Suspension without pay

A suspension without pay is a short, unpaid removal from work as discipline. Without a clear right to impose it, it can be a constructive dismissal.

Also called: unpaid suspension, disciplinary suspension

What suspension without pay means

A suspension without pay is when you remove an employee from work for a set number of days and do not pay them for that time, as a penalty for misconduct. It usually sits near the top of a progressive discipline process, after written warnings and before dismissal.

It is a serious step, and it carries more legal risk than many employers expect. Taking away someone's pay is a major change to the employment relationship. If you do not have a clear right to do it, or you do it unfairly, the employee may be able to treat it as a constructive dismissal and claim notice.

How it works

Check your right to suspend first. The safest basis is a written employment contract, signed policy or handbook that says unpaid suspension is a possible consequence for misconduct. In a unionized workplace, the collective agreement governs. Without one of these, an unpaid suspension is risky for a non-union employer.

Keep it proportionate and short. A suspension should match the misconduct and the employee's record, be for a fixed number of days, and be confirmed in a letter that explains the reason, the dates, that it is unpaid, and what is expected on return.

A disciplinary suspension is different from an administrative suspension, where you send someone home while you investigate. In Potter v. New Brunswick Legal Aid Services Commission (2015), the Supreme Court of Canada found that an indefinite administrative suspension, imposed without good reason, was a constructive dismissal, and said the employer must show such a suspension was reasonable or justified. Keep investigation suspensions short, explain why, and decide promptly.

A suspension that leaves the employee with 7 consecutive days with no work and no insurable earnings needs a Record of Employment. Service Canada says to use code M, which covers dismissal or suspension.

Is it the same in every province?

The common-law rules on suspensions apply across Canada outside Quebec. In Nova Scotia, an employee with 10 or more years of service cannot be suspended without good reason or just cause, and federal and provincial wage rules still apply to any pay owed for time worked.

Example: A 2-day suspension at a Thunder Bay garden centre

Hana runs a 15-person garden centre in Thunder Bay. Her employee handbook, signed by every staff member, lists unpaid suspension as a possible consequence for serious safety breaches. A yard worker who already has a written warning for unsafe lifting operates the skid steer without being trained on it.

Hana gives him a letter suspending him without pay for 2 scheduled shifts, explains why, and sets out the training he must complete before using equipment again. Two days is under 7, so no ROE is needed.

Hollis drafts the letter

Hollis drafts province-specific discipline letters for your approval, so a suspension's reason, dates and expectations are set out in writing.

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Questions about suspension without pay

Can I suspend an employee without pay in Canada?

Only with a clear right to do so, such as a signed contract, policy or collective agreement, and only for a proportionate, fixed period. Otherwise it can be treated as constructive dismissal.

Can I suspend someone while I investigate?

An administrative suspension can be appropriate, but keep it short, explain why, and decide promptly. An indefinite suspension without good reason was found to be constructive dismissal in Potter (2015).

Do I need an ROE for a suspension?

If the employee has, or will have, 7 consecutive days with no work and no insurable earnings, yes. Use code M, dismissal or suspension.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.