Gardening Leave

“Gardening leave” is a term commonly used in employment and labor relations, particularly in the UK. It refers to a situation where an employee who has resigned or been terminated is instructed to stay away from work during their notice period, but continues to receive their regular salary and benefits. Here are some key points about gardening leave:

  1. Purpose: The primary purpose of gardening leave is to protect the employer’s interests, particularly in industries where an employee’s departure could mean a transfer of sensitive information, client relationships, or proprietary knowledge to a competitor.

  2. Employee Status: While on gardening leave, the employee remains on the payroll and is technically still employed by the company. This means they are generally bound by their contractual obligations, such as confidentiality agreements and non-compete clauses.

  3. Duration: The duration of gardening leave can vary, but it typically lasts for the duration of the employee’s notice period, which can be anywhere from a few weeks to several months, depending on the terms of the employment contract.

  4. Restrictions: During gardening leave, employees are usually restricted from commencing employment with a new employer, particularly if the new employer is a competitor. They may also be restricted from contacting clients or colleagues about their new role.

  5. Activities: Although the employee is not actively working for the employer, they might be asked to perform minimal duties from home, such as handing over projects or providing occasional advice. However, they are generally free to use their time as they wish, such as pursuing personal interests or literally gardening, which is where the term “gardening leave” comes from.

  6. Legal Aspects: The specifics of gardening leave are often detailed in the employment contract. Both parties must adhere to these terms. Any breach by the employee could result in termination of the salary and benefits. Conversely, misuse of gardening leave by the employer could lead to legal disputes.

  7. Implications for the Employer: While it ensures protection of sensitive information, gardening leave can be costly for the employer as they are essentially paying for an inactive employee. Nevertheless, it can be a strategic move to safeguard business interests.

If you are an employee who has been placed on gardening leave, it’s essential to review your employment contract and understand your rights and obligations during this period. Similarly, employers should ensure that the terms of gardening leave are clear and legally enforceable.