Understanding Suspension vs. Termination: Is Suspension Really a Punishment?

Difference Between Suspension and Termination

Please tell me the difference between suspension and termination. Is suspension a punishment or not, and where are the provisions about it?

Regards,
Amit.

Understanding Termination and Suspension

As the name suggests, termination means the separation or severance of the employer-employee relationship. Normally, termination is initiated by the employer. When the same action occurs from the side of the employee, we refer to it as resignation.

Types of Suspension

Suspension can occur in two ways, each serving different purposes. Suspension is implemented pending a particular event or outcome.

In other words, if an employee has committed serious misconduct, such as making life threats to superiors, willfully damaging property, or engaging in sabotage, then in such circumstances, the employee may be suspended pending disciplinary action, which could ultimately lead to termination. Therefore, the employer has the right to suspend an employee in critical circumstances until a final decision is made. The suspended employee is entitled to a subsistence allowance during the suspension period. Additionally, if no action is decided upon, the employee is also entitled to all benefits, including full wages for the intervening period and continuity of service.

The other form of suspension is as a form of punishment. There are various types of punishments, such as a warning, fine, suspension for no more than 4 days, discharge, and dismissal, which is the most severe punishment. These punishments are in increasing order depending on the seriousness of the misconduct. The last three punishments are imposed only after a disciplinary inquiry is conducted, during which charges are established.

You can find a list of misconduct, punishments, and procedures in the Industrial Employment Standing Orders Act, which includes prescribed Model Standing Orders.

Regards,

While I agree with points made by Adv. Kulkarni, permit me to state my take on this matter.

Termination vs. Suspension

"Termination" and "Suspension" are two mutually exclusive issues.

Putting an end to the contract of employment, whether by the employer (as a result of disciplinary action or by superannuation in the natural course) or by an employee deciding to terminate the contract of employment (resignation, Voluntary Retirement, etc.), indicates the end of the "employer-employee" relationship between the employee and the employer.

"Suspension" can be either by way of punishment (and cannot be for more than FOUR days for one matter) as a response to some defined misconduct on the part of the employee. It does not put an end to the contract of employment or a break in service. It is just that the contract of employment is "suspended" and NOT terminated. Therefore, the employer-employee relationship continues.

The other type of "suspension" is by way of an action to suspend the employee in response to defined misconduct pending investigation, procedural compliance, and the employer's final decision in the matter. The Law (Industrial Employment (S.O.) Act 1946) permits such an action but within stipulated parameters. This is NOT punishment contemplated under the act. It is resorted to only in cases of SERIOUS misconduct when the management considers the continued presence of the accused employee to be detrimental to evidence or a threat to the complaints and/or witnesses or to the plant and property of the organization. However, here also the employer-employee relationship is put in suspended animation but not by way of punishment. It is for these reasons suspension pending investigation, etc., has to be handled very carefully as otherwise it may be viewed as bias on the part of the employer and it could then vitiate/dilute the ultimate quantum of punishment in litigation if it leads to that!

Regards,
samvedan

October 28, 2013

This is part of the post of Mr. Samvedan:

"Suspension" can be either by way of punishment (and cannot be for more than four days for one matter).

Attribution: https://www.citehr.com/474622-differ...#ixzz2j4nDcOq9

To my knowledge, there is no such ceiling as four days anywhere. In fact, the Model Standing Orders in most of the states have the ceiling as 30 days in case of punishment for one offense. It could either be 30 days or one month.

I maintain what I have said and reassert the same. I wish you had not made a blanket comment on the issue you are not familiar with.

Model Standing Orders

Model Standing Orders provided under the Bombay Industrial Employment (Standing Orders) Rules 1959 at Schedule I stipulate unequivocally at Clause 25 outlining various "punishments" under subclause 1(c). I quote, "Suspended by an order in writing signed by the Manager for a period not exceeding four days." Clause 25 starts by stating, "A workman guilty of misconduct may be..."

