A report by the Children, Schools and Families Committee said too many teachers were suspended needlessly and some have had their careers ruined. Barry Sheerman MP said the committee were "shocked" that the government let teachers be "unjustly" barred from contact with colleagues.
Officials said the government would consider the report carefully, but added most cases were resolved quickly.
It is "unsatisfactory", the committee said, that no data was collected on how many teachers went on to be charged with any offence after being suspended. Teaching unions say just 5% of allegations result in a charge of misconduct or a conviction.