Place an employee who has resigned on garden leave

Key points

• "Garden leave" refers to the situation in which an employer instructs an employee not to come into work for the duration of the notice period. It is most commonly used when the employee has given notice of resignation to go to work for a business that is in competition with the employer.
• Employers should check whether or not there is a garden leave clause in the employee's contract of employment and should understand the potential risks involved in going ahead and placing the employee on garden leave if there is no such clause.
• The employer should ensure that it complies with its duties towards the employee under the contract of employment throughout the garden leave period, including in relation to benefits such as a company car and pension contributions.

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