QUICK ANSWER
An unpaid suspension is when an employer temporarily removes an employee from work and stops paying them — either as a disciplinary measure or while investigating a workplace incident. In Ontario, unpaid suspensions are only legal in limited circumstances. Getting it wrong can expose an employer to a constructive dismissal claim — and give an employee the right to treat the suspension as a termination and claim full severance.
What is an unpaid suspension?
An unpaid suspension means your employer has told you to stay away from work for a period of time — and will not be paying you while you are away. It is different from a paid suspension, where you are still away from work but continue receiving your regular pay.
Unpaid suspensions are most commonly used as a disciplinary tool — a step in the progressive discipline process between a written warning and termination — or as a temporary measure while an employer investigates a complaint or incident involving the employee.
Is unpaid suspension from work legal in Ontario?
This is the question most people are searching for — and the honest answer is: it depends. Ontario law does not automatically give employers the right to suspend an employee without pay. Whether it is legal comes down to two things: what your employment contract says, and how serious the misconduct is.
When it IS likely legal
● Your employment contract explicitly gives the employer the right to suspend without pay
● The misconduct is serious — such as violence, theft, or harassment
● A collective agreement permits it (for unionised employees)
● It is a genuine pending investigation — not a back-door punishment
When it is likely NOT legal
● Your contract says nothing about suspensions and the misconduct is minor
● The suspension is used as a punishment rather than a genuine investigative measure
● It lasts an unreasonably long time with no clear end or process
● It is connected to a protected ground such as disability, pregnancy, or age
Unpaid suspension for salaried employees — is it different?
Yes — and this matters. Salaried employees are paid a fixed amount regardless of how many hours they work in a given week. Because of this, some employment lawyers and courts have taken the view that deducting pay from a salaried employee for a partial-week suspension is particularly problematic — it fundamentally alters the nature of a salary arrangement.
For salaried employees, an unpaid suspension imposed without clear contractual authority — especially for minor misconduct — is more likely to be found to be an unlawful change to the terms of employment. If you are a salaried employee who has been suspended without pay, speaking with an employment lawyer is especially important.
Unpaid suspension pending investigation — what does that mean?
An unpaid suspension pending investigation means your employer has removed you from the workplace — and stopped paying you — while they look into an allegation or incident involving you. This is common in situations involving harassment complaints, alleged theft, workplace violence, or serious policy violations.
Courts in Ontario have drawn an important distinction here. A paid suspension pending investigation is generally considered acceptable — the employer needs time to investigate and is keeping the employee away from the workplace while the process runs its course. An unpaid suspension pending investigation is much riskier legally, because it imposes a financial penalty before the investigation is even complete and before any misconduct has been established.
Example: An employee is accused of inappropriate conduct by a coworker. The employer immediately suspends them without pay while investigating. Two weeks later, the investigation finds the allegation was unsubstantiated. The employee lost two weeks of pay — despite being found to have done nothing wrong. In Ontario, this kind of unpaid suspension may constitute a constructive dismissal, giving the employee the right to resign and claim full termination compensation.
What is constructive dismissal — and how does it connect to unpaid suspension?
If your employer suspends you without pay and they do not have the legal right to do so, it may amount to a constructive dismissal. That means the change to your employment — stopping your pay without proper authority — is so significant that the law treats it as if you were fired, even if your employer never used those words.
If constructive dismissal applies, you may be entitled to resign and claim the same termination pay and severance pay as any other dismissed employee — potentially months of compensation, depending on how long you worked there.
Critical warning: If you believe your unpaid suspension is unlawful, do NOT simply resign without first speaking to an employment lawyer. How you respond — and what you say — matters enormously. Resigning the wrong way can cost you your right to claim constructive dismissal and everything that comes with it.
What to do if you have been suspended without pay
Resigning impulsively — even when a suspension feels deeply unfair — can undermine a constructive dismissal claim. Stay calm and take no irreversible action until you have spoken to a lawyer.
Record the exact date, what you were told, who said it, and what reason — if any — was given. Save any written notices, emails, or messages related to the suspension. These details are your evidence.
Check whether your contract contains any clause that gives your employer the explicit right to suspend you without pay. If it does not — that is significant. If it does — the scope and limits of that clause matter.
If your lawyer advises it, send a written note to your employer stating clearly that you do not accept the unpaid suspension and are continuing under protest. This protects your right to claim constructive dismissal without forcing you to resign right away.
This is the most important step. An employment lawyer can assess whether your suspension was lawful, advise you on whether you have a constructive dismissal claim, and guide you through the right response — whether that is negotiating a resolution, returning to work, or pursuing your legal rights.
A note for employers
If you are an employer considering suspending an employee without pay, proceed with caution. The safer approach in most situations — especially during investigations — is to suspend the employee with pay. A paid suspension pending investigation preserves your ability to investigate freely while minimising legal risk. It costs you wages in the short term. An unlawful unpaid suspension can cost you months of severance pay, legal fees, and significant reputational damage.
Before issuing any unpaid suspension, review the employee’s contract, consider the severity of the conduct, document your reasoning clearly, and speak with an employment lawyer first.
The bottom line: An unpaid suspension is not always illegal in Ontario — but it is far more legally risky than most employers realise. For employees, it can be the foundation of a constructive dismissal claim worth months of compensation. For employers, it can be an expensive mistake that a quick legal consultation could have prevented entirely.
