Suspension

What is Suspension ?

Suspension in HR and employment law is a term used to mean the temporary withdrawal of an employee of active duties and responsibilities in the organization. It is not an end of employment but an employment disciplinary or precautionary action of the employer. The suspension places the employee on the payroll with a possibility of earning a fraction of his salary as mandated by the company rules or as allowed by law.

History and origin

The suspension concept in employment law is quite old, and relates to the early 19th and 20th-century practice of industrial relations, where employers had to have formal means to address misconduct, pending inquiries, or disputes. The concept was based on the military and administrative systems where the suspension is applied as precaution during investigations.

Suspension, as a workplace practice in India, is enshrined in labour law and standing orders (in particular the Industrial Employment (Standing Orders) Act, 1946). It developed as a mechanism of balancing the rights of the employer to discipline against the rights of employees to due process. Rather than automatic termination, suspension can be used to carry out investigations, even though the employer-employee relationship will be maintained.

Key Features of Suspension

Temporary Measure - Suspension is a temporary suspension that is issued pending the investigation or a solution of a problem.

Not a Dismissal - The employee has not been dismissed, only relieved of his job temporarily.

Legal Support - Entailed in company policies, standing orders, and the relevant labor laws.

Reason-Based - Tend to be applied when there are allegations of misconduct, a violation of company policy or inquiry is imminent.

Subsistence Allowance - Suspended employees have a right to a low salary (usually 50 per cent of salary at first, subject to regulations) to keep food on the table.

Types of Suspension

Disciplinary Suspension - To alleged misconduct or breach of the workplace rules.

Preventive Suspension - To avoid interference to the investigation or question.

Punitive Suspension - This is a punishment imposed as a result of an established wrongdoing (but is commonly combined with other disciplinary measures).

Administrative Suspension- To address circumstances such as redundancy in roles, pending clearance or restructuring.

Objectives of Suspension

To achieve objective and blameless investigation.

To ensure organizational integrity and to contain additional violations.

In order to sustain workplace discipline.

To put a warning against misbehavior to the employees.

Legal and HR Considerations

Due Process: Due process should be withheld to prevent any legal tussle through suspension, which must be duly noticed and documented.

Time Limit: Suspension that has not been resolved in the long run can be illegal or unfair.

Employee Rights: The reasons and time period of suspension are to be informed to the employees.

Compliance: Is to be in accordance with laws of statutory labor and company regulations.

Suspension vs. Termination

Suspension: it is a temporary halt of an employee’s work duties where the employment relationship is not ended. During suspension, the employee remains on the rolls of the organisation but is not allowed to perform duties. 

It is usually applied as a corrective or disciplinary measure, pending investigation of misconduct or other issues. 

Termination: it is the permanent end of an employee’s contract of employment with the organisation. It may occur due to disciplinary action, poor performance, redundancy, or voluntary resignation. 

Once terminated, the employee is no longer associated with the company.

Suspension vs. Termination: Comparison Table

The suspension is used as a corrective measure and termination is the last resort after due process.

The significance of Suspension in HR

Practices discipline in an organization.

Adopts fairness in dealing with misconducts of employees.

Eliminates reputational and legal risks to the company.

Weighs the rights of the employees with the interest of the organization.

Pro Tip
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• Track case progress, investigation deadlines, and documentation in one place.

FAQs

1. What is Suspension?
   Suspension is a temporary removal of an employee from work duties, usually while an investigation or disciplinary process is ongoing. It does not mean the end of employment.
2. Is Suspension equal to being fired?
   No. Suspension is temporary, whereas being fired or terminated is permanent. A suspended employee remains employed but is not actively working.
3. Can a suspended employee be terminated?
   Yes. If an investigation proves misconduct or violation of company policy, suspension may be followed by termination. However, termination must follow due process.
4. What is the maximum period of suspension?
   There is no universal limit but suspension is generally up to 90 days at a time, after which it must be reviewed. The period depends on company policy and labor laws, but suspension should not be unnecessarily prolonged. Courts often view indefinite suspensions as unfair.
5. Can I resign if I am suspended?
   Yes. An employee can submit a resignation during suspension, but acceptance of resignation is at the employer’s discretion, especially if disciplinary proceedings are ongoing.
6. Does the employer need to show the reason for suspension?
   Yes. Employers are generally required to inform employees of the reason for suspension, either in writing or through an official notice.
7. Do we get salary after suspension?
   Employees under suspension usually receive a subsistence allowance (often around 50% of salary), as per labor laws or company policy, instead of the full salary.
8. What is the purpose of a suspension?
   Suspension helps ensure a fair investigation, prevents interference with evidence, and maintains workplace discipline during inquiry proceedings.
9. Does suspension mean banned?
   No. Suspension is not the same as a ban. It is a temporary measure within an employment relationship, not a permanent restriction.
10. What happens after being suspended?
    After suspension, an investigation or inquiry is conducted. Based on the outcome, the employee may be reinstated, receive a warning, face disciplinary action, or be terminated.
11. How long can suspension last?
    The duration varies depending on the complexity of the case. Ideally, suspension should last only until the investigation is completed and a decision is made.