Employee Suspension Policy and Procedure for Hospitality Employers
What your suspension policy must cover, the step-by-step procedure to follow, and a template suspension letter for UK restaurant, pub, cafe and hotel businesses. Updated for 2026.
Leon Mclean
Co-founder, Birchlow · Last reviewed July 2026
A suspension policy is not bureaucracy for its own sake. It is the document that tells your managers what they can and cannot do when a serious allegation arises, and it is what a tribunal will look at first if the suspension is later challenged. In a hospitality business where conduct issues often arise quickly, in the middle of service, and where the instinct is to act immediately, a clear policy prevents expensive improvisations.
What your suspension policy must cover
A suspension policy for a hospitality business should address six things.
The purpose of suspension. The policy should state clearly that suspension is a precautionary measure taken to protect the integrity of an investigation. It is not a disciplinary sanction and does not indicate that the employee is guilty of anything.
When suspension is appropriate. The policy should set out the types of circumstances in which the business may suspend an employee: where the allegation is sufficiently serious, where the employee's continued presence at work creates a risk to the investigation or to colleagues or customers, or where the working relationship has been temporarily disrupted by the nature of the allegation. The specific grounds should be outlined.
Pay during suspension. The policy should confirm that suspension is on full pay unless the employee's contract of employment expressly provides otherwise. If you have included an unpaid suspension clause in your contracts, the policy should cross-reference it and note the circumstances in which it may apply.
Conduct during suspension. The policy should set out what the employee is and is not permitted to do during the suspension period. Standard restrictions include not attending the workplace unless specifically invited to do so, not contacting colleagues about the matter under investigation, not accessing business systems or records, and directing all queries to a named HR contact or manager.
Review and duration. The policy should commit to keeping the suspension under review and to completing the investigation as quickly as reasonably possible. It should identify who has authority to lift the suspension before the disciplinary process is complete.
Communication to others. The policy should address what will be said to colleagues and customers about the employee's absence. The standard approach is to say only that the individual is away from work for operational reasons. Disclosing that an employee has been suspended while under investigation can prejudice the process and may itself create a legal issue.
The step-by-step procedure
Step one: make the decision to suspend. The decision to suspend should be made by a manager with sufficient seniority, ideally someone who will not be the investigating or deciding manager in the disciplinary process that follows. Record your reasoning at the time. Why does this employee's continued presence at work create a risk?
Step two: inform the employee. Meet with the employee to inform them of the suspension. Keep the conversation brief and factual. Tell them that they are being suspended on full pay while an investigation takes place, that no decision has been made about any disciplinary matter, and that they will receive written confirmation shortly.
Do not use this meeting to discuss the allegation in detail. The investigation has not begun. This is not an interview.
Step three: issue the suspension letter. Issue the written suspension letter on the same day, or by the end of the next working day at the latest. Use the template below. The letter must be given to the employee directly where possible. If they have already left the premises, send it to their home address by recorded delivery and to their personal email address.
Step four: collect the employee's work equipment. At the point of suspension, collect any company property the employee holds: keys, key cards, vehicle keys, mobile devices, and company credit cards. This is a practical step that also signals clearly that the suspension takes immediate effect.
Step five: begin the investigation promptly. A suspension that is not followed by an active investigation loses its legal justification. Assign the investigation to a named individual and set a target completion date. Communicate the target to the suspended employee where possible.
Step six: keep the employee updated. If the investigation is taking longer than anticipated, write to the employee to update them on progress. An employee left in silence for several weeks will reasonably begin to feel that the suspension itself is punitive. Regular contact also demonstrates that you are acting in good faith.
Step seven: lift the suspension when it is no longer needed. If the investigation concludes without proceeding to a disciplinary hearing, or if the risk that justified the suspension is removed, lift the suspension promptly and in writing.
Suspension letter template
Managing the suspension period
The suspension period is not a pause in the employer's obligations. The following points often trip up small hospitality businesses.
Pay. Full pay means the employee's normal contractual pay, including any regular elements such as guaranteed hours pay. If there is any doubt about what full pay means in a specific employee's case, calculate on the side of paying more rather than less. A dispute about pay during suspension is a distraction you do not need.
Annual leave. An employee on suspension continues to accrue annual leave. They may also request to take annual leave during the suspension period. There is no rule preventing this, though you may want to agree on timing so the investigation can proceed without interruption.
Contact with the business. The restriction on contacting colleagues applies to informal contact about the investigation, not all contact. An employee who messages a friend at work about unrelated matters is not in breach. However, any attempt to discuss the investigation with witnesses should be treated seriously and reported to the investigation manager.
Mental health. Being suspended is stressful, even where the employee is confident they have done nothing wrong. Check in by telephone or in writing during the suspension period. Keep records of every contact. If an employee raises a concern about their wellbeing, take it seriously and respond appropriately.
From January 2027, the qualifying period for unfair dismissal claims drops from two years to six months. A poorly managed suspension that contributes to an employee resigning may give rise to a constructive dismissal claim from much earlier in the employment. Document your decisions and keep the suspension as short as the investigation allows.
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