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Garden leave – what is it?
XpertHR defines garden leave as the practice of requiring an employee not to attend their employer's premises for work during their notice period. Instead, the employee is paid their full salary to stay at home.
Gardening leave is often used by employers wanting to protect themselves against competition or poaching of customers, clients, or staff by an employee (often senior) who has given notice or is to be dismissed.
Garden leave is commonly used within the terms of an employment contract.
Human resources issues regarding garden leave
Garden leave clauses are increasingly common in employment contracts. They do not so much replace restrictive covenants as reinforce them. Employers need to ensure that they have appropriately drafted clauses in their employees’ contracts of employment and that they exercise their right to place employees on garden leave carefully.
One of the biggest advantages of the garden leave arrangement is that the employer holds the purse strings while the leave continues, and the employee is still covered by any contractual duties, for example a duty of confidentiality, until the end of the notice period. They can also be bought back to work if needed. However, the employee will still be entitled to salary, plus all contractual benefits (e.g. bonuses) during a period of garden leave.
Court cases involving garden leave
William Hill Organisation Ltd v Tucker [1998] IRLR 313 CA
Mr Tucker was employed by William Hill as a senior dealer in its spread-betting business. He handed his notice in after receiving a "far more challenging and lucrative offer" by City Index Ltd, a competitor of William Hill.
William Hill responded to Mr Tucker, stating that he was not required to attend work for the remainder of his notice period but would continue to receive his salary and all other contractual ben
