Suspension Period for Employees Pending Enquiry
There is no specific period of limitation for suspending an employee pending enquiry unless mentioned in the service rules, standing orders, conduct rules, or terms of the contract applicable to him.
In certain State Acts like the Kerala Cooperative Societies Act 1969, no employee can be suspended for more than one year at a time without the prior and express approval of the Registrar of Cooperative Societies.
Since the purpose of suspending an employee is to conduct an enquiry into the charges leveled against the employee, no time limit can be prescribed as the enquiry must adhere to the principles of Natural Justice. Generally, suspension is implemented when the charges are serious in nature, potentially leading to the awarding of major punishment after the conduct of the enquiry.
An employee under suspension is entitled to a Subsistence Allowance, which is 50% for the first ninety days and 75% after 90 days as per Section 10A of the IE(SO) Act 1946.
Some States prescribe a higher subsistence allowance. For example, under the Kerala Payment of Subsistence Allowance Act 1973 and the Tamil Nadu Payment of Subsistence Allowance Act 1981, after 180 days, the employee under suspension is entitled to receive 100% of wages as subsistence allowance. In Karnataka, the Payment of Subsistence Allowance Act 1988 (effective from 1992) provides 90% after 180 days. I am not familiar with similar State Acts in other States.
It is always in the interest of the employer to conduct the enquiry and complete the process as early as possible, as the subsistence allowance, once paid, cannot be recovered in any case. In the event of reinstatement and revoking suspension, the salary/wages in full, after deducting the subsistence allowance paid, must be reimbursed.
Now, decide how long you want to suspend an employee?
Regards,
K C S Kutty