Suspension

a) When and how to suspend an employee

Suspension can be by way of punishment or it can be a temporary suspension of contract of
employment pending enquiry into the alleged misconduct of the workman. An employee can be
suspended in certain cases, such as Where the charges against him are of a grave and serious nature
or his continuance in service would be likely to prejudice the investigation or if he is likely to tamper
with any evidence against him. Employee is suspended by means of a suspension order.

b) Position of employers right to suspend Right to be expressly provided either

in the standing orders or rules or the letter of appointment No implied right
It is well settled that the power to suspend an employee is not an implied term in ordinary contract
between master and servant and that such power can only be the creature either of a statute governing
the contract or of an express term in the contract itself. Therefore the absence of such power either as
an express term in the contract or in the rules framed under some statute would mean that the master
has no such right and even if he exercises such right, he has to pay full wages for the period of
suspension.
Hotel Imperial v. Hotel Workers Union, 1959 II LLJ 544 : 1959-60 (17) FJR 89 : 1959 AIR (SC)
1342 (S.C.3J)

c) Master-servant relationship Subsistence allowance Art. 21

Non-payment of subsistence allowance to the workmen suspended for misconduct would amount to
infringement of Art. 21 of the Constitution of India and violation of principles of natural justice as
suspension does not end master-servant relationship.
Union of India & Ors. v. Gulam Mohamed Ghanchi, 2006 I LLJ 33 (Guj.DB)

d) Suspension beyond 10 days Whether unfair labour practice

Though the suspension pending enquiry was continued beyond 10 days it was held not unfair labour
practice if it is extended by the authority competent to do so as per the settlement.
Divisional Controller, Maharashtra State Road Transport Corporation, Nagpur v. Vithal
Balkrishna Kakde, 2006 I CLR 49 (Bom.HC)