Further under Clause 25(5), and I quote again:

"A workman against whom any action is proposed to be taken under subclauses (b), (c), or (d) of Clause (1) may be suspended pending the inquiry or for the period, if any, allowed to him for giving his explanation. The order of suspension may take effect immediately on its communication to the workman."

For Maharashtra at least, I stand vindicated! I hope next time more care and caution would be exercised before becoming judgmental!

Personally, I refrain from commenting on areas that I am not equipped to comment on!

Regards,
Samvedan

October 29, 2013

I have gone through the posts of yourself and also of Mr. Samvedan. What Mr. Samvedan has stated is correct. There cannot be an unlimited number of days of suspension as a punishment. So, a four-day limit is certainly prescribed in the Model Standing Orders of most of the states.

Perhaps you may be referring to the action of suspension pending disciplinary inquiry for which there is no limit. However, unreasonable suspension is always questionable in the courts, and courts may revoke suspension.

Regards,
Adv. K. H. Kulkarni

Mr. Samvedan is correct insofar as suspension as punishment is concerned. The Model Standing Orders under Maharashtra State Rules stipulate suspension not exceeding four days as a punishment. Probably a different period could be stipulated by Model Standing Orders under a different state.

B. Saikumar
HR & Labour Law Advisor

Interesting. I agree with Adv. Kulkarni. I wish to add as follows:

Termination

Termination can be classified as punitive if it is by way of dismissal of services for misconduct under the Standing Orders. However, resignation from services voluntarily also amounts to termination. Summary dismissal is no longer a legitimate disciplinary action as it would amount to retrenchment.

Suspension

Suspensions are of two kinds, "Suspension" as punishment and "Suspension pending inquiry." Usually, Standing Orders, if there is one in existence in the particular establishment, duly certified by the certifying officer, define suspension as a punishment with an outer limit as to the number of days (e.g., in the Tea Industry where I work, the maximum number of days a worker/employee can be suspended as punishment is 21 days or 3 weeks). "Suspension pending inquiry" is not punitive, and an employee is placed under suspension pending inquiry when there is prima facie evidence of serious misconduct and there is sufficient reason to believe that his or her presence at work could potentially jeopardize/influence documentary evidence/witnesses and consequently prejudice the outcome of the departmental/domestic inquiry. During the period of suspension pending inquiry, the concerned employee has to be paid subsistence allowance, but the employee is barred from the workplace during the entire period of suspension pending inquiry.

While I agree with our friend's views on the subject, I simply put it as follows:

Suspension

- Keeping an employee away from work for a specified period (check your company's standing orders) due to acts of indiscipline by the employee. Such indiscipline is serious and grave, and if the employee continues in employment during the course of domestic enquiry proceedings, they may influence the proceedings. Therefore, management keeps them aside during such a period (suspension pending enquiry case).

- Suspension can also be a straightforward decision due to unreasonable acts of an employee. Sometimes, depending on the gravity of the case, certain organizations will take this serious view while issuing a show-cause notice.

Termination

- Termination of an employment contract upon completion of a specific period.

- Termination of an employee after holding a domestic enquiry, where the employee is found guilty as per the Enquiry Officer's report.

Hope you can understand now.

Regards,
B. Dakshina Murty

While the learned members have all contributed valuable information on the subject of suspension and termination, a word of caution for employers is that they should not exercise this power mechanically and without thoughtful consideration. Since suspension impacts an employee more than punishment both financially and emotionally, employers should not allow suspension to continue for prolonged periods. It is essential to ensure the expeditious disposal of disciplinary cases that are pending while an employee is suspended.

Regards,
B. Saikumar
HR & Labour Law Advisor

When we discuss the "subject of suspension," it's automatic that the payment of subsistence allowance during "suspension pending enquiry" also arises. This is because suspension "without payment of subsistence allowance" is null and void (ref. Capt. Paul Anthony Vs. B.G.M.L. (S.C.)).

Regarding the period of suspension, as you all know, it should be governed by S.O. read with relevant Acts & Rules such as the ID Act, the Industrial Employment (Standing Orders) Act, 1946, etc. In some cases, HR policies govern such suspension issues, and the actions of such an employer are subjected to natural justice. Some of the relevant provisions are discussed in the attached judgments which may shed some light on the issue.

