Is Gardening Leave Legal?

Wayne Taylor
Written By Wayne Taylor

Understanding Gardening Leave

Gardening leave is a term that refers to the period of time that an employee spends away from work after resigning or being made redundant. During this time, the employee is still technically employed by the company but is not required to work. The term “gardening leave” originally referred to the idea that the employee could spend their time gardening, hence the name. However, the term has since evolved to include any activity that the employee chooses to do during their time away from work.

The Purpose of Gardening Leave

The purpose of gardening leave is to protect the company from any damage that the employee could cause during their notice period. This could include the theft of confidential information, the solicitation of clients or employees, or the damaging of business relationships. By keeping the employee away from the workplace, the company can reduce the risk of any negative consequences.

Common Practices

Gardening leave is a common practice in many industries, particularly those that rely on intellectual property or proprietary information. It is often included in employment contracts as a clause that specifies the length of the gardening leave period and any restrictions on the employee’s activities during that time. In many cases, the employee will continue to receive their salary and benefits during the gardening leave period.

The Legality of Gardening Leave

Employment Contracts

The legality of gardening leave depends on the terms of the employment contract. If the gardening leave clause is included in the contract and the employee has agreed to it, then it is legally binding. However, if the gardening leave period is longer than what is specified in the contract, or if the employee is not being paid during the gardening leave period, then it may be illegal.

Statutory Rights

Employees in the UK have certain statutory rights, including the right to a minimum notice period when resigning. The notice period can be set out in the employment contract, but it cannot be less than the statutory minimum. The notice period gives the employee time to find a new job and allows the employer time to find a replacement. If the gardening leave period is longer than the notice period, then it may be illegal.

Unfair Dismissal

If an employee is placed on gardening leave without their consent, then it may be considered unfair dismissal. This is because the employer is effectively terminating the employee’s employment without following the proper procedures. However, if the gardening leave clause is included in the employment contract, and the employee has agreed to it, then it is not considered unfair dismissal.

Conclusion

In conclusion, gardening leave is a common practice in many industries, and its legality depends on the terms of the employment contract. If the gardening leave clause is included in the contract and the employee has agreed to it, then it is legally binding. However, if the gardening leave period is longer than what is specified in the contract or if the employee is not being paid during the gardening leave period, then it may be illegal. It is important for both employers and employees to understand the terms of the employment contract to ensure that they are complying with the law.