Notice to Place Employee on Garden Leave

Garden Leave Notice UK

A garden leave notice is a formal document used by UK employers to place an employee on paid leave during their notice period. This approach is often used to protect business interests, such as confidential information or client relationships, when an employee has resigned or is being dismissed. Using a structured template ensures clarity, compliance, and helps manage the process effectively for both parties. This guide provides essential information on creating a compliant garden leave notice UK.

What is garden leave in the UK?

Garden leave, sometimes referred to as gardening leave, is a period where an employee who has resigned or been given notice is required to stay away from work but remains on the payroll. During this time, the employee continues to receive their normal salary and benefits but must not attend the workplace, perform any duties, or contact clients, colleagues, or suppliers. The primary purpose is to prevent the employee from working during their notice period, thereby safeguarding sensitive information and business operations as they prepare to leave, often to join a competitor.

When to use a garden leave notice

A garden leave notice is typically considered in specific situations. It is most common when a senior employee or someone with access to critical commercial secrets resigns. It may also be used during a disciplinary process or redundancy consultation where the employee’s presence at work is deemed disruptive. Crucially, the right to place an employee on garden leave must be stipulated in their employment contract. Without a contractual clause, enforcing garden leave could be a breach of contract. It is not an automatic right for employers.

Key clauses and information required in a garden leave notice

A comprehensive garden leave notice should clearly outline the terms of the arrangement to avoid confusion or dispute. Essential information to include comprises:

• Employee and Employer Details: Full names and addresses of both parties.
• Effective Date and Duration: The precise start date and the expected end date of the garden leave period.
• Remuneration and Benefits: Confirmation that the employee will continue to receive their full salary, pension contributions, and any other contractual benefits.
• Duties and Restrictions: A clear statement that the employee is relieved of their normal duties and must not attend the workplace, contact customers, or access company systems.
• Return of Property: Instructions for returning company property, such as laptops, phones, keys, and passes.
• Confidentiality and Ongoing Obligations: A reminder of the employee’s continuing duty of confidentiality and any other post-employment restrictions.
• Point of Contact: Designating a specific manager or HR contact for any necessary communications during the leave.

How to fill out the garden leave notice template

Using a template provides a clear framework. To complete it effectively, follow these steps. First, insert the current date and the full details of the employer and employee. Second, specify the exact start date of the garden leave, which is often the date the notice is served or the following day. Third, explicitly state the duration, linking it to the contractual notice period. Fourth, detail the financial arrangements, confirming salary payments will be made as usual on the normal payroll date. Fifth, list all company property that must be returned and provide clear instructions for doing so. Finally, ensure the notice is signed by an authorised company representative and delivered to the employee, keeping a copy for your records.

Legal considerations and employee rights during garden leave

Placing an employee on garden leave involves several important legal considerations. As highlighted by guidance from ACAS (Advisory, Conciliation and Arbitration Service), garden leave must be handled fairly. The employee retains their employment rights. They continue to accrue holiday entitlement and must be allowed to take it or receive payment in lieu at the end of their employment. Employers must be cautious not to make the garden leave period excessively long, as this could potentially lead to disputes. Furthermore, the employee is still bound by their duty of fidelity and confidentiality to the employer.

Frequently Asked Questions about garden leave notices

What is garden leave in the UK, as defined by ACAS?

While ACAS does not provide a single legal definition, it describes garden leave as a situation where an employee leaving a job is asked to stay away from work during their notice period. They remain an employee, receive full pay and benefits, but do not carry out any work. ACAS guidance emphasises the importance of having a clear contractual clause to rely on.

What are the employee rights during gardening leave in the UK?

During garden leave, an employee maintains the right to receive their full salary and all contractual benefits, including pension contributions. They continue to accrue statutory entitlements like annual leave. They also retain rights such as protection from unfair dismissal. The employer remains responsible for the employee’s wellbeing as their employer.

How to put an employee on garden leave in the UK?

To lawfully put an employee on garden leave, you must first check that their contract of employment contains a valid garden leave clause. If it does, you should issue a formal, written garden leave notice specifying the start date, duration, terms, and conditions. This notice should be delivered directly to the employee, and it is good practice to discuss the situation with them beforehand where possible.

Is garden leave legal in the UK?

Yes, garden leave is legal in the UK provided it is enacted in accordance with the terms of the employee’s contract. If there is no contractual clause permitting it, imposing garden leave could constitute a breach of contract, potentially allowing the employee to seek remedies. Even with a clause, the period should be reasonable and not used in a manner that could be seen as punitive.

Effectively managing the departure of a key employee requires careful handling. A well-drafted garden leave notice provides a secure and legally sound framework for this transition. Download your Garden Leave Notice UK template now! to ensure you have a professionally formatted document that guides you through the necessary steps, helping to protect your business while respecting employee rights.