What is garden leave?

Garden leave, also known as gardening leave, is a practice that occurs after an employee has resigned or been terminated. The individual remains legally under contract and continues to receive their salary and benefits.

Who is given garden leave?

Employers may place departing team members on garden leave if their departure risks exposing sensitive business information to competitors. This practice is most common for senior leaders, executives, or directors with access to high-level data. Garden leave can also be used when continued interaction with colleagues or clients might lead to poaching risks.

How long is a garden leave period?

HR teams consider a person’s level of seniority and employment contract when determining their garden leave period. The duration of garden leave can be a few weeks for junior team members and a few months for senior management. For top-level executives such as a chief operating officer (COO), the garden leave period can last up to a year.

What are an employee’s rights during garden leave?

Team members on garden leave have the right to receive their full salary and contractual benefits, including pension, retirement, accrued allowances, and vacation time.

Is garden leave legal?

Garden leave remains legal in most countries, provided organizations comply with specific legal requirements. Organizations can only implement garden leave when the person’s employment contract includes a clause permitting it.

Is garden leave a bad thing?

Garden leave is not bad when organizations effectively implement and manage it. When done thoughtfully, with transparency and clear communication, it can protect the company’s interests and allow your people to relax or try out new things while receiving a salary.

Are you still paid on garden leave?

Yes, organizations pay leavers their full salary during garden leave. The person will also have access to all existing employee benefits, such as health insurance, wellness programs, and pensions.

Can you start a new job on garden leave?

No, you cannot start a new job on garden leave. During the leave period, the team member is still an employee of the company and is not permitted to work for another employer.

What is the difference between garden leave and severance?

Severance involves a one-time payment provided after employment termination, typically as compensation. Organizations opt for garden leave instead of severance if there’s a risk that someone leaving the company may engage in actions or behaviors harmful to the business.