What is Garden Leave? Why do companies offer it and what are the benefits
Garden Leave – Introduction
When an employer requests that an employee not report to work after giving notice, this is known as a "Garden Leave" request.
The employee is instructed not to work during their notice period but is still paid.
When an employer requests that an employee not report to work after giving notice, this is known as a "Garden Leave" request.
The employee is instructed not to work during their notice period but is still paid.
The name originated as people could not work for either their former or new employment during this period.
Consequently, they may end up spending time working in the garden.
It is a tool that employers in UK may use after an employee has given their notice to restrict them from reporting to the office or working from their homes or perhaps another place for a certain amount of time.
Reasons for Companies to offer Garden Leave
In the case of an employee joining a rival company, the 'garden leave' clause in an employment contract is most commonly employed.
This serves as a sort of "buffer zone" betwixt their present position and their intended future one. This effectively prohibits employees from learning any private business information and sharing it with a rival.
Another benefit of putting an employee on garden leave is that it allows another individual to step into their old position without being impeded.
Individuals who are on leave are also not given access to that data about the future that would be useful to another organization, such as future business plans.
Additionally, you have plenty of time when searching for a successor for the vacant position to find and train the candidate without being significantly hampered by the departing employee.
Employers may wish to conceal the company's intentions from employees in the event of an unfriendly dismissal.
To do this, they might cover up all the critical information with garden leaves to prevent leaks or improper usage.
The garden leaves can be used as a break while the person transitions from one position to another in the best-case situation where they are leaving the organization on a positive note.
What should employees expect during Garden Leave?
Employees are obligated to respect the terms and conditions outlined in their contract while on garden leave.
However, they are not required to perform any work.
The majority of the time, they are excluded from corporate activities and are not required to report to work.
Professionals on garden leave are still eligible to income, privileges, and advantages comparable to those enjoyed by normal staff, but they are not permitted access to the workplace, their coworkers, or corporate records.
Privileges for Employees during Garden Leave
Employees are entitled to the following when on Garden Leave
Every Benefit and Perk described in the Contract of Employment
Leave with Pay
Statutory Perks
Equal Treatment
Compensation
Garden Leave – Employers
Advantages
Makes sure a worker will be on hand to answer questions before they leave
Makes sure that tasks are transferred properly
Prohibits a departing employee from getting
accessibility to certain sensitive areas of an organization
Can keep a worker from going to work for a rival company
Disadvantages
It can be costly, especially in the case of senior executives
Work output is essentially nil for the remuneration paid out
Garden leave is governed by volatile laws which often change
May deter potential hires
Garden Leave – Employees
Advantages
Salaries provided for a specific period
In exchange for remuneration, low to almost no work hours are required
New opportunities may be explored to start post-expiry of the garden leave
Compensation and benefits continue to accrue
Garden Leave – Employees
Disadvantages
Restrictions apply for the duration of the leave
Personal satisfaction from work is depleted
Lengthy leaves may impact career plans; for example, 90 days
In case of termination, it may reflect poorly on the employee
Garden Leave – Example
Garden Leave in the U.S.
In the middle of 2018, Massachusetts passed the garden clause provision becoming the first state to do so in the United States of America, according to the Associated Press.
Timestamps-
0:15 - Introduction to Garden Leave
1:05 - Reasons for Companies to offer Garden Leave
2:21 - What should employees expect during Garden Leave?
2:51 - Privileges for Employees during Garden Leave
3:06 - Advantages and Disadvantages of Garden Leave – Employers
3:47 - Advantages and Disadvantages of Garden Leave – Employers
4:26 - Garden Leave – Example