The most common and most likely answer to this crossword clue is the 7 letter word HANGING
I've seen this crossword clue in The Daily Telegraph
H
A
N
G
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Buddy explains!

The straight part
We know that "People get suspended receiving this punishment" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case people get suspended receiving this punishment = hanging.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does HANGING mean?
HANGING verb- To be or remain suspended.
- To float, as if suspended.
- (of a ball in cricket, tennis, etc.) To rebound unexpectedly or unusually slowly, due to backward spin on the ball or imperfections of the ground.
- To hold or bear in a suspended or inclined manner or position instead of erect.
- To cause (something) to be suspended, as from a hook, hanger, hinges or the like.
- To execute (someone) by suspension from the neck.
- To be executed by suspension by one's neck from a gallows, a tree, or other raised bar, attached by a rope tied into a noose.
- (used in maledictions) To damn.
- To loiter, hang around, to spend time idly.
- To exhibit (an object) by hanging.
- To apply (wallpaper or drywall to a wall).
- To decorate (something) with hanging objects.
- To remain persistently in one's thoughts.
- To prevent from reaching a decision, especially by refusing to join in a verdict that must be unanimous.
- To stop responding to manual input devices such as keyboard and mouse.
- To cause (a program or computer) to stop responding.
- To cause (a piece) to become vulnerable to capture.
- To be vulnerable to capture.
- Of a pitcher, to throw a hittable off-speed pitch.
- Suspended.
- (of a piece) Unprotected and exposed to capture.
- (of an off-speed pitch) Hittable; poorly executed by the pitcher hence relatively easy to hit.
- (of a person) ugly; very unattractive
- The act of hanging a person (or oneself) by the neck in order to kill that person (or to commit suicide).
- A sometimes public event at which a person is hanged.
- Anything that is hung as a decorative element (such as curtains, gobelins or posters).
- The way in which hangings (decorations) are arranged.