Workers leaving: the basics

Contractual matters when employment ends

Employment contracts will contain provisions relating to the termination of the contract. In addition to notice periods, these may include:

• any date set for retirement
• whether pay can be given in lieu of notice
• requirements as to references

Restrictive covenants

Some businesses also put restrictive covenants in the contract of employment. These are designed to protect a business' confidential information, trade secrets and customer connections by restricting employees from disclosing, using, soliciting or dealing with them during a specified period after leaving the business.

It is a good idea to take advice from a solicitor before drawing up such restrictive covenants or other clauses to ensure they will be enforceable.

Garden leave

Some employers ask employees who are dismissed or who resign to work out their notice but not to come into the workplace. This is known as "garden leave". The employee stays on the payroll and is still employed. For more information, see our guide on how to issue the correct periods of notice.

If you want to be able to rely on garden leave as a means of retaining control over the employee during the notice period, it is advisable to include an express clause in the employment contract permitting this. See our guide on the employment contract. Any period of garden leave should be taken into account when you decide on the duration of restrictive covenants.

Subjects covered in this guide

• Introduction
• The process to follow when a worker leaves
• Notice periods
• Providing references
• Contractual matters when employment ends
• Long-term absences

 

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