Dear Hetal
It is not known whether your factory is covered by the Industrial Establishment(Standing Orers) A ct 1946. If so, Sec.10-A of the Standing orders Act provides for suspension of a workman.If not, your servcie rules must have a provision for suspension.The employer can suspend an employee pending further action like investigation and enquiry.However the right to suspension must have been drawn by an employer either from astatute/ servcie rules/contarct of servcie. Therefore first, ascertain whether there is any enabling provision conferring such right on the employer, in the absence of which, the suspension is likely to be bad in the eyes of law.
Theft is an act which involves moral turpitude and thus can invite suspension irrespective the amount or quantity involved.However the right to suspend cannot be exercised mechanically by the employer.Therefore collect data and evidence before talking a call on the issue.If shifting the employee from his current job and posting him in a non-sensitive job will meet th ends of jsutice and is feasible, you can explore that option also.
The other steps that you need to take are :
1) Inititae disciplinary actin by serving chargesheet on the delinquent emplyee, calling for his explanation about the alleged theft;.
2) if the explnation is not found satisfactory, conduct domesticl enquiry, giving the employee opportunity to defend himself;
3) await enquiry report;
4) If he is found guilty, pass appropriate penalty asper your servcie rules.
B.Saikumar
Mumbai