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 period unless the employer has

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+
  • 30 Mar 2026 11:11

Popular Articles

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more Read more

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more Read more