Garden leave is when an employee is required to stay away from work during their notice period, while remaining employed and receiving normal pay.
Key Takeaways
- Employee stays away from work during notice
- Normal pay and benefits continue
- Contract remains in force
- Cannot work for another employer
- Common for senior or sensitive roles
What is Garden Leave?
Definition
- Employee instructed not to attend work
- Notice period continues to run
- Normal pay and benefits continue
- Contract remains in force
- Cannot work for another employer
When Used
- Senior roles - access to sensitive information
- Competing roles - prevent competition
- Redundancy - during notice period
- Disciplinary - pending investigation
- Security concerns - protecting business interests
Legal Framework
Employment Rights Act 1996
- Section 13 - entitlement to paid holiday
- Section 14 - payment for holiday
- Section 15 - carryover of holiday
- Protection - applies during garden leave
Contract Law
- Contract remains in force
- Normal pay must be paid
- Benefits continue to accrue
- Restrictions may apply (e.g., working elsewhere)
Garden Leave Rules
Employer Obligations
- Pay normal salary - during garden leave
- Provide benefits - as per contract
- Honour notice period - cannot end early without agreement
- Respect restrictions - cannot force work elsewhere
Employee Obligations
- Stay away from work - as instructed
- Cannot work elsewhere - during garden leave
- Remain available - if required
- Return property - company equipment
- Maintain confidentiality - as per contract
Common Scenarios
Scenario 1: Senior Manager
- Situation: Senior manager resigning
- Garden leave: 6 months notice period
- Reason: Access to sensitive information
- Pay: Normal salary and benefits
Scenario 2: Redundancy
- Situation: Employee made redundant
- Garden leave: During notice period
- Reason: Avoid disruption to team
- Pay: Normal salary and benefits
Scenario 3: Disciplinary
- Situation: Employee under investigation
- Garden leave: Pending investigation outcome
- Reason: Protect business interests
- Pay: Normal salary and benefits
Managing Garden Leave
For Employers
- Check contract - for garden leave provisions
- Give clear instruction - in writing
- Pay normal salary - during garden leave
- Monitor restrictions - ensure compliance
- Plan return - before notice period ends
For Employees
- Understand restrictions - during garden leave
- Cannot work elsewhere - during garden leave
- Remain available - if required
- Return property - company equipment
- Maintain confidentiality - as per contract
Legal Considerations
Employment Rights Act 1996
- Right to pay - normal salary during garden leave
- Right to benefits - as per contract
- Right to notice - cannot end early without agreement
- Protection - from detriment for exercising rights
Equality Act 2010
- Protected characteristics - age, disability, gender, etc.
- Indirect discrimination - avoid policies that disadvantage
- Reasonable adjustments - for disabled employees
- Harassment - protect from bullying
Compliance Checklist
- Contract reviewed for garden leave provisions
- Clear instruction given in writing
- Normal pay and benefits provided
- Restrictions communicated and understood
- Property returned
- Confidentiality maintained
- Return to work planned
- Records maintained for 7 years
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