Suspension without pay during investigation

Short answer

In most cases, no. Suspension during an investigation should normally be on full pay. Suspension without pay is only lawful in narrow circumstances, and even where a contract appears to allow it there is a real risk of a successful claim if pay is stopped. Whether your employer can do it depends primarily on the exact wording of your contract and on how they are behaving overall.

The general rule

Suspension pending an investigation is a neutral, precautionary step, not a punishment. Because it is not a disciplinary sanction, the starting position is that you continue to receive your normal pay and all your contractual benefits, such as any bonus, pension contributions, gym membership or company car, for the whole period of suspension. Official guidance is clear that suspension should normally be on full pay, and that keeping you on full pay is one of the ways an employer shows that the suspension is not a penalty or a prejudgment of the outcome.

If your contract is silent on suspension, your employer may still be able to suspend you, but only on full pay. There is no implied right to suspend without pay.

When suspension without pay might be lawful

An employer can only suspend you without pay, or on reduced pay, if there is an express contractual term that clearly gives it that right. Even then, two important qualifications apply.

First, the employer must exercise that power reasonably and not in a way that breaches the implied term of mutual trust and confidence. Stopping someone’s pay before any finding of wrongdoing can itself amount to a breach of contract even where the written contract appears to permit it.

Second, a term allowing unpaid suspension will be read narrowly and must genuinely apply to the situation. A clause allowing unpaid suspension in specific circumstances, such as where you are unable to work because you have lost a required licence or authorisation, is different from a general power to stop pay during any investigation.

Because of these risks, employers are generally advised to take legal advice before withholding pay during suspension, and many will keep an employee on full pay even where the contract arguably permits otherwise.

What to check in your own situation

The answer turns heavily on facts I do not yet have, so check the following:

1. What your contract, staff handbook or disciplinary policy actually say about suspension and pay. Look for any express clause permitting suspension without pay or on reduced pay, and read its precise wording and conditions.

2. What you have been told in writing about the suspension, including the reason, its expected length, and confirmation of whether pay and benefits continue.

3. Whether there is any specific reason you cannot be paid, for example a regulatory suspension, loss of a licence, or an inability to attend work for reasons outside the employer’s control, as opposed to a straightforward internal investigation.

4. How long the suspension has already lasted. Suspension should be kept as short as possible and reviewed regularly; an unnecessarily long suspension can itself be a breach of contract.

If your pay is stopped or reduced

If your employer withholds or reduces your pay without a clear and validly applicable contractual right, you have potential remedies.

An unauthorised failure to pay wages you are contractually owed can be an unlawful deduction from wages. You can bring a claim in the employment tribunal, generally within three months less one day of the deduction (or the last in a series of deductions), subject to the requirement to first notify ACAS for early conciliation, which can extend the time limit.

Stopping pay may also be a fundamental breach of contract. If it is serious enough, an employee with the necessary qualifying service (normally two years) might treat the contract as at an end and claim constructive unfair dismissal, though this is a high-risk step and should not be taken lightly. You could alternatively claim for breach of contract to recover the unpaid sums.

Practical next steps

1. Do not resign or escalate immediately. Withdrawing your labour or resigning too quickly can weaken your position.

2. Get and keep everything in writing, including the suspension letter, the stated reasons, and any statement about your pay.

3. Read your contract and disciplinary policy carefully, focusing on any suspension and pay clauses.

4. Raise the pay issue promptly and in writing. A short, factual letter or email stating that suspension should be on full pay, that you can find no valid contractual basis for withholding pay, and asking for immediate correction, will often resolve the matter and creates a useful record.

5. If that does not work, consider raising a formal grievance under your employer’s procedure.

6. Note the relevant time limits, and contact ACAS to begin early conciliation before the three-month tribunal deadline if the matter is not resolved, so you preserve your ability to bring a claim.

Key missing facts

To give you a firmer answer I would need to know the exact wording of any suspension and pay clause in your contract or handbook, the precise reason given for the suspension, whether any regulatory or licensing issue is involved, how long you have worked there, and whether your pay has actually been stopped or your employer has only threatened to do so.