What Is Gardening Leave?

Garden leave is a period of time during which an employer retains an employee’s contractual right to pay their salary and other benefits despite them not working for the company. This is often used to protect the business from a departing employee sharing confidential information, trade secrets, or client lists with a competitor prior to their departure, but it can also be used to ensure that the company can find a replacement for the position in question and to facilitate a smooth transition for colleagues and clients.

The main drawback of implementing gardening leave is that it can be expensive, with the employer continuing to pay an employee during a period when they are not generating any work. This is especially the case for senior employees who have a high salary, but even lower-paid employees can cost an organization money in terms of their ongoing salary and other benefits. This is why it is important to carefully consider the risks and costs involved before deciding whether or not to use garden leave.

Typically, the length of time that an employee is placed on garden leave will be set out in their contract of employment. However, this is something that can be negotiated, and it can be beneficial for both parties to agree to a different term than what is set out in the contract to avoid legal uncertainty.

Employers must also be careful when imposing this policy, as it may breach employee rights in some jurisdictions or under certain employment agreements. Moreover, the length of garden leave must be limited to what is reasonably necessary to protect the company’s legitimate interests.

It is not uncommon for an employer to place a highly-paid employee on a period of garden leave if they are terminating their employment or being made redundant. It is generally agreed between the employer and the individual that they will not attend work or interact with colleagues during this period, although some companies have policies whereby employees on garden leave can be contacted by phone for essential matters, such as to provide them with information or support.

It can also be useful for an employee to be on garden leave as it gives them a chance to find a new job without having to immediately focus their efforts on searching and interviewing, and it can allow them to complete projects and handover duties before their final day at the company. This can help them to leave on good terms and maintain a positive professional reputation, while it allows the employer to have time to find a suitable replacement. However, this can be a stressful time for the employee and can affect their mental health and well-being, particularly if they are worried that they will be out of a job with little or no pay. For this reason, employers should always discuss an employee’s desire to be on gardening leave with them, making sure they are aware of the implications.