Was the suspension was done after the proper enquiry as a punishment? If suspension is as a part of punishment, then employee is not eligible for regular wages. This period is no work no pay basis and hence no payment and no deduction for those days...
However if this is before enquiry (suspension pending enquiry), you need to pay subsistence allowance as per the Model Standing Orders...
If charges are not proved and the employee is taken back, then he will become eligible to get salary and that salary will be counted for bonus calculation and the suspension days will automatically become days worked. On the other hand, if charges are proved and he is discharged from service, the suspension period will remain as days not worked and also the subsistence allowance paid will be adjusted against terminal benefits and that will not any way attract bonus.
You have not mentioned the cause of suspension. Suspension should be based on the findings of the enquiry officer who conduct the domestic enquiry. If the suspension is awarded and his charges are proved and then he will not be eligible for anything and the suspension period should be treated as authorized absence and does not entitled for any wages/salary for that period and statutory deductions does not arise at all. You can prepare his salary sheet by excluding the suspension period on regular pay roll.
Sr.Executive (Pers, Admin and Ind.Rels) Rtd
Labour Laws Consultant
As my learned friends Madhu and Suguresh explained, suspension is of two types - one is suspension pending enquiry entitling the suspended employee for subsistence allowance for the entire period of suspension at the rates fixed in the Standing Orders or under any special Law in force for the purpose and any deviation or non-compliance without valid reasons on the part of the employer would render the entire enquiry proceedings vitiated and the other is punitive suspension for which no subsistence allowance nor wages or salary need be paid. As the very names suggest, suspension pending enquiry is before the end of disciplinery proceedings culminating in punishment or exoneration of the charges of misconduct and punitive suspension is the result of the disciplinery proceedings. In the case of suspension pending enquiry, the award of punishment of any other nature ( at times the period of suspension undergone or a portion of which may be converted as punishment) makes it obligatory on the part of the employer to regularize the period of suspension failing which it would tantamount to double punishment. Automatically, therefore, suspension pending enquiry will count for gratuity. Whereas, the period of punitive suspension would be a non-qualifying period of service for gratuity.
I would just like to draw your kind attention that the suspension by way of punishment according to IE(SO) Act is not more than 4 days. Apperently this is not stated by anyone here.
More days suspension can be provided in certified SO. I recollect some one telling me that you can provide the suspension up to 10 days. Can some body through light on it?
Thank you very much for your spontaneous response. This forum always get informative and valuable inputs from you.
Central rules, Maharashtra rules and many other states has a privision of suspension by not more than 4 days. This is just for information. Thanks again.
Since you are from the HRD, I refrain from elaborating the contract of employment between the employer and his employees. During the period of suspension whether it is suspension pending enquiry or punitive, the contract of employment continues just in a state of suspended animation. In other words, suspension is a temporary debarment of the employee from attending his duties as fixed earlier in the contract of employment. However, he should not accept employment from any other employer nor he should engage himself in any gainful employment during the entire period of his suspension. If so mentioned by the employer, he /she should not leave the head quarter without the prior permission of the employer.
Therefore, during the period of suspension, the employee need not present himself /herself at the place of his /her work.
I am afraid that your query is incomplete. Strictly, on revocation of suspension, the concerned employee should present himself for duty without fail. After rejoining, he can immediately proceed on leave subject to the approval of the employer depending on the type of leave as well as the number of days. On the contrary, if does not rejoin after receipt of the orders of revocation and simply applies for leave, in my opinion, his suspension still continues.