Garden leave keeps departing employees on payroll but away from the workplace during their notice period. The employee receives normal pay and benefits but cannot work for the employer or start new employment. It protects confidential information and customer relationships.
Purpose and Benefits
Garden leave serves several purposes: removing access to sensitive information before an employee joins a competitor, allowing time for customer relationship transitions, preventing disruption from a disengaged employee, and fulfilling notice obligations while managing risk.
Contractual Requirements
Garden leave typically requires an express contractual provision. Without explicit authority, putting an employee on garden leave might breach the implied duty to provide work. Contracts should specify that the employer can require garden leave and define its terms.
Duration Considerations
Garden leave is limited to the notice period. Longer notice periods enable longer garden leave. Some countries may restrict enforceability of very long garden leave periods. The period should be proportionate to the legitimate interests being protected.