Dear Raj,
So after you have been delegated the powers by your Management, this is the first case of indiscipline.
Conduct of every employee in an organisation is governed by the conduct rules applicable to him. The conduct rules may be called Standing Orders, or terms & conditions of contract of employment or Service Rules. The employee now committed also must be governed by certain service rules.
Whenver any complaint is received by you regarding misconduct of any employee, you have to ascertain what action is committed, whether that amounts to misconduct as per the service rules and whether that warrants for taking disciplinary action. You have to conduct a preliminary enquiry and make sure that the complaint is within the scope of the disciplinary procedure.
Suspension is not a punishment or it is not a must to take disciplinary action. If you are sure that the employee has committed an act which amounts to misconduct and there is a need to conduct a domestic enquiry and presence of the employee in the work place will affect the conduct of domestic enquiry, then only you have to suspend an employee. Normally, when any employee committed any serious misconduct the punishment of which may be termination of service, then only an employee is suspended.
During the suspension period, employee is entitled for subsistence allowance as per his standing orders.
That may be 50% of total wages for first 90 days, 75% of gross wages for next 90 days and 100% of gross wages beyond 180 days.
So first of all, conduct an informal preliminary enquiry and find out whether the said misconduct is committed. The complaint you received must be specific, mentioning the date, time, place of commiting the act of misconduct.
Dont proceed without concrete evidence to establish the misconduct. Be careful.
Since the Manager has admitted that he had committed the misconduct, you can give him a warning that he shall not commit misconduct in future and if he commits it will be viewed seriously.
If there is any financial loss, then ask him to pay loss incurred by your organisation due to his misconduct.
If you want to give any punishment to him then you have to conduct a domestic enquiry.
KCS Kutty, Chennai