Do I need to continue to pay a suspended employee?

Do I need to continue to pay a suspended employee SOCIAL.jpg.jpg

Suspending an employee is generally actioned to temporarily stop the employee carrying out work duties on behalf of an organisation. This is usually to enable their employer to execute a disciplinary or grievance investigation. 

It is often a difficult process for employers to manage, with serious implications if certain legal procedures regarding the employee’s salary and pay are not followed. WHN employment law expert Michael Shroot explores the consequences if you happen to get it wrong.

If an employee is suspended from work while an investigation is carried out, it is important for the employer not to be seen to assume the employee is ‘guilty’ of any allegations. Any such suspension must be viewed as an unbiased decision, not as a punishment.

Therefore, where a disciplinary allegation is raised, an employer should only suspend the employee where it is reasonably warranted. In almost all such cases the employee should continue to receive full pay and be clearly told why they are being suspended.

Why suspend an employee?

There are several key reasons why you might suspend an employee from work. They are:

  • To investigate an allegation of gross misconduct – for example theft, intoxication or violence at work, fraud or offensive behaviour.
  • On medical grounds – your employee may be going through medical treatment but not fit for work, or their health condition (a disease or contagious illness) may put other employees at risk.
  • Workplace risk to an expectant mother – in certain circumstances a pregnant woman may not be able to carry out her usual tasks due to health and safety concerns at work.
  • Due to an alleged criminal offence outside the workplace – that your employee is currently under investigation for.

Under what circumstances can an employee be suspended without pay?

An employee can be suspended without pay, only if their employment contract states that the employer can do this. If the employment contract does not state this, as an employer you may still be able to suspend the employee, but you must continue to pay them, to indicate that the suspension is not considered or seen as a punishment or assumes guilt.

Even with the appropriate clause in the contract, non-payment may be seen as a punishment and cause you issues further down the line when considering the reasonableness of an employer’s action during the disciplinary process.

Through the course of any type of suspension, wages are defined as any sums payable to the worker in connection with his employment. This calculation can be complicated as it may include bonuses, commission, and holiday pay.

Making a claim against unlawful deductions against an employer

There are laws that protect an employee from the unlawful deduction of pay. If an employee feels that they have been deducted wages during a period of suspension, when they should not have done, the employee may be able to make a claim to an employment tribunal for ‘unlawful deduction from wages’.

An unlawful deductions claim is a statutory concept set out in sections 13 to 27 of the Employment Rights Act 1996 (ERA 1996), that protects workers from unauthorised deductions being made from their wages.

There is a time limit for an employee to bring such a claim, which is within three months of the date of payment of wages from which the deduction was made.

The employment tribunal will need to consider the relevant circumstances when determining whether a sum is properly payable, including an assessment of the contractual position.

If a tribunal finds that the deduction was unlawful, the employer will have to repay the monies to the employee and there is no upper limit on the amount that can be awarded. Furthermore, a tribunal can award a sum it considers appropriate to compensate the worker for any financial loss sustained due to the unlawful deduction such as bank charges or loss of bank interest.

Suspension should not be seen not as a disciplinary event, therefore if a worker is punished such as through non-payment of wages, this could give rise to not only the claim being brought by an affected employer, but claims for breach of contract, unfair dismissal and depending on the circumstances some discrimination-type claims.

For more advice on this complex area of employment law or to help resolve any work-related disputes, contact Michael Shroot on 0161 761 4611 or [email protected]

Enjoyed this? Read more from Woodcocks Haworth & Nuttall Solicitors

Latest news

1

Meet the influencers who have generated £2m sales for one company Helen and Richard Chalu new

Meet the influencers who have generated £2m sales for one company

16 Oct 2025

2

WHN strengthens position in prestigious legal guide Daniel Long

WHN strengthens position in prestigious legal guide

16 Oct 2025

3

Warden appoints new commercial manager to strengthen project delivery and growth Peter Heskine

Warden appoints new commercial manager to strengthen project delivery and growth

16 Oct 2025

4

Stockley's finds its sweet spot Stockley's front view

Stockley's finds its sweet spot

15 Oct 2025

5

Breck to start £15m Blackpool affordable homes and retail development Cropper Road, Blackpool

Breck to start £15m Blackpool affordable homes and retail development

14 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin