Employment contract suspension during disciplinary investigation: what is legally allowed

An employee is under disciplinary investigation and their presence creates operational or reputational risk. Can the employer suspend the employment contract until the procedure is finalized? In most cases, the answer is no. A wrong decision may generate significant legal exposure.

Following a decision of the Constitutional Court, employers can no longer suspend an individual employment contract during the preliminary disciplinary investigation. The Court removed this option to prevent abusive practices. As a result, employment contract suspension in this context no longer has a valid legal basis.

This limitation materially affects how internal investigations are handled. Management must protect assets, confidential information and staff, while fully observing employee rights.

What alternatives exist to employment contract suspension

In practice, companies rely on a solution similar to the common law concept known as “garden leave”. The employee’s physical and digital access to company premises and systems is restricted, yet full salary rights remain unaffected. The employment contract continues to produce legal effects.

This measure should be formalized through written notification. The document should refer to the existence of indications regarding a potential disciplinary breach and explain the need to restrict access in order to safeguard the company’s legitimate interests. It must clearly state that the employee is not considered unjustifiably absent and that remuneration remains unchanged.

The measure should not be automatic. The employer must conduct a proportionality assessment, meaning an evaluation of whether the restriction is appropriate in relation to the seriousness of the alleged misconduct. In cases involving data leaks, financial fraud or unauthorized system interference, access restriction may be justified. In minor matters, such a step may appear excessive and legally vulnerable.

When is legal suspension still possible

There is one relevant scenario in which employment contract suspension may still be lawful in connection with disciplinary proceedings. If the investigation concerns unjustified absences and the internal regulations expressly provide for suspension in such cases, the employer may suspend the contract and, consequently, salary payment.

The legal reasoning differs fundamentally. The employee does not perform work and lacks justification for absence. This is not a preventive distancing measure, but a consequence of failing to fulfil the obligation to work.

Any other form of employment contract suspension, adopted outside the strict legal framework, exposes the company to almost certain litigation. Courts will annul the measure and may order payment of outstanding salaries, statutory interest and legal costs. Beyond financial impact, such disputes affect governance credibility and employer reputation.

Sound decision-making in employment law preserves internal balance and protects long-term business interests. A properly managed disciplinary investigation safeguards the company without compromising legal compliance.

For legal assistance, you may contact us at: email: office@grecupartners.ro | Tel: (+4) 031 426 0745

If you are managing sensitive employee matters, a timely legal assessment can prevent costly disputes and operational disruption.