
Does an employer have to pay an employee who is suspended?
Suspension usually takes place either:
- To enable an employer to investigate allegations of misconduct; or
- For medical or health and safety reasons.
Therefore, suspension should be invoked as a protective measure and should not be utilised as a disciplinary sanction nor in a manner likely to result in the breakdown of the implied duty of trust and confidence between the employer and employee. On this basis, even if an employee is suspended as part of a disciplinary process, they should continue to receive full pay. The only exception to this is if there is an express provision to the contrary in the contract of employment. Employees suspended for medical or health and safety reasons should always receive full pay for the duration of the suspension.
If an employee falls sick whilst on a period of suspension, an employer could review the amount of pay the employee is receiving if the employee would otherwise only be entitled to statutory sick pay. However, if the employee’s contract expressly states that they are entitled to full pay during suspension, it is prudent for the employer to continue to pay the employee their full pay. This would prevent the employee taking a claim for unlawful deductions from wages against their employer. Another option would be to end the suspension and instead place the employee on sick leave.
In any event, employers should take proactive steps to resolve the issue warranting the employee’s suspension swiftly.
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