Is he in gang or excluded? (8)
I believe the answer is:
banished
'excluded?' is the definition.
(I've seen this before)
'is he in gang' is the wordplay.
'in' is an insertion indicator.
'gang' becomes 'band' (I've seen this in other clues).
'is'+'he'='ishe'
'ishe' inserted inside 'band' is 'BANISHED'.
'or' is the link.
(Other definitions for banished that I've seen before include "Sent into exile" , "Condemned to exile" , "excluded?" , "Exiled" .)