Garden leave and the right to work

Produced by Tolley in association with Hannah Freeman at Old Square Chambers
Employment Tax
Guidance

Garden leave and the right to work

Produced by Tolley in association with Hannah Freeman at Old Square Chambers
Employment Tax
Guidance
imgtext

Putting someone on ‘garden leave’ means an employee is paid and receives their full contractual benefits during their notice period but is not permitted to attend for work. In these circumstances, the employee continues to be subject to their other contractual obligations ― for example, not competing with the employer and the duty of fidelity. An employee can be placed on garden leave when they resign or when they are dismissed with notice.

In some situations, employees are pleased to be sent on garden leave and no difficulties arise. However, there are circumstances in which garden leave can be a major area of dispute, often because the employee wants to leave work immediately in order to work for a competitor.

An employee may also object to being put on garden leave where this will cause financial loss, cause them to become de-skilled or make it more difficult for them to find a new job. In this situation, there may be a right to work during the notice

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Hannah Freeman
Hannah Freeman linkedinicon

Barrister at Old Square Chambers , OMB, Employment Tax


Hannah is an experienced employment law specialist advising on all forms of discrimination, maternity and paternity rights, unfair dismissal, contractual disputes, part-time working and TUPE. Hannah acts for claimants and respondents in both the public and private sectors, including the NHS, the police, local authorities, educational institutions, financial services and the hospitality industry, as well as providing training and support to in-house legal and HR teams.

Powered by Tolley+
  • 14 Sep 2022 10:49

Popular Articles

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more Read more

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

Read more Read more