Garden Leave

Garden Leave is a practice where an employer requests an employee who is leaving the company to stay away from work for a certain period, typically the notice period, while still being paid. During this time, the employee is usually prohibited from working for a competitor.

Example #1

An employee gives notice to resign from their current job. Instead of working during the notice period, the employer asks them to stay home and not come to the office. The employee continues to receive their salary and benefits during this time.

Example #2

After resigning, an employee is placed on garden leave for three months, during which they are not allowed to join a similar business to avoid sharing confidential information with competitors.

Misuse

Misuse of garden leave can occur when employers misuse the practice to prevent employees from working for competitors even when the restrictions are unreasonable or unjustified. This can limit the employee's ability to find new employment and may lead to financial hardship. It's important to protect against misuse of garden leave to ensure fairness and respect for employees' rights.

Benefits

One benefit of garden leave is that it provides a period of separation between the departing employee and the company, reducing the risk of the employee sharing confidential information with competitors. It also allows the company time to adjust to the employee's departure without immediate disruption.

Conclusion

Garden Leave can be a valuable tool to protect a company's interests when an employee leaves, but it should be used fairly and reasonably. Protecting against misuse of garden leave is crucial to ensure employees are not unfairly restricted in finding new opportunities. It's essential for employers to respect employees' rights during this period.

Related Terms

Non-Compete AgreementEmployment Contract