Garden leave

Case 6: The facts

Mr Boudrais and his colleague were senior employees of an international consulting company. Soon after they handed in their resignation, the company discovered evidence indicating they were secretly planning to join a competitor and were collecting confidential information. They were immediately placed on garden leave, whereupon they resigned forthwith, alleging the company’s actions constituted breach of contract. The company applied to the High Court for an interim injunction preventing them joining their competitor for the duration of the notice period. The issue arose as to whether the company was contractually entitled to place them on garden leave.

The ruling

The High Court found there was no express right in their contracts to place Boudrais and his colleague on garden leave. However, there was an implied contractual right to impose such leave. The Court did accept the employees had an implied right to work because they had significant skills in a specialised area, they held senior positions, and they had a right to a large discretionary bonus which would be adversely affected if they didn’t work. But they had forfeited the right to be provided with work because of their wrong-doing in taking confidential information to a competitor and because their behaviour indicated they were not ready and willing to work. The High Court further decided to grant the interim injunction.