How Do I Handle Leave In Lieu Of Notice Or Garden Leave?

Leave in lieu of notice, often called garden leave, is an agreed period where the employee remains employed and is paid but does not attend work. It is different from paying notice in lieu after employment ends.

1. If the employee remains employed during the notice period, keep paying ordinary earnings through the pay run or use a custom paid leave/pay item for reporting.
2. Do not deduct annual holidays, sick leave, family violence leave, bereavement leave, or alternative holidays unless the employee is actually taking that statutory leave.
3. Use the real final employment date in the termination workflow so annual holidays, public holidays, and final pay are valued to the correct date.

If the employer is paying notice in lieu as an end-of-employment lump sum instead, process it as final pay/termination pay, not as leave taken.