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Dear Senior's,
If an employee who is not working well and the employer wants to suspend him for one week so can employer suspend him or not? If employer suspend him and employee has a balance leave so at the time of salary preparation can we adjust their leave against suspension period AND If we demote to an employee so can we decrease their salary or not? Please reply..........
Thanks & Regard's
Nitin Sharma
24th June 2015 From India, Delhi
What do you mean by saying employee not working well?
Is he a poor worker or intentionally showing poor work output.
Suspension is basically disciplinary in nature and cannot be invoked for incapability in work.
He can be sent for additional training.
Demoting an employee,reducing salary can be done by following due procedure of law-certified standing order etc.
Basic principle for demotion:Every arbitrary demotion is illegal if made without giving any opportunity to the employee to defend his cause.
One has to equally understand impact of demotion on employee and negative effects to individual and organisation also.
So deal with such cases after deep and careful thought in all angles.
24th June 2015 From India, Pune
Hi Nitin,

Suspension & forced leave are two different things...

Suspension can be used against a misconduct, violation or breach of policies, only when other means of counseling statements have been exhausted. Immediate suspension can also be possible, when the misconduct results in loss of trust, or any further damage is anticipated. Suspension is generally "unpaid" & followed by an domestic or legal enquiry. Suspension on full pay can also be used when an employee needs to be removed from the workplace to avoid prejudicing an investigation. This is used not as a punishment, but in the employer's best interest.

If you want to compensate the suspension against the earned leave days, then it is 'forced leave'. This is an adjustment accepted by employee, as the suspension is not shown on his record, as well organization is clean since the leave application is made to be filled up by employee. Such leaves are useful, when there is no real work available to the employee & company has no other choice than to 'lay off' employees.

With neither action, the "efficiency" of the employee would show any upgrade after the suspension. His priorities & dedication towards job may increase, but not his productivity & work accuracy. At the same time, his interest in the job may diminish with this suspension. You need to first find out on which aspect the employee is really lacking. Also think if you can motivate him further by inducting trainings or suggesting different opportunities to show good performance (May be change of department?).

If after all, the employee is really an underperformer, then why don't you just ask him to leave? May be this is not the suitable job for him, or he is not the suitable candidate for your organization...

Demotion with salary decrease is not a good move for company as well as for the employee. Demotion just increases dissatisfaction at both levels.... Alternative is to let the person go & hire someone with less salary at the junior level. Here issue is not only the employee performance, but the promotion policy of the company in the first place.

Best Regards,

Amod Bobade.
25th June 2015
Thank you so much Nath Rao Sir & Amod Sir for your great reply but by mistake I have written here the employee not working well. Actually an employee does not come on duty time so my boss decided that we should give him a suspension letter.
25th June 2015 From India, Delhi
Not coming on duty time is a breach of discipline.
Is he a frequent late comer?
Has he been warned earlier?
You just cannot suspend a person coming late first time or even infrequently,without following earlier warning and counselling procedures.
This is supposed to be how a good employer treats staff.
But then we have employers waiting for least chance to remove/suspend employees also.
Basically a sense of fairness and justice should be the cornerstone of any action.
25th June 2015 From India, Pune
Not only we have warned him so many times but also deducting their salary. Even after that she’s coming late. She doesn’t care about their salary.
25th June 2015 From India, Delhi
Then based on evidence of repeated late coming and warnings,salary deductions, take suitable action against employee.
25th June 2015 From India, Pune
You have to mention in the suspension letter that you won't be paid during the period of suspension . Suspension is a punishment if you one can avail leaves during suspension period then suspension will become meaningless .
We discourage demotion yes you can promote someone one on that position or hire some one else but you cannot decrease the salary of that employee its not good for empployee motivation/morale as well as not good for the company as well .
26th June 2015 From Pakistan, Karachi
Hi Nitin,

Is the employee a 'He' or a 'She'. Not that this matters, but your responses give mixed indications.

Anyway, 'she' may show that she doesn't care about salary, but actually everyone does. A delayed promotion/increment (or demotion in this case) (as compared to other peers getting these perks) always affects a person.... She may show that for one or two instances it did not affect her, but in long run she will surely feel it. Try to have candid discussion with her & understand her concerns. Also give clear indications of these long term effects on her career with this background.

If you want to make it an example to highlight your office punctuality rules, then surely suspension is one of the suitable disciplinary action; Though, the effectiveness of it 'for this employee' might not be as you expect.

It does not take time to multiply such behavior amongst employees starting from one isolated case. But punishment does not necessarily stop it. You have to work towards modifying the office culture where coming late does not even come to the mind of employees.

