Garden leave and the right to work

Produced by Tolley in partnership with Emilie Bennetts at Charles Russell Speechlys LLP
Garden leave and the right to work

The following Employment Tax guidance note Produced by Tolley in partnership with Emilie Bennetts at Charles Russell Speechlys LLP provides comprehensive and up to date tax information covering:

  • Garden leave and the right to work
  • The need for garden leave
  • Agreeing garden leave
  • Enforcing garden leave

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant tax changes associated with Brexit began to take effect. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit ― personal and employment tax implications guidance note.

Putting someone on ‘garden leave’ means sending them home on full pay during their notice period. This can be done when an employee resigns or when he is 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 him financial loss, cause him to become de-skilled or make it more difficult for him to find a new job. In this situation, there may be a right to work during his notice period unless the employer has a clear contractual right to require the employee to go on garden leave.

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