Dear Amit,
As the name suggests, termination means separation or severance of employer-employee relation. Normally, the termination is by Employer. When the same occurs from the side of employee, we call it resignation.
Suspension is in two way. Both have different purposes. Suspension is effected pending something to happen.
In other words, if an employee has committed a serious misconduct such as life threats to superiors, willful damage to property, sabotage etc. then in such circumstances, he is suspended pending disciplinary action which may lead to termination. So, the employer has a right suspend an employee in critical circumstances till a decision to take a final action is taken. The suspended employee is entitled to subsistence allowance during his suspension. Also, if no action is decided, then he is also entitled to all benefits such as full wages of the intervening period, continuity of service etc.
The other suspension is by way of punishment.
There are various types of punishments such as: Warning, Fine, Suspension for not more than 4 Days, Discharge and Dismissal which is the last punishment. They are in increasing order depending upon the gravity of misconduct. The last 3 punishments are inflicted only after a disciplinary inquiry is made in which charges are established.
You can find the list of misconduct, punishments and procedure in the Industrial Employment Standing Orders Act in which Model Standing Orders are prescribed.