Contents of the Industrial Relations Code

The Industrial Relations Code, 2020

Section 38. Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance

In force since 21 Nov 2025Chapter IV — Standing Orders

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In simple words

  • When a worker is suspended pending an investigation or inquiry into misconduct, it should ordinarily be completed within ninety days of the suspension s. 38(1).
  • Subsistence allowance is paid at fifty per cent of the worker’s wages for the first ninety days of suspension s. 38(3)(a).
  • For the rest of the suspension it is seventy-five per cent, unless the delay is directly attributable to the worker’s conduct s. 38(3)(b). See the standing orders guide.

An explanation, not the law. The official text below prevails.

Official text

(1) Where any worker is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, such investigation or inquiry, or where there is an investigation followed by an inquiry, both the investigation and inquiry shall be completed ordinarily within a period of ninety days from the date of suspension.

(2) The standing orders certified under sub-section (8) of section 30 or modified under section 35 shall provide that where a worker is suspended as referred to in sub-section (1), the employer in relation to an industrial establishment or undertaking shall pay to such worker employed in such industrial establishment or undertaking subsistence allowance at the rates specified in sub-section (3) for the period during which such worker is placed under suspension pending investigation or inquiry into complaints or charges of misconduct against such worker.

(3) The amount of subsistence allowance payable under sub-section (2) shall be—

(a) at the rate of fifty per cent. of the wages which the worker was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and

(b) at the rate of seventy-five per cent. of such wages for the remaining period of suspension, if the delay in the completion of disciplinary proceedings against such worker is not directly attributable to the conduct of such worker.

Source: The Industrial Relations Code, 2020, Act No. 35 of 2020 — Gazette of India, p. 20 of the PDF. Open our copy at p. 20 · official download · all sources

Explained simply in: Standing orders guide

Commencement In force since 21 Nov 2025

Notification wording (1)
  • S.O. 5320(E), in force from 21 Nov 2025: “the Central Government hereby appoints the 21st day of November, 2025 as the date on which the provisions of the said Code, shall come into force”