Preventive suspension (PS) is a temporary, non-disciplinary measure that an employer in the Philippines may impose to remove an employee from the workplace pending investigation of alleged wrongdoing. It is meant to protect life and property while facts are being ascertained—not to penalize the employee. Misuse of preventive suspension exposes an employer to liability for salaries, damages, and even constructive dismissal.

Below is a practitioner-level explainer covering the legal basis, when and how it may be used, timelines, pay consequences, due-process requirements, pitfalls, special situations, and best practices.

1) Legal Basis and Nature

Nature: Interim measure; not a penalty. It should never be used to punish, pre-judge, or pressure an employee into resignation or confession.
Purpose: To immediately remove an employee whose continued presence poses a serious and imminent threat to the employer’s property or to co-workers’ lives and safety.
Who may be placed under PS: Any employee (rank-and-file, supervisory, managerial), provided the threat standard is met.
Interaction with dismissal: PS does not replace the separate, full process required for dismissal based on just causes under the Labor Code (now renumbered, e.g., Art. 297 [old 282]).

2) When Preventive Suspension Is Justified

The “Serious and Imminent Threat” Test

Preventive suspension is generally proper only if both are present:

Prima facie basis for the charge (credible initial indications the act may have occurred), and
The employee’s continued presence seriously and imminently threatens life, safety, or property, or risks evidence tampering, intimidation of witnesses, or disruption of operations that cannot be mitigated by less intrusive means.

Typical scenarios that may satisfy the test

Alleged theft, fraud, or serious dishonesty, or tampering with financial, inventory, or digital records.
Violence, threats, harassment, or behavior suggesting a risk of harm to co-workers.
Sabotage or gross safety violations (e.g., bypassing critical controls on production lines or high-risk equipment).
Cybersecurity risks (e.g., suspected exfiltration of trade secrets or admin-level system tampering).
Evidence risk where the employee retains special control over documents, systems, or witnesses and lesser measures (e.g., access revocation) are inadequate.

When PS is not justified

Garden-variety negligence, tardiness/absence, performance issues, or minor policy breaches where there is no immediate threat.
Situations where lesser measures suffice (e.g., re-assignment, remote work with revoked access, escorting during limited site access).

3) Duration and Pay Rules

Core rule for private-sector employees

Maximum unpaid period: Up to 30 calendar days. (Calendar, not working, days.)
Beyond 30 days: The employer must either reinstate the employee to work or may extend the suspension with pay (i.e., resume full wages and benefits during the extension) while continuing the investigation/disciplinary process.

Consequences if the rule is breached

Unpaid PS beyond 30 days generally entitles the employee to wages and benefits for the excess period. Prolonged or repeated “rolling” suspensions can amount to constructive dismissal.
If PS is found unjustified, pay for the PS period may be awarded even within the first 30 days, plus possible damages if bad faith is shown.

Effect on benefits and statutory contributions

During a valid unpaid 30-day PS, pay-linked benefits (e.g., 13th-month computation, leave accrual, allowances tied to days worked) can be affected per law and policy.
Extensions with pay are treated like active service for wage-linked benefits.
Government contributions (SSS/PhilHealth/Pag-IBIG) follow statutory rules tied to actual compensation paid during the period.

Public sector note (Civil Service): Rules differ. Preventive suspension pending administrative investigation may last up to 90 days (with distinct pay/allowance treatments). This article focuses on the private sector framework.

4) Due Process: How to Do It Right

Although PS is interim, basic due process still applies. The safest practice is to pair the PS with the start of the formal disciplinary process.

A. Before or Upon Issuance of PS

Document the reasons: Record the specific acts, threat assessment, and why no lesser measure suffices.
Issue a written Notice of Preventive Suspension that states:
- The specific allegations and factual basis for the perceived threat;
- The start date and duration (not exceeding 30 calendar days);
- Clarification that PS is not a penalty and is pending investigation;
- Instructions on return of IDs/devices and access restrictions.
Simultaneously (or promptly) issue a Notice to Explain (NTE) for the underlying charge:
- Detail the acts/omissions constituting the offense;
- Give the employee reasonable time to submit a written explanation (commonly 5 calendar days, or longer for complex cases).

B. Opportunity to be Heard

Provide a hearing or conference—especially if requested by the employee or if issues of credibility are central—where the employee may present evidence or witnesses and be assisted by counsel or a representative.

C. Investigation Timeline

Complete the investigation within the 30-day PS where practicable.
If more time is needed, reinstate the employee or extend with pay and explain the need for the extension in writing.

D. Decision Stage (if dismissal or penalty is pursued)

Observe the twin-notice rule for just-cause termination:
1. First notice (charge/NTE) – already issued;
2. Second notice (decision) – states the findings, legal basis, and penalty after due consideration of the explanation and evidence.
If the penalty is suspension (disciplinary), ensure it is distinct from the preventive suspension and supported by company rules/CBA and lawful standards.

