Employment:Garden Leave

February 27, 2014

The case of J M Finn Limited v Holliday is the most recent case to grapple with the vexed concept of garden leave, and what duration may be reasonable.

On the facts the Court granted an injunction for the full 12 month prohibition period thus preventing the employee from joining his new employer before its expiry.  The case raised some interesting procedural points, but it is also clear that such lengthy prohibitions, which some employment advisers considered excessive, and likely to be incapable of enforcement, may well be upheld by the Court.  In this case the notice period and the garden leave provision ran simultaneously, and no doubt that the relatively lengthy of time it takes to develop a reputation as a stock broker, influenced the Judge in her decision.