Being suspended from work can be stressful and unsettling, particularly when an employee believes the suspension is unjustified.
Under New Zealand employment law, employers have the right to suspend employees in certain circumstances, but that right is subject to important legal safeguards.
When Can an Employer Suspend an Employee?
Suspension generally occurs when an employer requires an employee to stay away from work while an investigation or disciplinary process is undertaken.
An employer may consider suspension where there are serious allegations of misconduct, concerns about workplace safety, or a risk that the employee’s continued presence could interfere with an investigation.
However, suspension should not be used as a punishment or imposed simply because an allegation has been made. There must be a genuine and reasonable justification for taking such action.
The Requirement for a Fair Process
Employers are generally required to follow a fair process before suspending an employee. This usually involves explaining why suspension is being considered, giving the employee an opportunity to respond, and genuinely considering that response before making a decision.
In exceptional circumstances, such as an immediate safety risk, suspension without prior consultation may be justified.
Employers must also consider the terms of the employment agreement and any relevant workplace policies.
Is an Employee Entitled to Be Paid?
In most circumstances, an employee should continue receiving their normal pay while suspended. Suspension without pay is generally only permissible where there is a lawful basis for it, such as an applicable provision in the employment agreement.
A suspension should also last no longer than reasonably necessary. An employer cannot simply leave an employee suspended indefinitely without proper justification.
Challenging an Unjustified Suspension
An employee who believes they have been unfairly suspended may have grounds to raise a personal grievance for unjustified disadvantage under the Employment Relations Act 2000.
Even where an employee continues to receive full pay, an unjustified suspension may adversely affect their employment, professional reputation and workplace relationships.
Depending on the circumstances, the employee may seek remedies through the Employment Relations Authority, including compensation for humiliation, loss of dignity and injury to feelings.
A personal grievance must generally be raised with the employer within 90 days of the relevant action or when it came to the employee’s attention, whichever is later.
Seeking Legal Advice
Suspension disputes can arise from both the reasons for the suspension and the procedures followed by the employer. Employees should seek legal advice promptly if they believe their suspension is unjustified.
Employers can also benefit from legal advice before imposing a suspension, particularly where allegations are serious or the circumstances are disputed.
Whether you are an employee challenging a suspension or an employer facing a workplace dispute, obtaining early legal advice can help protect your rights and avoid unnecessary escalation.
This article provides general information only and is not a substitute for legal advice about your particular circumstances.