Is annual leave accrued on a period of paid suspension? If an employee is suspended from work pending a disciplinary investigation, is there an entitlement to accrue annual leave? Ideally we would like to adjust our annual leave policy to state that whilst on paid suspension you do not accrue annual leave but we’re not 100% sure of the implications of this.

Entitlement to annual leave generally relates to time worked. There are exceptions to this rule such as for example where a person is on maternity leave in which case they are treated as if they are still at work (except for remuneration purposes). In those circumstances annual leave continues to accrue. There is no similar statutory protection where someone is on paid suspension pending a disciplinary investigation. It is therefore a matter of contract between the parties.

However, suspension is intended to be a neutral act without prejudice to the outcome of the disciplinary investigation. Removal of the right to accrue annual leave suggests suspension is being used as a sanction and may