What is the date of termination of an employment if an employee is a) put on garden leave and b) paid in lieu of their notice period. Is an employee entitled to receive all benefits he/she would have been entitled to if they continued working if that employee is paid in lieu of notice or is it acceptable to limit the pay in lieu of notice to basic pay only i.e. excluding bonus, commission or pension contributions or benefits in kind?

Posted in : First Tuesday Q&A ROI on 6 August 2014
Zelda Cunningham
Arthur Cox
Issues covered:

"Garden Leave" is where an employer requires an employee to work out all or part of their notice period at home. During this time, an employee is not required to attend work but they remain on the payroll and in employment until their notice period expires. In this situation, the termination date is the date the notice period expires. The length of notice will usually be set out in the employee’s contract of employment or if the contract does not provide for a notice period, the employee will be entitled to the relevant statutory minimum notice period under Section 4 of the Minimum Notice and Terms of Employment Act 1973-2011.

Regarding pay in lieu of notice (“PILON”), the general principle

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Back to Q&A's This article is correct at 02/09/2015

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Zelda Cunningham
Arthur Cox

The main content of this article was provided by Zelda Cunningham. Contact telephone number is +353 1 618 0000 or email zelda.cunningham@arthurcox.com

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