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Case law
Newey v Encompass Care Organisation UK

Being suspended without good reason can itself be a breach of your contract.

The ruling

“Suspension found unlawful, a knee-jerk reaction; her separate disability discrimination claim failed.”

Suspension isn't a neutral, automatic step. Your employer needs a genuine and proportionate reason for it, and getting that wrong can itself amount to a breach of your contract.

  • Ask why you've been suspended and what evidence supports it. A vague reference to "policy" or "usual practice" isn't enough on its own.
  • Note whether you were asked for your side of the story before the suspension decision was made, and whether minutes were kept of that decision.
  • If you're considering resigning over how a suspension or investigation was handled, get advice first, since whether it counts as a breach of your contract depends on the detail.
Read the full case

The situation

A care home team leader with almost two decades of service was told, with immediate effect and no consultation, that most of her administrative duties would be replaced with direct care work. Days later, her employer suspended her over a handful of minor, unverified concerns raised during an internal review, including Easter eggs bought for residents, a Wi-Fi installation, and a printer bought from her partner. No one asked for her explanation before the decision to suspend her was made. She resigned shortly afterwards.

What the tribunal found

The tribunal held the suspension was unlawful: a "knee-jerk reaction" rather than a genuine, individual assessment of risk, and one the employer's own disciplinary policy did not support. It found: "The suspension of the claimant was simply a knee-jerk reaction... The respondent simply did what it normally did." That, combined with the abrupt change to her role, was enough to amount to a breach of the implied term of trust and confidence, entitling her to resign and claim constructive unfair dismissal under section 95(1)(c) of the Employment Rights Act 1996. Her separate disability discrimination claim failed. Nobody at the care home knew, at the time, that stress from the process could trigger her epileptic seizures.

Full citation

Newey v Encompass Care Organisation UK. Case number 1401930/2024. Employment Tribunal. January 2026.

Last reviewed 14 July 2026