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Summary: Understand the key reasons for employee suspension, when to use it, and best practices for a fair and compliant implementation process.

Employee suspension is one of the more challenging crossroads in workplace management. It requires careful navigation between protecting your organization and treating team members with appropriate respect.

This guide unpacks the when, why, and how of employee suspension. It provides practical frameworks for handling these sensitive situations professionally and effectively and, importantly, minimizes potential legal complications that often arise from improper implementation.

What is Employee Suspension?

Employee suspension is a temporary measure employers use to remove staff members from the workplace while investigating allegations of misconduct, performance concerns, or other serious issues. During this period, employees generally receive regular pay and benefits as they remain employed under contract terms.

It’s important to note that suspension itself is not considered a disciplinary action. Rather, it’s a precautionary step that may or may not lead to formal disciplinary proceedings, depending on the investigation’s outcome. 

The primary purpose of suspension is to facilitate a thorough and unbiased investigation without the employee’s presence potentially influencing the process or creating additional workplace complications.

How Employee Suspension Works in a Progressive Discipline Model

Suspending employees without good reason or proper process can get you sued. Instead, use a step-by-step approach (progressive discipline) that starts with verbal warnings and only moves to harsher measures like termination when needed.

A progressive discipline approach also allows your employees to self-correct before you take more severe measures: 

  • You start by having your managers address issues directly with the employee, highlighting concerns and setting clear expectations.
  • If problems persist, you should move to a written warning, creating an official record of the issues and required improvements. 
  • When these steps fail to correct behavior, suspension becomes necessary. 

You must properly notify the employee they’re being temporarily removed from work, conduct a thorough review during their absence, and determine the next steps based on your findings.

After suspension, you’re left with one of two decisions: termination if the issues warrant it or continued employment, often with specific improvement requirements. This approach balances fairness with accountability. 

Reasons for Suspending an Employee

You might suspend an employee for the following reasons:

1. Serious Misconduct

When an employee engages in behavior that violates company policy, such as harassment, violence, theft, or fraud, you need to take immediate action. In this case, suspension protects other employees, preserves evidence, and demonstrates your commitment to workplace safety and integrity. 

EXAMPLE

A financial analyst reportedly shared confidential client information with competitors. You suspend them while investigating access logs and emails and interviewing team members to determine if a data breach occurred.

2. Internal Investigations

Suspending an employee during an ongoing investigation differs from suspending someone for confirmed misconduct. During investigations, the suspension is a procedural step that creates distance as evidence is gathered. You need this separation to make sure the investigation is impartial and thorough.

EXAMPLE

Multiple staff members report one of your managers for creating a hostile work environment. You suspend the manager while conducting confidential interviews with team members who might otherwise feel intimidated speaking up if the manager remained actively working.

3. Safety Concerns

You might also suspend an employee if they become dangerous toward staff, customers, or themselves. This may involve threatening behavior, serious safety violations, mental health challenges, or impairment at work.

The suspension gives you time to assess the situation, implement safety measures, and determine if the employee needs intervention before returning to work.

EXAMPLE

One of your warehouse workers arrives visibly intoxicated and operates heavy machinery erratically. You immediately suspend them to prevent accidents, arrange for safe transportation home, and require a fitness-for-duty assessment before they can return to work.

4. Poor Performance

If an employee repeatedly falls short of core job responsibilities despite multiple opportunities to improve, then suspension becomes a necessary next step.

This step should be taken only after exhausting feedback sessions, coaching efforts, and formal improvement plans without seeing meaningful results.

The enforced time away has two purposes:

  • It unmistakably signals that the situation has reached a critical point, and
  • It provides the employee with uninterrupted time to reconsider their approach to the job seriously. 

EXAMPLE

Your sales representative consistently misses their monthly targets by over 50% for six consecutive months. Despite providing additional training, one-on-one coaching sessions, and a detailed 60-day improvement plan, their performance shows no improvement.

You issue a three-day suspension, requiring them to return with a written self-assessment and action plan for meeting their targets.

How to Suspend an Employee

Please note that suspension policies vary across different states, sectors, and countries. The following general framework can be adapted to your workplace requirements. 

Step 1: Determine if Suspension is Warranted

  • Review company policies to ensure the employee’s conduct meets suspension criteria.
  • Gather evidence related to the incident or behavior in question.
  • Consider alternatives such as a verbal warning or written reprimand if appropriate.
  • Consult with HR and legal counsel to evaluate potential risks and compliance with employment laws.

Step 2: Plan and Document the Suspension

Suspensions should be documented to avoid potential claims of unfair treatment.

  • Prepare written documentation outlining the reason for suspension, duration, and conditions.
  • Decide whether the suspension will be paid or unpaid, considering legal requirements in your jurisdiction.
  • Outline clear expectations for the employee during the suspension period.
  • Plan for the employee’s temporary absence by redistributing work responsibilities.
  • Prepare to collect company property such as keys, badges, and devices.

Step 3: Communicate and Implement the Suspension

  • Hold a private meeting with the employee, with an HR representative present.
  • Clearly explain the reason for the suspension without getting into debates.
  • Provide the written suspension notice and review its contents together.
  • Address logistical matters like returning company property and restrictions on accessing work systems.
  • Explain the next steps, including the investigation process and when they can expect to hear from you.

During this meeting, maintain professionalism and allow the employee to ask questions, but avoid getting drawn into arguments about the merits of the suspension.

Remember that a suspension is a tool for addressing workplace issues rather than as punishment. When handled correctly, it protects all parties involved. 

How to End an Employee Suspension

When the suspension ends, meet with the employee to discuss the findings of any investigation, communicate decisions about their future with the company, and outline expectations moving forward. 

Scenario 1: Employee is Terminated

In this scenario, you must explain the reasons for termination and: 

  • Deliver the final paycheck to the employee according to state requirements
  • Provide the employee with termination paperwork or a severance agreement
  • Explain the benefits of continuation options such as COBRA

During this process, you also need to collect the remaining company property and address practical issues like email forwarding, password changes, and system access revocation. 

Scenario 2: Employee Stays Employed

During an employee’s return meeting, you should discuss future expectations and consequences for failure to perform as required. 

This conversation must include: 

  • Clear outlines of performance and conduct standards 
  • A timeline for improvement with scheduled check-in meetings
  • Identification of resources and support to help the employee succeed

Additional training or mentoring might be considered to bolster their success. 

Scenario 3: Employee Stays Employed

In this scenario, thank your employee for their cooperation and inform them of any new expectations. No written performance plan is necessary since it wasn’t a performance-based suspension. 

It’s important to state that they have been cleared of any wrongdoing and address any concerns about workplace relationships that may have been affected. If necessary, you might want to consider whether public clarification is needed within your organization and discuss how to facilitate a smooth return to your employee’s regular duties. 

Monitoring for any signs of retaliation from colleagues or managers is advisable.

In Summary

Throughout the suspension resolution process, it is crucial to maintain consistency in handling similar situations, ensuring fairness and avoiding bias.

Compliance with company policies and procedures must be upheld, along with adherence to any applicable collective bargaining agreements.

Additionally, to protect against discrimination claims, decisions should be based solely on documented behaviors rather than subjective judgments.

Drew Donnelly
Drew Donnelly

Director, Regulatory Affairs

 Linkedin

Andrew (Drew) joined the Remote People team in 2020 and is currently Director, Regulatory Affairs. For the past 13 years, he has been a trusted advisor to C-Suite executives and government ministers on international compliance and regulatory issues. Drew holds a law degree from the University of Otago, a PhD from the University of Sydney, and is an enrolled Barrister and Solicitor of the High Court of New Zealand.