Garden leave: 12-month restriction upheld by High Court

By Katy Meves

The High Court has granted an injunction to keep an employee on garden leave for the whole of his 12-month notice period. The recent decision in JM Finn & Co Ltd v Holliday demonstrates that garden leave clauses can be a very helpful tool for an employer dealing with an employee who wants to join a competitor.

Garden leave clauses are commonly found in employment contracts, particularly those of senior employees, and expressly allow an employer not to provide the employee with any work and to require them to stay away from business premises and customers during any notice period. This should be coupled with an exclusive service clause that prevents an individual from working for anyone else during his or her employment with the employer.

Without such an express power to isolate an employee in this way, an employer’s action in not providing him or her with work may be regarded as a breach of contract entitling the employee to resign and claim constructive dismissal…

If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Shoosmiths

View more briefings from Shoosmiths

Analysis from The Lawyer

  • Hester: declined bonus worth almost £1m

    Pay checks

    Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future

  • high street 150

    Focus: Alternative business structures - Law and new order

    There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…

Overview

2 Colmore Square
38 Colmore Circus Queensway
Birmingham
B4 6BJ
UK
http://www.shoosmiths.co.uk

Turnover (£m): 92.98
No. of lawyers: 393