Well I'm not always consistent with what I do with them, but for the most part I just don't even want them around. They are a serious liability. They panic and run away when morale slides and steady hands are most needed. They go berserk and kill the valuable, brave ones who are NOT throw-aways. Yeah I don't feel badly when they get killed, but when they get OTHERS killed... That's why I generally immediately fire anyone with less than 30 bravery - and the ones with 30 bravery are still not very trustworthy.
Low morale troopers on the front lines and always out line of the good troopers =3
They make good spotters, if you go for the very popular "spot and snipe" tactic...
Spotters run draw reaction fire and you're good morale snipers pick the aliens off. And if your sniper fail to kill one or two aliens, the low morale troopers can have a go at it.
I paid 40 grant for them, dammit! Any use is better then no use...
So no armour, first ones out the Skyranger, on the front, being meat shields and always out of sight of the good troops.