Section 38: Time limit for completing disciplinary proceedings and liability to pay subsistence allowance
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 38 — Governs time limit for completing disciplinary proceedings and liability to pay subsistence allowance and the rights, duties, powers or procedure expressly stated in this section. Key operative 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,…
All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (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…
- (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…
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance.—(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…
- (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…
Actors expressly appearing in the text
Employer, Worker
Full statutory text — Section 38
38. Time-limit for completing disciplinary proceedings and liability to pay subsistence
allowance.—(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.How to apply this provision
- Primary statutory test — (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.
- Additional operative limb — (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…
- Numerical or timing control — Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance.—(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…
- Evidence file — retain facts and records proving the role/status of: Employer, Worker.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
Suppose an industrial establishment reaches a step governed by time limit for completing disciplinary proceedings and liability to pay subsistence allowance. HR/IR should create a dated file showing coverage, the competent authority/union status, required notice or application, service proof and the result. One operative text point to test is: “Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance.—(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”
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 38
What does Section 38 of the Industrial Relations Code cover?
Section 38 — Governs time limit for completing disciplinary proceedings and liability to pay subsistence allowance and the rights, duties, powers or procedure expressly stated in this section. Key operative 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,…
What is the main legal requirement or power in Section 38?
The first operative clause identified from the official text is: “(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.” Read it with the remaining subsections and any proviso below.
Does Section 38 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 38?
The provision contains this numerical/time expression: “Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance.—(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…” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 38?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 38 currently operative?
All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.
Source & verification trail
Act: Industrial Relations Code, 2020 — official India Code PDF ↗
Central Rules: Industrial Relations (Central) Rules, 2026 — G.S.R. 342(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.