Understanding Garden Leave
Garden leave, also known as gardening leave, is a practice that sees employers require employees to serve out their notice periods away from work, typically at home. During this time, the employee remains an employee, but they do not report to work or involve themselves in any company activities or contact clients. The practice is a common tool used to protect businesses from competition or to prevent employees from sharing sensitive information with competitors.
The Purpose of Garden Leave
The purpose of garden leave is to protect businesses from the potential harm caused by an employee’s departure. Companies use garden leave to prevent employees from sharing confidential information with competitors or clients while still being able to pay them for the duration of the notice period. It also provides the company with time to find a replacement for the departing employee without any disruption to the business.
The Legality of Garden Leave
Garden leave is legal and enforceable if the employee and the employer signed a garden leave clause in their contract. The clause should be clear and unambiguous, outlining the terms and duration of the leave. The duration of garden leave can vary from a few days to several months, depending on the industry and the role of the employee.
The short answer is yes. An employer can revoke garden leave by issuing a new contract of employment. However, this is not a straightforward process, and it can have legal implications.
The Legal Implications
When an employer revokes garden leave, it can be seen as a breach of contract. This is because garden leave is a contractual arrangement that outlines the terms and duration of the leave. If an employer breaches the contract by revoking the garden leave, the employee may have a claim for damages. The damages would be calculated based on any losses the employee suffered as a result of the breach.
How to Revoke Garden Leave
If an employer wants to revoke garden leave, they should seek legal advice before taking any action. They would need to draft a new contract that outlines the new terms and conditions of employment, including the start date of the new contract. The new contract should also state that the previous contract is terminated, and the employee is no longer on garden leave. The employer must ensure that the new contract is signed by the employee and that they understand the new terms and conditions.
The Employee’s Rights
An employee has the right to refuse the new contract and remain on garden leave. This can happen if the new contract has less favorable terms than the previous contract. If the employee refuses the new contract, they may have a claim for constructive dismissal. This is when an employer makes significant changes to an employee’s employment contract without their agreement, resulting in the employee feeling that they have no choice but to resign.
Conclusion
Garden leave is a legal practice that is enforceable if it is included in an employment contract. If an employer wants to revoke garden leave, they must seek legal advice and ensure that the new contract is fair and reasonable. An employee has the right to refuse the new contract and remain on garden leave, but this can have legal implications. Employers should always seek legal advice before making any significant changes to an employee’s employment contract to avoid any legal disputes.