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

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more Read more

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more Read more

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Steve Collings Read more Read more