“Garden leave” and “notice period” are often observed in employment and human resources. What do these terms mean, and how do they differ? Below is a detailed discussion that comprehends the meaning of garden leave and its policy or how it relates to the notice period.
Garden Leave Meaning
Garden leave (also called gardening leave) is an employment practice when, after the resignation or termination of an employee, he should remain outside from working in the office for his notice period.
The employee is still on the company’s payroll while on this leave and continues to receive their full pay and benefits. This leave largely aims at safeguarding the employer’s interest to stop a leaving employee from going close to vital information, clients and competitors.
It is a phase of transition leading to an employee’s actual separation where specified limitations and duties exist that may be stated in employment contracts or corporate policy.
Garden Leave Policy
The Garden leave policy is designed to provide guidelines for the effective management of employees during their notice period. It is also known as gardening leave, which is common nowadays, where a departing employee is required by contract to stay home while continuing to be compensated by the employer.
The policy explains when the leave can be applied, how long it lasts and the employee’s duties while on such a leave of absence. It further points out the limitations, for example, non-compete and non-disclosure agreements, to safeguard our company’s interest.
The purpose of this policy is to facilitate an organised exit by securing vital knowledge while maintaining stability in financial operations and our obligation towards employees.
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Advantages of Garden Leave
Here are the advantages of garden leave for both the company and the employee:
| Advantages for the Company | Advantages for the Employee |
| 1. Protection of Interests:It safeguards the company’s intellectual property, client relationships, and confidential information during the notice period. | 1. Financial Stability: Employees continue to receive their regular salary and benefits, providing financial security during the transition. |
| 2. Prevents Disruption: It minimises the risk of the departing employee causing disruption, poaching clients, or joining a competitor during their notice period. | 2. Time to Plan: Employees can use the leave period to plan their next career move, search for new opportunities, or consider further education. |
| 3. Smooth Transition: This leave allows for a smooth transition of the departing employee’s responsibilities to their colleagues or successors. | 3. Reduced Stress: It reduces the stress associated with working in a role that one is leaving and allows for a mental break before starting a new job. |
| 4. Enforcement of Restrictions: Employers can enforce non-compete, non-solicitation, and non-disclosure agreements during this leave to protect their interests. | 4. Work-Life Balance: Employees have an opportunity to focus on personal matters, spend time with family, and improve their work-life balance. |
| 5. Mitigates Risks: It mitigates the risk of the employee taking sensitive information or clients to a new employer. | 5. Professional Development: Employees can use the time to invest in professional development, certifications, or skills enhancement. |
Garden Leave in India
Despite being unregulated under Indian labour laws, this leave is fast becoming a popular strategy employed by companies as protection against staff who are serving their notice period. Generally, it’s meant for a short duration as a bridging point between when an individual leaves the company.
Key Points Regarding Garden Leave in India:
- Company Discretion: The implementation of gardening leave is company-based and differs depending on the corporation. Indian labour laws do not mandate it.
- Notice Period: However, while on this leave, the worker should keep off his working place. Even if they do not engage, they stay on the company’s list of employees.
- Duration: It can be for some period of time, and it is up to the employer who sets this term of duration. This can be anywhere from a couple of weeks to some months.
- Restrictions: Some employees will have restrictions placed upon them before their exit; they might include non-competition obligations, non-solicitation of customers and other restrictive covenants or confidentiality undertakings. This is done with a view to safeguard the interests of the company.
- Compensation: On a garden leave, employees still receive their full salary with payroll deductions. This stability of finances in this process is beneficial for both sides.
- Purpose: This leave is primarily intended to protect the employer’s interests, where an outgoing staff could gain access to crucial information belonging to the company, its customers, and critical business operations.
- Legal Implications: Although not expressly provided for by specific law or practice, garden leave usually comprises employment agreement clauses. Contract law is typically used for resolving disputes concerning garden leave.
Garden leave, in many instances, is becoming acceptable in the country because Indian companies have realised a requirement safeguarding intellectual property, clients’ ties and other sensitive information in regard to the time of resignation by some employees.
It may not be necessary under law, but its usefulness in handling changes with proficiency makes it valuable for employment arrangements.
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Garden Leave vs Notice Period
Gardening Leave and notice period are two different approaches for ending employment. Garden leave refers to a situation where an employee is kept on the payroll without active duty but is limited so as not to harm the interests of the employer.
However, the notice period requires the worker to keep working until they leave and help hand over their duties. Knowing all this becomes necessary before signing the contract of employment and handling departures.
Now, let’s look into the key differences between garden leave and the notice period:
| Aspect | Garden Leave | Notice Period |
| Nature | Employees stay away from the workplace. | The employee continues regular work duties. |
| The employee’s Role | Remains on company payroll but doesn’t work. | Actively engages and fulfils regular duties. |
| Duration | Varies at the employer’s discretion. | Specific duration per contract or policies. |
| Pay and Benefits | Continue to receive regular salary and benefits. | Receives regular salary and benefits. |
| Restrictions | May include non-compete and non-disclosure clauses. | Subject to regular company policies. |
| Purpose | Protects employer’s interests and mitigates risks. | Facilitates a smooth transition for the employer. |
Related: Notice Period For Resignation
Conclusion
Understanding these distinctions is vital for both employers and employees, as they determine the terms of separation and responsibilities of each party.
Companies can also use garden leave clauses to reduce risks related to former employees. On the other hand, employees should have familiarised themselves with rights and duties, which they should adhere to while working in the company.
FAQs on Difference Between Garden Leave and Notice Period
Q1. What is Garden Leave?
It is a practice in which workers are required to stay off work during the notice period with certain restrictions and obligations but continue to remain on the paid roll of the organisation.
Q2. What is the Purpose of Garden Leave?
It aims to safeguard the company’s interest by ensuring that departing employees cannot access such vital data and clients while still on notice.
Q3. How Does Garden Leave Differ from the Notice Period?
Unlike the notice period, where employees actively work until departure, garden leave requires employees to stay away from work while still receiving their salary.
Q4. Is Garden Leave Common in India?
Indeed, it is a practice exercised by organisations in India, though there are no specific labour laws pertaining to it.
Q5. What Are the Key Elements of a Garden Leave Policy?
The terms, time, limitations, duties of employees and the leave’s framework are usually stated in a garden leave policy with the aim of creating outlines within such practices.
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