5) Documentation Essentials

Intake memo: Who reported, what was reported, initial evidence gathered.
Threat assessment: Why presence is risky; why alternatives won’t work.
PS notice: Dates; clear “not a penalty” language; return-to-work or extension conditions.
Chain-of-custody for evidence and access-revocation logs (IT).
Investigation records: NTE, employee explanation, hearing minutes, witness statements.
Resolution memo: Findings, policy provisions breached, sanction recommended.
Second notice (decision): Final action and effectivity date(s).

Good records are crucial if the matter reaches the NLRC or DOLE mediation.

6) Common Employer Pitfalls (and How to Avoid Them)

Using PS as punishment: Emphasize it is temporary and protective, not disciplinary.
Issuing PS without a threat basis: Articulate concrete risks; avoid generic phrases.
Exceeding 30 days unpaid: Either reinstate or continue the PS with pay—never allow unpaid limbo beyond 30 calendar days.
“Rolling” PS for the same incident: Courts disfavor serial preventive suspensions; complete the investigation promptly.
No investigation while on PS: The employer must actively investigate—PS is not a pause button.
Skipping the NTE/hearing: Even with PS, the underlying charge requires full due process.
Vague company rules: Ensure the Code of Conduct and IT/security policies clearly define offenses and investigative powers.

7) Employee Remedies and Employer Defenses

If you are the employee

You may challenge PS that is groundless, exceeds 30 days unpaid, or is used as a de facto penalty.
Reliefs can include payment of salaries/benefits during the improper period, damages for bad faith, and if prolonged/abusive, constructive dismissal remedies.

If you are the employer

Defend by showing:
- Documented threat and necessity of PS;
- Prompt, genuine investigation within timelines;
- Strict adherence to the 30-day cap (or paid extension) and twin-notice process;
- Clear policy bases and proportional final action.

8) Special Contexts & Practical Variations

Unionized workplaces: CBAs may regulate PS further (e.g., paid PS, joint investigations). CBAs cannot legalize unpaid extensions beyond 30 days.
Remote/hybrid roles: Consider narrower alternatives (account lockouts, device retrieval) before PS; if risks persist (e.g., likely witness intimidation), PS may still be proper.
Sensitive roles (IT, finance, procurement): Document why access control alone is insufficient if you resort to PS.
Health-related incidents: If “threat” concerns health or safety, show specific risk (not speculation) and measure proportionality.

9) Checklist: Lawful Preventive Suspension, Step-by-Step

Assess threat (serious + imminent) and gather preliminary evidence.
Consider lesser measures; record why they’re inadequate.
Issue written PS notice (start date; up to 30 calendar days; “not a penalty”).
Issue NTE with specific charges; give time to explain.
Conduct hearing/conference (when requested/required).
Investigate diligently; secure records, devices, and evidence.
Decide:
- If more time needed: reinstate or extend PS with pay; explain in writing.
- If imposing a penalty (including dismissal): serve reasoned decision notice.
Lift PS upon reinstatement or conclusion; pay any amounts due (e.g., unpaid days beyond 30, if any).
Document everything.

10) Frequently Asked Questions

Q: Is preventive suspension always without pay? A: The initial period (up to 30 calendar days) is generally without pay. Any extension must be with pay, or the employee must be reinstated.

Q: Can we re-issue a new 30-day PS for the same incident? A: Doing so is risky and may be viewed as evasion of the cap, potentially leading to constructive dismissal findings. Extend with pay if truly necessary.

Q: Must we hold a hearing even if the employee submits a written explanation? A: If credibility is at issue or the employee asks for one, a hearing or conference is best practice and strengthens procedural due-process compliance.

Q: What if the employee was ultimately dismissed for just cause—do we still owe PS pay? A: If the PS was valid and kept within 30 unpaid days, no. If the unpaid period exceeded 30 days, the excess is typically payable regardless of the dismissal’s validity.

Q: Can we place someone on administrative leave instead of PS? A: Labels matter less than substance. If the effect is removing the employee from work without pay, the 30-day cap applies. Paid leaves follow the policy/CBA terms.

11) Model Templates (Short Form)

Notice of Preventive Suspension (Short Form) Date: ________ To: [Employee] You are hereby placed under preventive suspension effective [date] for [up to 30 calendar days] due to allegations of [specific acts]. Your continued presence is assessed to pose a serious and imminent threat to [life/property/operations] because [reasons]. This measure is not a penalty and is imposed pending investigation. Please return company property and comply with access restrictions. A separate Notice to Explain accompanies this letter. Signed: __________

Notice to Explain (Short Form) Date: ________ To: [Employee] Please explain in writing within [x] calendar days why you should not be disciplined for [specific charges; cite policy provisions]. You may submit evidence and request a conference/hearing.

12) Key Takeaways

Use preventive suspension sparingly, only where the facts show a serious and imminent threat that lesser measures cannot address.
Cap unpaid PS at 30 calendar days; beyond that, reinstate or pay during the extension.
Run the full due-process track (NTE → hearing/opportunity to be heard → reasoned decision).
Document the threat assessment, investigation steps, and decisions.

This article provides general information on Philippine private-sector practice for preventive suspension and is not a substitute for tailored legal advice about specific facts, CBAs, or company policies.