Topic > gardening leave - 870

Gardening leave is a clause that can be interpolated into an Employment Contract. In essence, this clause provides that in the event of termination of the employment relationship, the employee can be informed to abstain from work during the notice period, while remaining permanently on the company's payroll. This can occur if the employee resigns or their employment is terminated. In this essay I will look at how this concept can benefit an employer, but also what rights the employee has when dealing with the latter. Benefits of Garden Leave for the Employer The first and most important advantage of Garden Leave for the employer is that, by including this clause in an employment contract, his legitimate interests are protected, in particular if the said employee leaves for join a competitive company. This may mean that the employee would be forced not to attend the work premises. It would also prevent the employee from coming into contact with any member of the employer's staff or customers. In essence, this gives the employer the right to maintain a defined balance of power, as the employee is still bound to comply with established contractual obligations. For example, they may be bound by an obligation of confidentiality. It can also be beneficial to the employer as it can prevent the employee from accessing information of a sensitive nature. It is essential to note that the employer can require the employee to return to work at any time during their gardening leave. It should also be noted that the employer is also obliged to comply with their contractual obligations, which means they must still provide full pay and benefits to the employee on gardening leave. The case of JM Finn & CO LTD v Holliday i... ... middle of paper ... reliability with their dealings and one who has demonstrated strong levels of commitment in transitioning their business to another accredited member of the business. Another case in which Garden leave is advantageous for the employer are cases in which managers or individuals with executive functions have access to the company's strategic plans. It could be argued that high wages could act as a deterrent to avoid having to resort to gardening leave clauses in the first place. Ethics suggests that even former employees are bound by a duty of confidentiality to refrain from disclosing the company's confidential information. However, common sense would dictate that this cannot be widely relied upon. It is in this regard that gardening leave could be a useful tool to delay the competitor from making use of the resigning employee's credible knowledge and skills..