In most cases, employees should receive full pay during suspension. An employer who suspends an employee without pay (when the contract doesn't allow it) risks a claim for unlawful deduction from wages or breach of contract.
When Should an Employer Suspend on Full Pay?
- Pending a disciplinary investigation — the most common reason for suspension. The ACAS Code recommends that suspension during an investigation should be on full pay and should be as brief as possible
- Health and safety grounds — where the employer believes the workplace poses a risk to the employee (e.g., pregnant workers)
- Medical suspension — under specific health and safety regulations
When Can Suspension Be Without Pay?
Suspension without pay is only lawful if:
- There is a clear contractual right to suspend without pay
- The employee is on unauthorised absence (not a suspension by the employer)
- The employee is taking industrial action
What Counts as "Full Pay"?
Full pay during suspension typically means the employee's normal remuneration, including:
- Basic salary
- Regular contractual allowances
- Contractual benefits (car allowance, private medical, etc.)
However, overtime, commission, and bonuses may be excluded if they are not contractually guaranteed during suspension.
Best Practice
- Always confirm suspension in writing, stating the reason, duration, and conditions
- Review regularly — suspension should be as short as possible
- Do not use suspension as a punishment — it is a neutral act
- Ensure the employee knows their contact point during suspension
Our disciplinary and grievance team can guide you through the suspension process. Get advice.