SG & R Valuation Service Co v Boudrais & Ors [2008] EWHC 1340 (QB) (12 May 2008)

SG & R Valuation Service Co v Boudrais & Ors [2008] EWHC 1340 (QB) (12 May 2008)

Absent an express contractual provision, an employer cannot place employees on garden leave unless the employees' conduct constitutes a serious breach of duty such that they are not ready and willing to work; in such circumstances, the employer is not in repudiatory breach by requiring them to remain at home during...

Source-derived case information.

Citation
[2008] EWHC 1340 (QB)
Parties
Claimant: SG & R Valuation Service Co; First Defendant: Dominic Boudrais; Second Defendant: Karen Smith; Third Defendant: Mark Finney; Fourth Defendant: Collier CRE plc; Fifth Defendant: Related company of Collier CRE plc
Jurisdiction
England and Wales
Judgment Date
12 May 2008
Procedural Posture
Interim Application for Injunctive Relief in Employment Dispute / Return Date Hearing on Interim Relief
Outcome
Interim relief granted in favour of the claimant; employees required to remain away from work during notice period; application for destruction order against fourth and fifth defendants refused.
Legal Topics
Garden Leave, Right to Work, Suspension of Employees, Breach of Fiduciary Duty, Confidential Information, Springboard Injunctions, Notice Periods, Restrictive Covenants
Employment Law Contract Law Garden Leave Right to Work Suspension of Employees Breach of Fiduciary Duty Confidential Information Springboard Injunctions +2 more

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Parties

SG & R Valuation Service Co

Claimant

Dominic Boudrais

First Defendant

Karen Smith

Second Defendant

Mark Finney

Third Defendant

Collier CRE plc

Fourth Defendant

Related company of Collier CRE plc

Fifth Defendant

Procedural Posture

Interim Application for Injunctive Relief in Employment Dispute / Return Date Hearing on Interim Relief

Legal Issues

  1. 1 Whether an employer can place employees on garden leave absent an express contractual provision
  2. 2 Whether the employees have a right to work during the notice period
  3. 3 Whether the conduct of the employees constituted a repudiatory breach of contract

Ratio Decidendi

Absent an express contractual provision, an employer cannot place employees on garden leave unless the employees' conduct constitutes a serious breach of duty such that they are not ready and willing to work; in such circumstances, the employer is not in repudiatory breach by requiring them to remain at home during the notice period. The employees' conduct in this case justified the employer's actions, and interim relief was appropriate.

Court Disposition

Interim relief granted in favour of the claimant; employees required to remain away from work during notice period; application for destruction order against fourth and fifth defendants refused.

Orders

  • First and second defendants to remain away from work until expiry of notice period; undertakings to pay salary and not to solicit employees continue.
  • Application for destruction of confidential information by fourth and fifth defendants refused.