He may well be suspended (3)

I believe the answer is:

bob

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'he' is the definition.
(short for Robert)

I don't understand how the rest of the clue works.

(Other definitions for bob that I've seen before include "Quick curtsy" , "Move up and down like Robert" , "Brief curtsy - hairstyle" , "Move up and down as in water" , "-- Dylan, singer" .)

I've seen this clue in the Evening Standard.

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