The employer should therefore be prepared for the possibility of needing to take enforcement action against an employee who is refusing to comply with the terms of any gardening leave clause. Collections of articles, videos and comment in a range of areas of interest, Our lawyers listed by their sector, expertise and location, Browse our areas of expertise and services, Find our office locations and get in touch, Find out about our events around the globe, Careers information for lawyers, graduates, apprentices and business services, Read about us, our history and our work in the community, Restrictive Covenants: Constructive dismissal, gar, Click here to see the full breadth of our expertise , NHS Health Law Booster Training Programme, TMT, software, tech projects and outsourcing, See the full list and create your profile, Health and Social Care - NHS/Public Sector. Outside of work, Evie loves horse riding and spending time with her family. The use of gardening leave can be especially useful where the employer is concerned that any post-termination restrictive covenants may be difficult to enforce against the employee. 17.1 The Company shall be under no obligation to vest in or assign to the . Did you have to resign or get dismissed because your employer breached your contract? Garden Leave is a business strategy that employers can use to protect their business interests when an employee who may pose a business risk to an organisation, leaves the organisation through resignation, dismissal or redundancy. The employee should instead be held to their obligation to give notice by being placed on garden leave for the duration of the relevant notice period. A Post-Termination Restrictive Covenant prevents a leaving employee from taking clients or key employees from their former employer, or from working for a competitor. Get in touch and see how we can help you. Gardening leave is essentially the same as suspending an employee on full pay. Customer data and connections, confidential information and the stability of the workforce would generally be deemed legitimate business interests. This means the employee will not be allowed to work for anyone else during this period. Care They are also required to carry out reasonable management instructions. Rather the employer has failed to comply with the contract of employment in a major respect, unilaterally changed the terms of employment or expressed a settled intention to do either thus forcing the employee to quit. A decrease in the employee's duties or a removal of a primary area of responsibility is considered a dismissal in disguise, whether or not they are accompanied by changes in salary or job title. If you do not agree with your employers decision to put you on gardening leave, and there is no clause to say that your employer has a contractual right to do so, then you may be entitled to resign and make a claim of. A period of Garden Leave cannot exceed the employees normal notice period, and may not be enforceable if the notice period exceeds six months, as an Employment Tribunal could determine this period is longer than what is necessary to protect the interests of the business. You should still be paid while on garden leave. A Collection is a selection of features, articles, comments and opinions on any given theme or topic. In the event the employee refuses to follow the terms of garden leave, the employer may be able to apply to the courts for an interim injunction on the basis that immediate termination of the contract would be damaging to their business. We explain how this affects you and what rights you have. The High Court also considered whether the lack of a contractual provision setting garden leave off against the PTR prevented the PTR from being enforceable. Courts will, as this case shows, be alive to the possibility that individuals may manufacture constructive dismissal claims in an attempt to escape notice periods and restrictive covenants. If a prospective new employer is impatient or has pressing needs, they may be unwilling to wait for a long period of garden leave to end and it may hamper the employee being out of the market for an extended period of time. They may be worried that you will use your notice. Garden Leave refers to a clause in a contract of employment which allows an employer to require an employee not to attend work or to only carry out limited tasks during the period of garden leave. But, in practice, it is really important that an employer does not use them to go beyond what is reasonably necessary to protect their legitimate business interests. It is a measure generally used for senior employees who have access to sensitive and strategic information such as pricing data, high-level technical knowledge, or important customer contacts. How does PILON differ from gardening leave? Safeguarding In all circumstances, employers should take legal advice about all the implications of having a Garden Leave clause in the employment contracts of their employees. An organisation may decide that alternative strategies such as payment in lieu of notice (PILON) and a settlement agreement with a Post-Termination Restrictive Covenant may be a preferable option to both themselves and to the employee. If you have a question about your individual circumstances, call our helpline on0300 123 1100. Whenever someone leaves a job, whether by choice, redundancy or dismissal, there is usually a period of notice before the last day of employment. As well as endeavouring to get employees an increased exit package, when reviewing a settlement agreement we also go through all terms and conditions with a fine tooth comb. Instead of working their notice period, the employee is placed on Garden Leave. Food safety guides We use cookies to optimise your experience. They may just feel its more comfortable for both parties for you not to attend work. Home > Resignation. The Chartered Institute of Personnel Development (CIPD) defines Garden Leave as: Garden Leave