Garden Leave Letter
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What is a gardening leave letter template in the UK?
A garden leave letter is an official notice sent to the employee to suggest their placement on fully paid leave during the duration of the notice period and till termination of employment relations. In the UK placement of employees on garden leave is common for senior-level employees or employees having access to commercially sensitive or confidential information.
In the UK, the employee can be placed on garden leave in two different cases:
- First, if the provisions of the original employment contract provide so; or
- Second, when the parties agree on it in writing.
This employee garden-leave letter template can be used for both case situations.
When should employers use garden leave?
Even when an employee is leaving permanently, UK employers may place them on garden leave for the following reasons:
Competitive Risks
If the employer believes that after termination of employment:
- The employee will start their own business competing with the employer’s;
- The employee can co-found or consult for other competing businesses; or
- The employee will be employed by a third-party competitor.
Then the employer may decide to put such an employee on gardening leave.
Protection of Confidentiality
Another reason employers choose to place employees on garden leave is that, in the course of the employment, the employee has had access to sensitive or confidential information. An employer may use gardening leave to protect such information against the potential disclosure. During the garden leave, employees cannot undertake other employment roles, which significantly decreases the likelihood of disclosure.
What should this employee garden leave letter template include?
A standard garden leave template must include the following essential elements:
General Information
The letter must outline the full name, business address and contact person from the employer’s side, as well as the full name of the employee.
It is common to also include the reason for termination, the date on which the termination notice was filed and the suggested last working day.
Salary & Benefits
A gardening leave letter template UK should explicitly confirm that the employee remains entitled to the whole amount of their normal salary which they would normally receive should they continue working with the employer.
On top of that, the employee may have a right to retain certain benefits, such as the company’s insurance, paid gym, paid dentist appointments, etc.
At the same time, the employee cannot continue to receive any additional bonuses or commissions on top of their normal salary. This is so because the employee does not actually perform any working duties during the period of the gardening leave.
Access Removal
Depending on the circumstance of termination of employment and personal relations between the parties, the employer may impose additional restrictions, including:
- to prohibit communication with certain employees, staff or workers;
- to remove access to the internal databases, working mail, pass cards, etc.;
- to demand the return of all the company’s property, such as laptops, mobile phones, etc.
Post-Termination Restrictions
If the original employment contact obliges the employee to follow certain additional post-termination obligations, it is recommended to include this information in the text of this letter. The post-termination restrictions may include:
- signing a non-disclosure agreement;
- signing non-compete agreement;
- signing a non-solicitation agreement, etc.
What are the benefits of using a garden leave letter template?
By customising this letter template with FasterDraft, you get the document with the following benefits:
- a fully customisable garden leave letter in PDF and Word;
- a letter that is in line with ACAS guidance on garden leave and the Employment Rights Act 1996;
- a letter that is suitable for use by different businesses across Great Britain;
- a letter created by qualified solicitors and never by AI;
- a document that entails best HR practices on placing employees on garden leave in the UK.
Who should use this gardening leave letter template?
This garden leave letter template can be a helpful legal tool for:
- HR teams searching for an ACAS-compliant template;
- startups willing to place their employees on gardening leave in line with UK employment laws;
- SMEs without an in-house lawyer searching for a ready-made template;
- UK employers searching for an editable and fully customisable garden leave template letter for instant use.
This letter template cannot be used to notify employees about general termination of employment relations or termination due to redundancy.
How to customise this garden leave template letter with FasterDraft?
To get a fully customisable letter template, follow a few easy steps below:
- Click the “Create Document” button.
- Answer simple questions in the form.
- Select a template’s format – a garden leave letter template in PDF or Word.
- E-sign the letter online for free.
- Make a payment.
The letter is ready for download immediately after the purchase. After the download you can use this letter template right away to notify your employees about gardening leave in a compliant and professional manner.
Table of content
Frequently Asked Questions (FAQ)
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1. Does an employee still get paid during garden leave?
Yes, once the garden leave letter is signed, the employee becomes entitled to the whole amount of their monthly pay, including all additional benefits, bonuses and commissions they usually receive.
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2. How long can garden leave last in the UK?
UK employment laws do not define maximum or minimum duration of the gardening leave. The average duration can last between one and 6 months depending on the role and industry the employee is currently employed in.
If the duration of the garden leave has not been agreed upon in the original employment contract, parties can negotiate its duration during the period of employment or in the process of its termination.
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3. What is the difference between garden leave and redundancy?
Redundancy is one of the reasons due to which employment relations terminate. This is an advance notice that is being sent to the employee according to the Employment Rights Act 1996. Once the employee is redundant, they can search for a new job and sign employment contracts with third parties.
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4. Can an employee work elsewhere during garden leave?
Gardening leave does not amount to termination of employment relations between the employee and employer.
According to the UK employment law, the employee’s employment continues for the whole duration of the gardening leave. An employee has the right to search for work and submit their resumee, however he or she cannot sign an employment contract with any third party before the end of the current employment relations.
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5. What happens to company property during garden leave?
During the garden leave, employees may still be required to perform some of their job duties upon the employer’s separate request. If this is a case, the employee may keep all the necessary equipment for the period of the garden leave. However, before the agreed end date of the gardening leave period, the employee is obliged to return property back to the employer.
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