What is Garden Leave?
Garden leave is a period during which an employee who has resigned or been dismissed stays away from work while still remaining on the payroll and receiving their salary. This practice helps employers protect sensitive company information and maintain security during transitions. It is especially relevant in competitive industries and fits into the employee lifecycle at the exit or notice stage.
Why Employers Use Garden Leave
Employers use garden leave to prevent employees from immediately joining competitors and to limit access to confidential information. It ensures a smoother handover of duties and maintains business security. This protection helps safeguard client relationships and intellectual property.
How Garden Leave Works in Practice
The employee remains on payroll but is usually not allowed to work or contact clients. The duration depends on contract terms and notice periods. Employers often include garden leave clauses in contracts and actively monitor compliance to prevent breaches.