Understanding Garden Leave

Garden leave is a necessary safety measure designed to protect a company, along with their data and assets. If an employee is put on garden leave, it means they can serve their notice period at home while still receiving their salary and benefits as per their contract. It’s important for employers to have a garden leave clause in a contract, as applying it without one may lead to legal disputes. In this blog post, we’ll explore what is garden leave and why it’s a necessity in some cases.

What Is Garden Leave?

Garden leave occurs when an employee, who has either resigned or had their contract terminated, is requested to serve the remainder of their notice period at home, rather than in the workplace. “Your employer may ask you not to come into work, or to work at home or another location during your notice period,” according to GOV.UK (Redundancies, dismissals and disciplinaries).

Throughout this period an employee is not permitted to work elsewhere. Garden leave is normally done as a protective measure to prevent employees from accessing sensitive information or poaching clients.

When Should You Consider Garden Leave?

Businesses may find themselves in a position to use garden leave to prevent employees from accessing sensitive information that they may potentially use in a new role. This is common with those in sales positions or senior roles. In instances where an employee who has resigned or been terminated has access to commercially sensitive data, they could be put on garden leave for the overall betterment of the company.

While in some instances, garden leave may not be the ideal course of action, it helps employers manage the risks associated with an employee’s departure. This way, the employee remains compensated during their notice period and employers can have peace of mind in knowing vital information is protected.

Pros of Garden Leave

There are a few key benefits of implementing garden leave. It can help safeguard your data and confidential information from reaching competitors. Garden leave also works as a safety measure that can help maintain trust within your client base as it reassures them that sensitive information is in good hands. Another positive aspect is that garden leave can prevent disruptions from employees affecting the culture and atmosphere.

Drawbacks of Garden Leave

There are a few negative aspects associated with garden leave as it can disrupt the usual flow of operations. The most common drawback is cost. An employee on garden leave will still receive their regular salary, whether they’re working or not. However, an employee will still be expected to perform their duties from home if requested by the employer. A company can also save money by having its information and data safeguarded, so while an employee is still receiving their salary, the company has assurance that they’re not poaching clients or providing competitors with confidential information.

How To Implement Garden Leave

It’s important to understand the contractual rights involved before implementing garden leave. If the period extends beyond the standard notice period, the employee may have grounds for legal action. Employers must clearly communicate the employees’ rights, as well as any restrictions on their activities during this time. To enforce garden leave in a legally compliant manner, the employment contract must include a specific garden leave clause and the duration of leave must be reasonable.

If there isn’t an expressed clause, then garden leave may still be enforced under an implied clause, but an employer would need to be able to prove that garden leave was enforced to protect their interest. Therefore, it’s highly recommended to safeguard your business with a specific garden leave clause to avoid legal complications.

Get Help With Garden Leave from Clover HR

If you would like further guidance on garden leave or other HR services, contact our specialist team. Give us a call on 0330 175 6601 or email us at info@cloverhr.co.uk.