What is garden leave

The maximum period of garden leave must normally be no more than about six months. If the notice period is longer than six months then check whether the contract allows you to start the garden leave part-way through notice, so the maximum is not exceeded. The reasonableness of garden leave must be considered alongside any post-termination restrictions , so consider the overall period of restriction. If the total period is too long then you will have to choose between using garden leave and the post-termination restrictions.

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Overview: What is garden leave in Australia? What is garden leave in Australia? Why do they call it gardening leave? Advantages of a gardening leave clause The purpose of a garden leave clause in a contract is four fold; It protects the best business interests of the employer. It provides for confidential information to remain safely in the hands of the employer. It creates a limited period of time during which the ex-employee cannot work for a competitor. In the event that the disengagement is due to a hostile situation, it allows for both parties to separate while not creating financial hardship for either.

Why employers use gardening leave clauses All of these protections are valid and often necessary for employers who allow employees access to confidential business information, exclusive suppliers, financial assets and growth plans. These obligations include; You cannot attend the workplace You cannot continue to perform any activities that were previously your responsibility You can only participate if requested to do so by your employer You must remain available to your employer to allow for transitional issues to be addressed You must still abide by the existing terms of your employment contract You may be unable to take another position with a new company if it directly competes with your ex-employer You may be prohibited from engaging in any other form of employment for the duration of the garden leave Can I go on holiday whilst on garden leave?

Can I start work while on gardening leave? While the name gardening leave may sound pleasant—and in fact, an employee may sometimes prefer to serve their notice time relaxing at home rather than being in the workplace—the restrictive nature and negative implications of this leave can make it less than ideal.

The garden leave helps protect an employer's interests when an employee tenders a resignation or is given a dismissal notice. Gardening leave is a protectionist measure used by an employer when an employee is terminated or when they tender their resignation. Once in effect, it often prevents the employee from being involved in any work activity for their current employer, and typically restricts them from either taking on another job or working for themselves.

An employee is generally likely to spend their time pursuing hobbies such as gardening—hence, the term gardening leave. Salaries and benefits continue until the end of the leave period. Gardening leave is sometimes considered to be a euphemism for being suspended and can be perceived to have negative connotations such as the employee being unfit for anything other than tending to their garden.

The gardening leave is similar to a non-compete clause. Under this type of clause, an employee promises not to work for their current employer's competition for a specific period of time after their employment period is over.

Following the resignation or dismissal of an employee, an employer may decide to place the employee on gardening leave. The primary reason for doing so is to safeguard against possible detrimental actions or behavior that the employee might indulge in during their notice period. The employer may fear that the employee could become uncooperative, or that they may negatively influence the working environment and other employees. The employer may also prefer that the employee limit contact with clients for fear the employe may persuade clients to follow them to their new employer.

Placing an employee on gardening leave could help ensure that by the time the employee is contractually free, they would have been out of the loop long enough to reduce any possible threat. An employee is entitled to their salary and benefits during gardening leave, but depending on their employment contract, may not be eligible for bonuses or accrual payments.

The employee will usually be required to return company property such as laptops, smartphones, or vehicles during this period. While on gardening leave, the employee is required to be available if the employer requires information, support, or even to resume working. For this reason, an employee should not plan to travel during gardening leave, unless approved by the current employer.

An employer may also compel the employee to take any accrued holiday time during the period of gardening leave. An employer does not need to put a gardening leave clause in a contract during the on-boarding process when a new employee is hired, but they are recommended in certain cases. Other guide categories View all categories.

Annual Leave and Other Leave. Dismissal and Termination. Employment Contracts and Legislation. Employment Relations in New Zealand. Important Legislation. Maternity and Parental Leave. Other Employment Relations. Wage and Pay.