Suspension Of An Employee - Jpg Download

Dear team,

My cousin has been working as an employee in a private insurance company for 3 years. He resigned from his position on 9th August 2016, and his resignation was accepted by his superior on 10th August 2016. He is currently serving a 30-day notice period.

On 1st September, an investigation was initiated against him, and his last working day was on 7th September. However, in September, he received a letter from the HR team stating that he had been suspended from 30th August with 50% salary due to an investigation pending for the misrepresentation of doubtful material facts. He did not receive his relieving from the organization and continued working until 4th October. He did not receive his August salary but was paid 50% of his salary for September.

On 3rd October, he received a system-generated email from the HR team stating that his resignation had been accepted. When he inquired about this on 4th October, the HR team informed him that he was still under suspension and was asked to wait outside the office until the investigation is concluded. Until now, no response has been received from the organization.

Given his financial constraints, he is unsure if he can join a new company or if he must wait until the investigation is finalized. As he cannot afford to be without income, please provide an urgent solution to his dilemma.

My Dear Anonymous friend,

I have perused both the letters you have enclosed in your queries. I have observed that your resignation was accepted, but before you are relieved from duties, they have suspended you and initiated some investigations against you. Their action seems to be an afterthought and biased. It appears that they have not disclosed the irregularities alleged against you, which is highly improper. You can certainly ask the employer to provide a list of irregularities alleged against you so that you have an opportunity to prepare a reply for your defense.

BS Kalsi,
Member since August 2011

Your cousin cannot join another company until he is officially relieved after accepting his resignation and properly handing over charge.

The list of irregularities is not included in the suspension order. The said list of irregularities, if any, will be made available to him only upon the issuance of a formal Charge Sheet after the completion of a preliminary investigation. At that point, he will have the opportunity to defend himself against the charges of irregularities. He can be relieved from his current position once cleared following a regular domestic inquiry or departmental inquiry, as the case may be.

I agree with the version of Mr. Kalsi. The certain irregularities should have been clearly mentioned by the management. You can also ask this in writing to the management. Since the suspension pending enquiry is from 30th August, the management had no business to stop your August salary, which can be taken up by you as well.

B.K. Mohanty
Senior Consultant

The suspension appears to be less than an order which is legally sustainable; it is mere communication from an unspecified authority. It could have legal effect only if duly authenticated and duly served upon the employee concerned.

So also, the alleged suspension is no ground for denying the salary for the month of August.

Dear Anonymous friend,

As you have mentioned that your cousin has been suspended since 30th August with 50% of the salary pending investigation, and he continued working until 4th October. Paying at the rate of 50% salary for the month of September seems acceptable if the company's policy or Standing Orders support this. However, it was neither proper nor legal to withhold the salary for the month of August.

BS Kalsi,
Member since August 2011

Dear Shri Venu,

From the attachments provided by the author, it is evident that the author of the question has only scanned the text portion to avoid revealing the organization and the signatory. Additionally, according to the author, the employee is receiving 50% of their salary, which could be considered a subsistence allowance during the suspension period. As you are likely aware, salary is not permitted during a suspension; only a subsistence allowance is granted.

Thank you.