Preventive Suspension, Definition and How to Go About It

Preventive suspension is one of the most misunderstood HR tools in the Philippines. Many leaders mistake it as a penalty — but the law is clear: it is a temporary measure used only to protect life or property while an investigation is ongoing.

Why put an employee to Preventive Suspension (PS)

Preventive suspension is not a punishment. It is a temporary measure allowed under the Omnibus Rules Implementing the Labor Code (Book V) and supported by Gatbonton v. NLRC, G.R. No. 146779 (Supreme Court), used only when an employee’s continued presence poses a serious and imminent threat to the company, co-workers, or property.

This refreshed guide explains the legal basis, proper use, limits, and the risks of misuse — updated with jurisprudence and 2025 HR practice standards.

Legal Basis: Supreme Court & Labor Code

In Gatbonton vs. NLRC (G.R. No. 146779, January 23, 2006), the Supreme Court defined preventive suspension as:

“A disciplinary measure for the protection of the company’s property pending investigation… The employer may place the worker concerned under preventive suspension if his continued employment poses a serious and imminent threat to the life or property of the employer or of his co-workers.” (Gatbonton v. NLRC, Supreme Court summary – jur.ph)

The Omnibus Rules Implementing the Labor Code reinforce this:

“The employer may place the worker concerned under preventive suspension only if his continued employment poses a serious and imminent threat to the life or property of the employer or of his co-workers.” (Rule XXIII, Book V, Section 8) (Omnibus Rules, Labor Code – library.laborlaw.ph)

When Is Preventive Suspension (PS) Justified?

You may place an employee under PS only when ALL these elements are present:

• There is an ongoing administrative investigation.
• The alleged misconduct involves serious or grave offenses.
• The employee’s continued presence poses a real, imminent threat to life, safety, or property.

Common examples where PS is appropriate:

• Threats of violence
• Falsification, fraud, or misappropriation of funds
• Theft or attempted theft
• Major safety violations
• Harassment or serious misconduct placing co-workers at risk

When Preventive Suspension Is NOT Allowed

The Supreme Court has repeatedly ruled that minor violations or non–threat-related offenses do not justify preventive suspension.

In Woodridge School vs. Pe Benito (G.R. No. 160240, October 29, 2008), the Court held it improper to issue preventive suspension for:

• Uniform policy violations
• Tardiness or absenteeism
• Spreading rumors or minor workplace misconduct

Key principle: Without an imminent threat, preventive suspension becomes illegal. (Woodridge School v. Pe Benito, G.R. No. 160240 – jur.ph)

Maximum Period: 30 Days

PS can last for a maximum of 30 calendar days.

If the investigation is not yet complete after 30 days, the employer has two legal options:

1. Actual reinstatement — return the employee to work, OR
2. Payroll reinstatement — extend suspension but pay all wages and benefits.

In JRS Business Corp. v. NLRC (246 SCRA 445, 1995), the employer was penalized for violating the 30-day limit. (“CA finds due process lacking in ‘unjust’ dismissal” – BusinessWorld)

What Happens When You Exceed 30 Days?

Exceeding the allowable period — or placing someone under indefinite preventive suspension — is considered constructive dismissal.

Relevant cases:

• Hyatt Taxi Services Inc. vs. Catinoy (G.R. No. 143204, June 26, 2001) — excessive suspension = constructive dismissal (“Preventive Suspension Without Due Process: When Is It Legal?” – Respicio & Co.)
• Pido vs. NLRC (G.R. No. 169812, Feb. 27, 2007) — indefinite preventive suspension is illegal (“Preventive Suspension Must Not Be for Indefinite Period” – LVS Books)

How to Properly Issue Preventive Suspension (PS)

You may issue a separate notice, or include the preventive suspension within the Notice to Explain (NTE).

A complete NTE with PS must include:

• The alleged violations
• Factual basis of the accusation
• Reason for preventive suspension (imminent threat)
• Duration (maximum 30 days)
• Statement that the employee may submit a written explanation

This ensures compliance with due process while protecting company safety and property. For a deeper explainer on preventive suspension and due process, see “Understanding Preventive Suspension Under Philippine Labor Law” – Lawyer-Philippines.com.

Is Misuse of PS Grounds for Constructive Dismissal?

Yes. Misuse occurs when:

• The suspension is issued without a real threat
• The period exceeds 30 days without reinstatement
• The suspension becomes indefinite
• It is used to pressure an employee to resign

These situations legally amount to constructive dismissal, as reflected in multiple Supreme Court rulings and legal commentaries on preventive suspension limits and illegal suspension cases (see, for example, “Illegal Suspension NLRC Case Filing” – Respicio & Co.).

Key Principle to Remember

PS is not a penalty. It is a protective measure.

For it to be legal, there must be:

• A valid administrative investigation
• An imminent threat to life or property
• A maximum period of 30 days unless payroll reinstated

Used correctly, it protects both the organization and the integrity of the investigation. Misused, it exposes the employer to legal risks and labor claims.

Frequently Asked Questions