Regards.

Understanding Suspension in the Workplace

Suspension is implemented when administration needs to conduct an inquiry, ensuring that suspending an employee does not alter the evidence. Suspension is not considered a punishment.

Regards.

With all due respect, no subsistence allowance is attracted if the suspension is by way of punishment after following due process of a domestic enquiry. Subsistence allowance is only payable when an employee is suspended pending an inquiry.

Suspension and Termination: Key Differences

Suspension is a temporary termination from service. It is not considered a punishment according to the law. During the period of suspension, the employee is entitled to receive a subsistence allowance for their livelihood. Suspension cannot be continued indefinitely. The suspension order shall be revoked after two years; by that time, the case against the employee is required to be decided.

Termination, on the other hand, is essentially ousting. Employees can be terminated from service for various reasons. However, termination orders are subject to judicial review.

Regards.

"SUSPENSION" for Not More Than 4 Days

"SUSPENSION" for not more than 4 days means a punishment for a limited time. Termination, on the other hand, signifies the end of the relationship between employer and employee.

Please let me know if you need any further assistance.

Regards.

Understanding Suspension and Termination

Suspension is a temporary termination, subject to reinstatement after the specified period. Termination, on the other hand, is the permanent removal from service. Suspension is not a punishment.

Understanding Suspension and Termination

It is not appropriate to construe suspension pending disciplinary action as temporary termination. On the other hand, suspension keeps the contract of service only in abeyance for the period during which the disciplinary action is pending and does not sever it even temporarily. It is not compulsory that an employee is entitled to reinstatement in all cases of suspension, as it depends upon the result of disciplinary action and domestic inquiry where it is possible to dismiss an employee for a proved misconduct. An employee is entitled to reinstatement only where the suspension is revoked pending inquiry and where the penalty imposed is other than dismissal.

Regards,
B. Saikumar
HR & IR Advisor

Employee Suspension During Misconduct Inquiry

When an employee commits misconduct and it is necessary to conduct an inquiry to find out the facts, it seems that the employee may tamper with the evidence or influence witnesses. In such cases, the employee is suspended. The duration of the suspension depends on the disciplinary authority. Once the disciplinary authority is satisfied that the initial inquiry is complete, the suspension may be lifted, and the employee can return to work.

Regards,

Suspension is a temporary cessation of employment. It is not a punitive measure. Termination, on the other hand, involves permanently severing an employee from their job due to serious charges that have been proven against the employee.

Thank you.

Understanding Suspension and Termination

Suspension means prohibiting an employee from reporting for the normal duties assigned to them. This is a serious punishment and is generally awarded only after a proper inquiry has been conducted. If the charges against the suspended employee are serious and are proved, suspension may lead to termination.

An employee may be suspended from service for various forms of indiscipline and misconduct such as:

- Absence from duty without leave
- Use of insulting and abusive language against seniors
- Theft and fraud
- Accepting a bribe
- Disobedience
- Willful damage to factory property, etc.

When an employee is suspended, they are issued a charge-sheet and asked to explain why their services should not be terminated. An inquiry is also ordered into the conduct of the suspended employee. If found guilty, the employee will be punished, which could include a warning, demotion, or even dismissal.

We can say that the suspension of an employee may be positive or negative.

Understanding Termination

Termination means the retrenchment of an employee's services for economic reasons in a going concern, i.e., a running industrial unit. Termination of service can occur due to disciplinary action, prolonged illness, retirement, superannuation, or the expiry of an agreement.

The Industrial Dispute Act of 1947 lays down the following conditions for retrenchment:

- The employee must be given one month's notice in writing indicating the reason for termination or wages in lieu of such notice.
- The employee must be paid compensation equal to 15 days' wages for every completed year of service.
- In the absence of any agreement to the contrary, the worker employed last must be terminated first.
- Terminated workers must be given preference in future employment.
- Establishments employing 100 or more workers are required to give three months' notice and to seek prior approval of the government.

Regards,
Amit C