Garden leave is a term not many are aware of - and few employers use it to their full potential
Garden leave is a term that not many people are aware of. Employees are confused by it and few employers use it to its full potential.
Garden leave can be used when an employee has resigned, been dismissed, or made redundant. When an employer uses garden leave, the employee is contractually retained but they are no longer required to perform the tasks and responsibilities of their role.
Garden leave greatly benefits employers. Enforcing gardening leave removes the employee from involvement with day-to-day company activities until their employment contract ends, it restricts an employee from taking up a role with a competitor company, it minimises client poaching and limits the amount of new or sensitive information they are exposed preventing leaks of confidential information.
Employees on garden leave are still employees. They receive full pay and benefits, and the company pays their final salary on the last day of employment stated in their notice period.
Garden leave is usually the same amount of time as the companies notice period. Ensure it is a reasonable amount of time to fully protect the employer, but you may run into legal issues if you extend the leave beyond the notice period.
There could also be legal issues if you use garden leave in the absence of contractual entitlement goes against the right to work of an employee and can be a breach of employment contract.
To minimise legal issues make sure you have a garden leave clause in the employment contract that clearly explains how the process and effect of using the leave would go.
