Naturally, you can expect to be paid your usual salary while on gardening leave, but if you usually receive commissions or performance-related bonuses, these may not be paid. Where you have a company vehicle, it’s common for your employer to request its return at the start of your garden leave.
Is gardening leave the same as PILON?
you’re paid as usual until the end of your notice period, but you don’t have to come to work – this is called garden leave. you get all your notice pay at once and your job ends straight away – this is called pay in lieu of notice, or PILON.
Do I have to agree to PILON?
Without advance agreement to a PILON, making one is technically a breach of contract which can result in you losing the right to rely on any other parts of the contract yourself, such as post-termination restrictions or confidentiality protections. Furthermore, the employee will have legal rights to claim against you.
Can you force gardening leave?
Unless your contract of employment includes a gardening leave clause, your employer will not normally be able to enforce gardening leave – without potentially putting themselves in breach of contract, which could mean, in effect, that you have been dismissed immediately and can start your new job straight away.
Can you refuse PILON?
If the employment contract does not provide for PILON, the employer would generally not be able to terminate the contract with immediate effect without the notice period and they may be in breach of contract for dismissal with pay in lieu of notice.
Should PILON be paid immediately?
Where you don’t have any provision for PILON you should pay all pay and benefits that would have accrued over the notice period. PILON should normally be made immediately on termination of employment.
How do you negotiate a garden leave?
If your company offers gardening leave, then it’s because you’re likely capable of taking a client with you when you move. If you cannot do this, you can negotiate gardening leave if you offer to take one month’s pay instead of, say, 2 months (ie your notice period is 2 months.
Can a Pilon payment be used as garden leave?
An employee who receives a PILON payment does not have a notice period and is free to go straight into other employment. An employee on garden leave is technically still employed. So, they can claim the same rights and pay, even though they may not be present.
When to use garden leave and pay in lieu of notice?
When an employee leaves your company, either due to redundancy or dismissal, there is plenty of scope for confusion, confrontation and miscalculation. Understanding the ins and outs of PILONs and garden leave is the first step to ensure you and your employees don’t suffer during the notice period. What is garden leave?
Can a Pilon employee terminate after a set notice period?
However with PILON, if there is no specific right to terminate immediately in this way, you are breaching the contract by not allowing someone to continue in employment for the duration of their set notice period. This may have an impact on the amount of holiday they accrue, for example, or on contractual benefits they may have been entitled to.
Why do employers use the garden leave period?
Garden leave is commonly used by employers as a way of protecting themselves and their resources from you when you are leaving employment. They may be worried that you will use your notice period to acquire information to take with you when you finally leave.