is the term used to describe the situation where an employee is required by the employer to remain away from work (perhaps doing the gardening!) Unfair dismissal and gardening leave Gardening leave; is it lawful? Study online and gain a full CPD certificate posted out to you the very next working day. This does not mean that the organisation has to use this strategy for all leavers, but it gives them the option to do so if they feel that it is required. The length of garden leave should be determined by the terms of the employment contract. If the employee has a company vehicle, they may be able to retain use of the vehicle through the Garden Leave period, but this will be dependent upon whether the vehicle use is part of the employees compensation package. If you feel you have been forced to resign then you may be able to claim constructive unfair dismissal. These cookies will be stored in your browser only with your consent. This could include setting up your own business in competition with your previous employer. Just get in touch today to speak to one of our employment law specialists. for the period of the Garden Leave. We promise not to share any of the information you provide, with your employer. In general, the employee should continue to receive all normal salary and benefits during garden leave, unless their Employment contract says something different. Working closely with our experts in HR, we provide comprehensive guidance on employment contract drafting, negotiating exit packages and developing policies and documentation to minimise legal and reputational risk while ensuring commercial goals are achieved. By placing the exiting employee on Garden Leave, the organisation removes the problem from the workplace, as they cannot make contact with employees during their notice period. It is a commonly held belief that you cannot fairly dismiss an employee for Gross Misconduct if you have not firstly suspended them. Its so called because the employee is kept away from the business but able to spend time pursuing hobbies, like gardening. We also use third-party cookies that help us analyse and understand how you use this website. An organisation will often have a clause in the employment contract that states that they will place exiting senior executives on Garden Leave to mitigate any risks to the business. Garden Leave is a business strategy that employers can use to protect their business interests when an employee who may pose a business risk to an organisation, leaves the organisation through resignation, dismissal or redundancy. If theres contractual provision for pay in lieu of notice together with post-termination restrictive covenants, although arguably more difficult to enforce these can help to protect the employers business interests as a cheaper alternative to gardening leave. Because the usual aim of placing an employee on Garden Leave is to protect the business interests, employers will normally inform the employee that their Garden Leave will take effect immediately. Did your employers follow the correct procedure? An employer can require the employee to make themselves available during the Garden Leave period to answer any queries or to complete handovers. One of THE most important stages is to get your grievance right. During gardening leave, the individual will be contractually retained by the employer as an employee, but they will be kept away from the business. This would usually form part of a negotiated exit, and documented in writing. She is currently doing an apprenticeship in Level 3 Business Administration. The employer remains under an obligation to perform all the terms of the contract including the payment of salary and the provision of all contractual benefits. ZA824540 and Data Protection Authority ref no. International Agreement Visa (Temporary Work). In some circumstances where there is not a garden leave provision in an employment contract, an employer may be in breach of contract if they send you home with no work, even if you are still on full pay. Evie has worked at CPD Online College since August 2021. Can the employee start a new job while on gardening leave? They will continue to be paid and accrue their rights and benefits in the usual way during the garden leave period and technically they could be required by their employer to undertake work. Garden leave, or gardening leave as its also referred to, describes the workplace practice where an employee leaving a job having resigned, been made redundant or dismissed is instructed by their employer not to attend the workplace or perform any duties, either at home or otherwise, during the whole or part of their notice period. THE FACTS Mr Leonard was employed as Head of Desk at an interdealer brokerage firm, Square Global. The employee is still employed during garden leave, even though they're not working. We'll explain your options in confidence and without any obligation. A well-drafted garden leave clause should specify the duration of the period of garden leave and the rules that apply during this period, such as prohibiting contact with colleagues, clients, customers and suppliers; obligating the employee to return all company property in their possession; and requiring them to remain available to their employer to answer queries or help with a handover. If your employer has a contractual right to put you on garden leave, and you are going to a competitor, this will be relatively straightforward for your employer to obtain. When an employee is placed on Garden Leave and they begin their notice period, they may be asked to complete any tasks that they are actively involved with, and/or they may be asked to participate in a handover. If this stands, an employer is not obliged to provide an employee with work (only to pay them) therefore, they could place an employee on garden leave without breaching the employment contract even if no explicit clause was included.
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