If your employer has suspended you without pay or placed you on an “involuntary personal leave of absence,” you may have a claim for constructive dismissal and be entitled to termination pay.

This article explains constructive dismissal, how an unpaid suspension may lead to it, and what legal options are available.

What is Constructive Dismissal?

Constructive dismissal occurs when an employer fundamentally changes the terms of employment without the employee’s consent, effectively ending the employment relationship. This can happen in two ways:

1. A significant change to the terms of employment, such as:

   • Salary or compensation reductions, including removal of bonuses, shares, or reimbursements

   • Changes to duties, hours of work, job title, or work location

   • New workplace policies that substantially affect employment conditions

2. A toxic or poisoned work environment, where the employer creates conditions that force an employee to leave.

Employers must clearly define any changes in a written employment contract. If they do not, employees may have grounds to claim constructive dismissal.

When Is an Unpaid Suspension a Constructive Dismissal?

Employers can place employees on a paid administrative leave for legitimate reasons, such as workplace investigations or disciplinary actions. However, an unpaid suspension is more complex.

Generally, an unpaid suspension can be considered constructive dismissal because it violates the employer’s fundamental obligation to provide work and pay for that work.

Employers must have an express, clear, and enforceable contractual right to suspend employees without pay. If a contract allows for unpaid suspensions, it must:

• Be clear and unambiguous

• Define the length of the suspension

• Specify when unpaid suspensions may occur

If an employer suspends an employee without pay without a clear contractual right or for an unreasonable period, the employee may be entitled to severance.

What to Do If You Are Suspended Without Pay

If you are placed on an unpaid suspension, take the following steps:

1. Review your employment contract to determine if unpaid suspensions are allowed.

2. Gather evidence, including emails, policies, and suspension notices.

3. Seek legal advice from a constructive dismissal lawyer before making any decisions.

Employees who successfully claim constructive dismissal may be entitled to termination pay, which could include severance pay, benefits, bonuses, and other compensation. The exact entitlements depend on factors such as length of service, age, and difficulty in finding comparable employment.

Should You Resign?

If you are facing a suspension without pay, do not resign without first consulting an employment lawyer.

Resigning voluntarily may eliminate your right to severance and allow the employer to argue that you left willingly. It is also important to act quickly—if you continue working under new conditions for too long, it may be seen as accepting the change.

You should document your objection in writing to your employer if you believe you are being pushed out of your job.

Conclusion

Unpaid suspensions can often lead to claims for constructive dismissal. If you have been suspended without pay, you may be entitled to severance and other compensation.

Each case depends on specific facts, including the wording of your employment contract and the circumstances surrounding your suspension. Consulting an employment lawyer is the best way to determine your legal options and protect your rights.

Contact Achkar Law

If you are facing employment law challenges, our employment lawyers can help. We provide clear legal advice and representation to ensure you receive the compensation you are entitled to.

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