Gardening Leave

What is Gardening Leave?

Garden leave or gardening leave meaning refers to the phase in which, the employees are not allowed to work because of the job termination contract, but they still get the payment. During this period, employees cannot execute their regular work at the office or join another job. The term is extensively used in the financial markets and institutions in New Zealand, UK, and Australia. The term was first found in Massachusetts, US in 2018.

The term sounds quite favorable and it seems like many employees would want the garden leave to be extended for several days so that they don’t have to go to work. After all, their payroll will be issued for these days. However, it can be quite negative and restrictive for employees. The main objective of this concept is to protect the worker’s interest.

Overview of Gardening Leave

Issued by an employer, gardening leave aims to protect the interest of the employees. This is useful when the employment contract has terminated, the employee has signed the resignation letter or the employee is no longer needed at the workplace. Once the garden leave has come into effect, employees cannot work for the employer anymore. Besides, they are not allowed to work for other employers too.

So, all that an employee gets to do during this time is to pursue their favorite activities or hobbies like gardening. That’s how the term “Gardening Leave” was coined. Until all the formalities are over and the contract has terminated, the employee will be treated as a regular worker. They will get a full salary.

In some cases, gardening leave is considered as a negative term. The term is used in a negative manner for the incompetency of the employee. For instance, if an employee has not quit the job on purpose, but is rather suspended due to the lack of required skills and abilities, then they are given the gardening leave. If that’s the case, then gardening leave means that the employee is not fit for any responsible job. The only thing they are good at is taking care of their garden.

While the paycheck is still issued until the contract ends, the employee is not allowed to join another job, especially in the competitor’s firm. They can’t apply for similar positions in other companies as long as their gardening leave period ends.

Why Consider Gardening Leaves?

The employer could decide to put the employee on gardening leave after their suspension or resignation is announced. Now, this can be quite expensive for the employer since they are supposed to issue the paycheck to the employee. However, gardening leave guarantees the protection of the company from the employee’s detrimental actions. This gives the employer peace of mind that the employee will not indulge in any unfavorable activity, at least until the notice period is over.

Since employees will no longer work for the company, they cannot harm their co-workers, leak the confidential business information, and cause any damage to the property or assets of the company.