02-06-2008
Garden Leave
Garden leave has been looked at in the High Court this week where employees are placed on garden leave despite the fact that there is no provision in their contract allowing for this.
In this circumstance the employees had been found to be dishonestly using confidential information. The Court ruled that by doing so they had given up their right to attend work and the employer had acted reasonably in placing them at home on garden leave during the remainder of their notice period. However, this case is specific and reminds us that where there is no garden leave provision in a contract, it may be a breach of contract to place an employee on garden leave.
While the consequences of such a breach of contract may be insignificant to many, it is important to note that restrictive covenants in a contract will not be enforceable against an employee, where the employer has breached the contract by placing the employee on garden leave. The best advice, therefore, is to continue to allow for garden leave within the contract of employment.
In this circumstance the employees had been found to be dishonestly using confidential information. The Court ruled that by doing so they had given up their right to attend work and the employer had acted reasonably in placing them at home on garden leave during the remainder of their notice period. However, this case is specific and reminds us that where there is no garden leave provision in a contract, it may be a breach of contract to place an employee on garden leave.
While the consequences of such a breach of contract may be insignificant to many, it is important to note that restrictive covenants in a contract will not be enforceable against an employee, where the employer has breached the contract by placing the employee on garden leave. The best advice, therefore, is to continue to allow for garden leave within the contract of employment.
