The respondent, a sales manager for an insurance company, was suspended without pay after being charged with attempted extortion unrelated to his work.
He was later acquitted and reinstated.
He sued for his lost salary during the two-year suspension.
The Supreme Court of Canada held that while an employer has an implied power to suspend an employee for administrative reasons to protect legitimate business interests, such a suspension must generally be with pay.
The employer could not unilaterally withhold the employee's salary while denying him the opportunity to work.
The appeal was dismissed, and the employer was ordered to pay the agreed damages for lost salary.
