What is the date of termination of an employment if an employee is (a) put on garden leave and (b) paid in lieu of their notice period? Is an employee entitled to receive all benefits he/she would have been entitled to if they continued working if that employee is paid in lieu of notice or is it acceptable to limit the pay in lieu of notice to basic pay only i.e. excluding bonus, commission or pension contributions or benefits in kind?

Posted in : First Tuesday Q&A NI on 5 August 2014
Arthur Cox
Arthur Cox
Issues covered:

When an employer decides it wishes an employee to leave it often wants them to stop working immediately.

In this case it has two options: the employer can either summarily terminate the employment and make a payment in lieu of notice (PILON), or it can place the employee on garden leave.

The right to do either will depend upon the wording of the employee's contract of employment. Some contracts of employment contain an express power for the employer to place an employee on what is known as garden or gardening leave.

This means that the employer gives the employee proper notice of termination in accordance with the contract of employment, and the employee receives all their salary and

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Back to Q&A's This article is correct at 02/09/2015

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Arthur Cox
Arthur Cox

The main content of this article was provided by Arthur Cox. Contact telephone number is +44 28 9026 2673 or email rosemary.lundy@arthurcox.com

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