Garden Leave is a clause that may be inserted in a contract of employment which means that an employee is prevented from working for a competitor for a stated period of time or within a particular area after leaving their job. This can sometimes be invoked where an employee is not working his/her notice but is still being paid by the employer.
Employers need to make sure that they do not make the conditions of Garden Leave too restrictive as happened in the case of Octavio Hernandez v Vodafone Ireland limited where the employee successfully appealed his case to the High Court.
The court held that Vodafone had wrongfully prevented him from taking up employment with O2 as this impacted on him having a continuous income to provide for his family.
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