Dear Mr. Ranjeet,
Many learned followers have contributed. I take this opportunity to give my views.
In most of the organizations, there is a Certified Standing Order(CSO) applicable to the working class in that organization. In absence of CSO, Model Standing Order(MSO) is followed. These provisions spell out the misconducts of major and minor nature, penalty to be imposed, treatment of period of suspension, subsistence allowance provision etc.
Some misconducts, which are of minor in nature, attract minor penalty like - Show cause, warning, recordable warning, stoppage of increment without cumulative effect etc. But some misconduct like - theft, damage to company's property or image, riotous behaviour, deeds involving moral turpitude, bribery, tempering with records etc. etc. (details given in CSO/MSO) attract major penalty. Before imposing major penalty, the following steps may be taken.
a) First of all a written complaint must be obtained regarding misconduct from a responsible official/supervisor or any other co-workman duly signed/forwarded by section manager or any superior.
b) After receipt of written complaint, a preliminary inquiry may be conducted. If prima-facie case exists, an approval should be obtained from Disciplinary Authority(DA) to initiate disciplinary action against accused workman, or the show cause/chargesheet should be signed by DA, giving atleast 03 days time for explanation. The accused workman can be put under suspension pending detailed departmental inquiry.
c) If explanation is not found satisfactory, departmental inquiry is to be constituted, consisting of IO, Mgt.reptv. and the accused workman is to be allowed assistance of co-worker of his choice. The inquiry will proceed and findings on the charges framed as to whether charged proved or not proved or partially proved. Based on the findings penalty (minor/major) is to be imposed by passing a reasoned order by DA.
d) If the workman is placed under suspension, normally subsistence allowance is paid after expiry of 3rd day/10th day as per provisions of Standing Order being followed. After this period, subsistence allowance is paid @ 50% of wages/salary(Basic+DA). This rate is to 75% if the inquiry proceedings and suspension continues beyond 21/30 days due to reasons not attributed to accused workman and it is reduced to 25% if proceedings are delayed due to reasons attributable to accused workman. During the suspension period, the employee has to put in/ get his/her attendance marked in a separate register kept for the purpose. He has to give a certificate of non-employment at any other place at certain duration for making him/her eligible for payment of subsistence allowance. Double employment is not allowed. If the accused workman is found guilty of misconduct, he is not paid any wages for the period except the subsistence allowance already paid, but if he/she is exonerated, full wages for the entire suspension period after deduction of subsistence allowance already paid is payable.
Hope this will give a better view of dealing with such cases.
A word of caution : Suspension should be the last resort and the gravity of misconduct should be so warranting suspension. Otherwise HR personnel are a soft target for both - higher management, the workers and their representing unions.
Best wishes
AK Jain