Summary: Suspension Without Pay in Alberta
Suspension without pay occurs when an Alberta employer temporarily stops an employee from working and ceases their wages, typically during an investigation or as a form of discipline.
Under Alberta law, employers generally have no automatic right to suspend a non-unionized employee without pay unless that specific power is granted in a signed employment contract.
Is it Constructive Dismissal?
If your contract does not allow for unpaid suspensions, being forced into one may be considered a constructive dismissal. This allows you to resign with a full severance package — potentially as much as 24 months’ pay.
On This Page:
Is an Unpaid Suspension Legal in Alberta?
In most cases, an unpaid suspension is a breach of the employment relationship. Unless you have signed an employment contract that explicitly allows the employer to suspend you without pay for disciplinary reasons, they are effectively failing to fulfill their primary obligation: paying you for your availability to work.
Even if an employer is conducting a legitimate workplace investigation, the “Gold Standard” in Alberta is that the employee remains on administrative leave with pay until the investigation is complete.
Administrative vs. Disciplinary Suspensions
Understanding the reason for your suspension is the first step in determining your legal options:
- Administrative Suspension: This usually happens when an employer needs to remove an employee from the office to conduct an investigation (e.g., into harassment or financial irregularities). In Alberta, these should almost always be paid. An unpaid administrative suspension is almost always a trigger for a constructive dismissal claim.
- Disciplinary Suspension: This is used as a punishment for a specific infraction. These are only legal if your employment contract or an established, agreed-upon company policy specifically outlines unpaid suspension as a disciplinary tool.
The Risk of “Acquiescence”
If you are suspended without pay and you simply wait for the period to end before returning to work, you may lose your right to sue for constructive dismissal later. By returning to work without a written objection, you are essentially telling the court that you accepted the suspension as a valid part of your employment.
What Should You Do If Suspended Without Pay?
- Check Your Contract: Look for clauses regarding “Discipline” or “Suspension.” If the word “unpaid” isn’t there, your employer likely doesn’t have the right to stop your wages.
- Object in Writing: Send a polite but clear email stating that you do not agree to the suspension without pay and that you are ready and willing to work.
- Do Not Resign Immediately: While an unpaid suspension can be constructive dismissal, you must handle the “resignation” part of the claim perfectly to ensure you get your severance.
- Seek Legal Advice: A lawyer can help you determine if the suspension is a fundamental breach of contract and calculate the total Alberta severance pay you would be owed if you chose to leave.
Get Legal Help Today
If you are currently on a suspension without pay in Alberta, you may be entitled to leave your job with a full severance package. Do not sign any “probationary” documents or accept a loss of wages without legal advice. Speak with our specialized team in:
Constructive Dismissal Lawyers in Edmonton
+ Other Alberta Locations