Understand garden leave entitlements, pay continuation, benefit protection, and restrictive covenant enforcement. Learn how William Hill v Tucker case law applies to your situation.
Garden leave is when an employer places you on leave (paid time off) instead of allowing you to work out your notice period. Garden leave must be in your contract or agreed in writing to be valid. While on garden leave, you continue receiving full pay, bonuses, commission (if contractual), and all benefits (health insurance, pension). You are still an employee and have full employment rights. If your employer doesn't pay full wages during garden leave, or stops paying benefits, you can claim at tribunal as an unlawful wage deduction. William Hill v Tucker (1998) establishes that garden leave can enforce restrictive covenants (non-compete clauses) but only if the pay and benefits are uninterrupted. Interest of 8% per annum applies to unpaid garden leave wages.
Review employment contract, offer letter, and staff handbook for garden leave clause. Check: (1) Is garden leave mentioned and when can it be used? (2) What is the duration? (3) Does it say you receive full pay? (4) Does it mention benefits continuation? Garden leave must be contractual or mutually agreed. Without a clause, employer cannot unilaterally place you on garden leave - you have a contractual right to work.
Calculate your full salary for the garden leave period (weekly or monthly rate × weeks on leave). Include any bonuses or commission due contractually. Identify any benefits not paid (health insurance premium, pension contributions, share scheme). Add 8% interest per annum from the first day of garden leave. Example: £2,000/month salary for 3 months garden leave = £6,000. Plus £300 missing health insurance = £6,300 claim.
Send formal written demand for unpaid wages, bonuses, and benefits restoration for entire garden leave period. Calculate with 8% interest from first day of leave. Give employer 14 days. If refused, file ET1 claim at Employment Tribunal (free) claiming unlawful wage deduction and breach of contract. Tribunal will order full payment. Under William Hill v Tucker, if employer used garden leave to enforce restrictive covenant but didn't pay full wages, the whole arrangement is unenforceable.
You were placed on 3-month garden leave at 50% pay. Contract requires full pay during garden leave. Claim £2,000/month × 3 × 50% shortfall = £3,000 plus 8% interest. Employer cannot reduce pay during garden leave - wages must remain unchanged. File tribunal claim for unlawful wage deduction.
Employer stopped health insurance premiums (£100/month) during 6-month garden leave. Contract requires benefits continuation. Claim £600 (6 months × £100) restoration of coverage. This is breach of contract and unlawful deduction. Employer must pay premiums and/or reinstate coverage with back-payment.
Employer placed you on garden leave without any contractual basis. This is unlawful - employer cannot unilaterally impose garden leave without contract clause. You have right to work notice period or can resign and claim constructive dismissal. Claim lost wages for entire garden leave period.
Employer placed you on 2-month garden leave to enforce non-compete clause but only paid 70% salary. Under William Hill v Tucker, covenant is unenforceable without full pay. You can breach non-compete (join competitor) without penalty. Claim 30% unpaid wages plus 8% interest and damages for breach of contract.
Your contract promises annual bonus. You were placed on garden leave for 2 months before year-end. Bonus is not paid because you were on leave. Illegal - bonuses are contractual wages. Claim full annual bonus even if on garden leave, plus 8% interest from when bonus was due.
Employer stopped contributing to your pension during 4-month garden leave. Pension is a benefit and must continue. Claim: (4 months × your monthly contribution + employer match). Employer must also restore your pension savings and calculate lost growth on missed contributions.
Use FightingBack's Wages Checker to calculate garden leave arrears and file a tribunal claim.
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