A tribunal judge has ruled Croydon LBC acted unlawfully when it refused to pay a former executive director while she was suspended.
In the first of three claims brought by former director for localities, Hazel Simmonds, Employment Judge Fowell ruled the council was wrong to reduce her pay on the basis she was off sick.
He ruled the council must pay Ms Simmonds nearly £15,000 of arrears.
The main case for unfair dismissal, race discrimination and victimisation has been scheduled to run for three weeks in December.
Employment lawyer Mark Greenburgh, of Greenburgh and Co, which was acting on behalf of Ms Simmonds, said: ‘The law on maintaining full pay during periods of suspension is clear and unambiguous.’
A council spokesperson said: ‘The judge’s ruling sets a worrying precedent for the payment of senior staff who are sick while suspended.
'We will be considering our options, including speaking to the Local Government Association and national employers.’