Latest in Employment Law>Articles>Can an employer refuse to pay an employee who is suspended pending investigation if they breach a term of their suspension?
Can an employer refuse to pay an employee who is suspended pending investigation if they breach a term of their suspension?
Published on: 05/02/2019
Issues Covered: Discipline Pay
Article Authors The main content of this article was provided by the following authors.
Chris Fullerton
Chris Fullerton

Can an employer refuse to pay an employee who is suspended pending investigation if they breach a term of their suspension?

Suspension is a protective measure often utilised by employers when investigating misconduct if the employer believes that the employee’s presence at the workplace could impede an investigation.

As suspension is a protective measure rather than a punishment, employers should continue to pay a suspended employee in the usual way as a refusal to provide remuneration can cause the suspension to be more akin to an impermissible disciplinary sanction.

However, if an employee breaches a term of his/her suspension, employers should firstly consult the terms of suspension and also assess the nature of the breach. In the absence of express contractual provision to withhold pay in the event of a breach of suspension terms, it would be inadvisable for employers to do so. Suspension should only be exercised on reasonable grounds and by withholding pay, regardless of the circumstances for doing so, employers would be increasing their exposure for litigation. More specifically, employers could face claims for breach of contract, particularly the implied term of trust and confidence, and/or unlawful deductions from wages.

In any event, suspension should only be for a limited period so withholding pay would likely generate minimal financial advantage for the employer.

Employers should ensure that suspension is dealt with comprehensively in a disciplinary policy and/or other appropriate policy. This will ensure employers have a clear procedure to follow when faced with a suspension scenario and therefore reduce the potential of any of the aforementioned claims being brought by the suspended employee.

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 05/02/2019