Q&As

Is an employee on garden leave who refuses alternative employment entitled to a statutory redundancy payment?

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Last updated on 11/05/2018

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Is an employee on garden leave who refuses alternative employment entitled to a statutory redundancy payment?

Is an employee on garden leave who refuses alternative employment entitled to a statutory redundancy payment?

An offer of alternative employment in a redundancy situation is relevant both in the context of determining whether or not the employer has followed a fair redundancy procedure, as well as (as an entirely separate legal consideration) in the context of determining whether or not the employee is entitled to a statutory redundancy payment. In this Q&A we refer to the latter context.

Assuming an employee is eligible for a statutory redundancy payment, the circumstances in which he or she may lose their entitlement to the statutory redundancy payment are as follows:

  1. where an offer (whether in writing or not) is made to an employee before the original contract expires—

    1. to renew their contract of employment, or

    2. to re-engage them under a new contract of employment

    with renewal or re-engagement to take effect either immediately on, or after an interval of not more than four weeks after, the end of their employment

  2. the employee will lose their entitlement to a statutory redundancy payment—

    1. where the offer of the renewed or new contract is on the same terms as the old employment and the employee unreasonably refuses it

    2. where the offer of the renewed or new contract is on different terms, is suitable and the employee unreasonably refuses it

    3. where the offer of

Related documents:
Key definition:
Garden leave definition
What does Garden leave mean?

A colloquialism describing the period during which an employee remains bound by their contract of employment but is required, usually under an express term of the contract, not to attend work or make contact with clients or customers.

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