Walked off the premises

[puggit]

I've just been talking to a recruitment consultant about a job with a competitor.

The conversation turned to start dates, and I indicated that my company have a habit of escorting people from the premises if they leave for a competitor. The recruitment guy then said that your final month's salary would be tax free in this situation, as it's equivalent to gardening leave.

Anyone able to enlighten me? :D

[pdV6]

puggit said:

it's equivalent to gardening leave

[pedant]Being told to go home at full pay is garden leave.[/pedant]

Didn't realise it was tax-free though...

[havoc]

AFAIK, garden leave isn't tax free - it's still considered employment, but the current employer has decided to pay you for staying at home.

[T5-R]

puggit said:

my company have a habit of escorting people from the premises if they leave for a competitor.

Bit of a heavy handed approach, isn't it? You can always lie about where you're going, or opt not to tell them.

[Eric Mc]

Why should it be tax free?

It's ordinary salary taxed in the normal way.

[puggit]

T5-R said:

puggit said: my company have a habit of escorting people from the premises if they leave for a competitor. Bit of a heavy handed approach, isn't it? You can always lie about where you're going, or opt not to tell them.

It's a cut throat industry, I'm in technical sales and know future developments.

Better out then in

And a month paid to sit in the garden - sheesh!!!

[Fer]

puggit said:

And a month paid to sit in the garden - sheesh!!!

But you are not allowed in the house!

I don't think that it is tax free, unless it is redundancy of some sort.

[Don]

Its not tax free and its been standard practice for a long, long time.

Clear your desk the day before you spill the beans to your manager. And do the deed first thing in the morning - might as well get paid to go home instead of having to work for the day...

Keep nothing at work you would mind losing during the last few days/week anyway.

Try and leave on a good note. Be honest about where you are going and what you are doing and thay you fully expect to need to leave immediately but state that you are more than willing to work out whatever part of your notice they require you for...chances are they'll march you out but you never know...I once did a handover lasting two days a colleague - which I did honestly.

Its nice if you leave with them saying, "And if you want to come back let us know" rather than "never darken this door..." etc etc

[steviebee]

Many employers try to enforce a trade restraint clause in employment contracts - particularly in sales roles. However, this has been proven in law to be uneforceable as it prevents an individual from working which no company is allowed to do.

Gardening leave is exactly that ; "leave". The person is still employed by the company and so cannot solicit business from their clients for other companies during the "leave" period.

It's a month off work that is still taxable.

If a company, upon being handed notice from an employee, decides to write a cheque there and then for the month's pay without taxing them, it is considered severance. The employee is free to approach clients the minute they leave the premises.

[Antwerpman]

I always wondered what would happen in such a company if you gave them 2 months notice (contracts usually only state a MINIMUM of 1 month)

Could then then fire you and give you a months notice? I think it would be hard to do as they would have to go through the formal discipline procedure etc, and as you are 'completely willing' to work out your notice even though you are going to one of their major competitors, then they cant get you for that.

In such circumstances would they then have to pay you 2 months gardening leave to get you out the door?....just a though

2 month R&R fully paid for and time to play with your cars sounds like a good deal to me

[steviebee]

Antwerpman said:

Could then then fire you and give you a months notice? I think it would be hard to do as they would have to go through the formal discipline procedure etc, and as you are 'completely willing' to work out your notice even though you are going to one of their major competitors, then they cant get you for that.

They can only fire you if you have breached your contract of employment.

Antwerpman said:

In such circumstances would they then have to pay you 2 months gardening leave to get you out the door?....just a though 2 month R&R fully paid for and time to play with your cars sounds like a good deal to me

Yep! Whatever your notice period is, that is the length of time you are put on gardening leave. It sounds like a good deal but in reality, 2 months is a long time and much can happen. So if you go from one company to another hoping to pick up on old clients, deals by then may well have been done during your gardening period and you'll be amazed ay how quickly some suppliers are forgotten by clients!

Also, your previous employer has two months to ensure that clients remain with them.

[havoc]

Antwerpman said:

I always wondered what would happen in such a company if you gave them 2 months notice (contracts usually only state a MINIMUM of 1 month)

They'd enforce the term in your contract which entitles them to accept from you only the minimum notice period. I've not been to a company yet which doesn't have this in the employment T&Cs...either an entitlement to vary the notice period given down to the minimum, or a counter-entitlement to give YOU notice once you've handed your notice in.

If you gave your employer 2 months notice, they'd either:-
- Accept that and keep you working;
- Turn around and say "no, we only need 1 month from you thanks, your leaving date is __ ____ ____";
- Turn around and give you 1 month's garden leave.