Labour Research March 2007

Law Queries

Suspension without pay

Q: A member was involved in a fight at work and has been suspended without pay. Is an employer entitled to do this before it's even investigated?

A: An employer can only suspend an employee without pay if a clear term in the employment contract specifies that it can. If there is no such term, suspension is a fundamental breach of contract.

The Acas code of practice states that even suspension with pay should only take place after an investigation, and the employer should make it clear that this does not amount to disciplinary action. The code points out that disciplinary action should not be taken until the facts of the case have been established and the action is reasonable in the circumstances.

Suspension without pay can be used as a disciplinary sanction (if the contract allows it) but only after the employer has established reasonable belief that the employee is guilty of the misconduct.