefits of salary revision increase, increments on the anniversary date falling during the period of suspension.
• Steps should be initiated for completing the enquiry within the shortest possible time frame.

We, therefore request you to arrange for a meeting to deliberate on the above vexatious issue and enable us to present our views on the issue.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF0

GENERAL SECRETARY