As I said before, if this is just one employee creating bad environment in otherwise good office culture, then it will be better to let her go than trying to rectify her.

On other thought, a few follow-up questions:

1. Does she also stay back in office & work till late?

2. Is her work effective & does the late coming affect her productivity? Except for this one concern, how is her overall performance?

3. Even though she does not care for the salary, does she really care for her assignments & the company welfare?

4. Is she being given less work so she feels her presence in office full time is not necessary? Have you tried increasing her workload? May be give some additional extra-curricular responsibility like internal trainings?

5. What is her relative position in the organization? What is the strength of her department? Have you tried to collect 360 degree feedback for her?

6. What is her job profile physical or mental efforts work?

7. What is the general attendance record & punctuality in the workplace otherwise?

8. Do you have union / work associations in the workplace? What is the job security in your organization?

Answers to these questions would also affect the possibility/effectiveness of suspension as disciplinary action.

This might not be the scenario, but sometimes such cases are indications that the company policies need to upgrade to next level (Like +/- 1hour flexible office timing for everyone).

Best Regards,

Amod Bobade.
26th June 2015
Hello Nitin Sharma,
Suggest your 'gender' right--is it 'he' OR 'she'?
Amod Bobade has given you a perfect checklist to figure-out the reason(s) why the employee is a regular latecomer.
UNLESS you ascertain the reason(s), how can you decide what action to take?
However, I am not sure on YOUR reason(s) for deciding that 'suspension' COULD be the right choice. What are you trying to achieve?
Your line "She doesn’t care about their salary" doesn't look realistic--UNLESS she is well-off & doing a job just for 'time-pass'. In which case, termination COULD be a better action than suspending--after following the due procedures.
27th June 2015 From India, Hyderabad
Your intentions are understood that a 'habitual late comer' has to be punished for the 'indiscipline' with a punishment of 'suspension' If so first thing is to check your Standing order or Conduct and Discipline Rule applicable to such kind of personnel and find what it says about such cases and how to handle it. If there is no such a SO or a Rule in vogue in your Estt. it would be prudent to bring-in operation properly draft Rules in your HR policy. Then the SO or Rule itself will tell you what to do. Generally any indiscipline should be dealt with by giving enough opportunity to the accused to defend them against charges to be framed on the alleged indiscipline. If you have your HR personnel in position they'll know how a domestic inquiry should be initiated and how to proceed thereafter. Therefore assuming all what is required is available in your estt. The first thing to do is to initiate a formal 'domestic inquiry', issue show cause notice, obtain explanation and proceed based on the outcome based on the evidences & records available to you. You, any Competent Authority can suspend any accused pending inquiry for a period as provided for in your HR policy. But such a suspension would give a right to the concerned for 'subsistence allow.' during the suspension. Whereas your query is not sounding so as you are contemplating substituting adjustment of EL/PL against the suspension period which both does not go together.
Even if the inquiry findings slaps Demotion or Reduction in salary on an erring employee it should backed by a properly conducted 'domestic inquiry' only. There is other legal route to punish an errant outside a 'domestic inquiry' procedure. Any short cut method is not workable.
27th June 2015 From India, Bangalore
Dear Mr Nitin

Your Queries :- If An Employee Who Is Not Working Well And The Employer Wants To Suspend Him For One Week So Can Employer Suspend Him Or Not? If Employer Suspend Him And Employee Has A Balance Leave So At The Time Of Salary Preparation Can We Adjust Their Leave Against Suspension Period AND If We Demote To An Employee So Can We Decrease Their Salary Or Not? Please Reply..........

Answer:- The Employer / the Punishing Authority can issue Suspension-Pending Inquiry Order as prescribed in the SO or the Service Rules for grave act of Misconduct and thereafter on the conclusion of the Inquiry held as per Procedures issue Punishment Order.

In other cases of alleged Misconduct, better issue Charge-Sheet or Explanation Letter, get the Explanation Hold a Proper Inquiry and then issue Punishment Order based on the Findings.

During Suspension Pending Inquiry , the Employer has to pay Subsistence Allowance. In case the Suspension is a Punishment Order after Inquiry Findings, the Suspended Employee is not paid her/his wages/salary as that is a Punishment.

Employer can exercise his/her prerogative to Demote the concerned Employee and in that event, the Employee shall receive the Wages/Salary applicable to the Demoted Post.

Employee's Un-availed Leave can not be set off against /in lieu of the Suspension period.

Please advice in case you require any other assistance.

Kritarth Team 91 9560453756
27th June 2015 From India, Delhi
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