VIC Placed on Garden Leave...

[rexhvn]

Hi all,

I am after some advice and clarity if possible.

I recently resigned from job with an end date of 31st of January 2018. The business decided to place me on gardening leave and explained that I would be paid accordingly as though I am employed but not required to attend the office. Nothing was signed, just a letting explaining this. Today I received a phone call from my employer and was informed there is an administrative change and have decided to pay me out until the 31st of January 2018 as agreed.

Are they allowed to do this? I have concerns about a few things being tax implications (being taxed more as being paid in a lump) along with my current annual leave (will this be paid out?) and all the leave that would have been accrued.

I appreciate any assistance.

 

[Rod]

You don't get taxed more. It just comes out in one lump sum.

Their payout should include accrued and accruing leave as if you worked to 31 Jan 2018.

Look carefully at your last payslip.

As for whether they can pay you out rather than have you on gardening leave, I'm unclear. Suspect you need someone to read your employment contract/award/EBA. Why is this a concern?

If you need a good reference from them or use them as a referee it may not be worth aggravating them.

 

[rexhvn]

You don't get taxed more. It just comes out in one lump sum.

Their payout should include accrued and accruing leave as if you worked to 31 Jan 2018.

Look carefully at your last payslip.

As for whether they can pay you out rather than have you on gardening leave, I'm unclear. Suspect you need someone to read your employment contract/award/EBA. Why is this a concern?

If you need a good reference from them or use them as a referee it may not be worth aggravating them.

Thank you for your response. I received the payout and my employer confirmed that I am not entitled to any accrued leave as I am only entitled to annual leave from the last day physically worked and not until the 31st of January.

 

[Rod]

I suspect the employer is wrong but not 100% sure. There are some variables at play I don't have details on.

You need to decide what is more important - a good ex-employer and possible reference versus the extra money and an ex-employer with a bad attitude.

 

[Matthew Lynch]

Hi

You accrue 4 weeks paid annual leave for each year of service: s87.

Service is defined as the period during which you are employed, excluding any period of unauthorised absence or unpaid leave: s 22.

If you are on gardening leave you are still employed (you are restricted from being employed elsewhere). If the gardening leave is from 1 January 2018 to 31 January 2018 (and is authorised and paid), your last day of your year of service would be 31 January 2018 and your annual leave should be calculated to that date.

If you need assistance contacting your employer please let me know.

 

[Clancy]

I had never heard the term garden leave before so i googled it.

It means..... if you are put on garden leave it means your employer doesn't trust you - but that may not necessarily be personal or they don't like you to the extent that they prefer to pay you for doing nothing rather than endure your presence at work.