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Garden Leave Policy
Garden Leave Policy
Company Name
Effective Date
Policy Owner
Approved By
Maximum Garden Leave Duration
1. Purpose & Scope
(a)This policy establishes the Organization's framework for placing departing employees on garden leave during their notice period, ensuring the protection of confidential information, client relationships, and business interests while honouring the employee's contractual rights.
(b)This policy applies to all employees whose employment agreements contain a garden leave clause, or where the Organization determines that garden leave is necessary to protect legitimate business interests upon the employee's departure.
(c)The decision to place an employee on garden leave shall require the joint approval of the employee's Division Head, the Head of Human Resources, and Legal Counsel, and shall be documented in writing.
2. Terms & Conditions During Garden Leave
(a)During garden leave, the employee shall continue to receive their full base salary, contractual benefits, and any accrued entitlements. The employee remains employed by the Organization and is bound by all existing contractual obligations.
(b)The employee on garden leave shall not attend the workplace, access Organization systems or premises, or contact clients, suppliers, or colleagues for business purposes unless expressly authorised in writing by the HR department.
(c)The Organization may, at its discretion, require the employee to utilize a portion of their accrued annual leave during the garden leave period. Any such direction shall be communicated in the garden leave notification letter.
3. Notification & Handover
(a)The Organization shall provide the employee with a formal garden leave notification letter that specifies the start date, duration, terms and restrictions, and the employee's obligations during the garden leave period.
(b)Before the commencement of garden leave, the employee's manager shall ensure that all critical handover activities, including the transfer of ongoing projects, client relationships, and key documentation, are completed or assigned to a designated successor.
(c)The Organization shall inform relevant internal stakeholders and, where appropriate, key clients of the employee's transition in a manner that protects the Organization's interests and maintains client confidence.
4. Breach & Enforcement
(a)Any breach of the garden leave terms by the employee, including unauthorised contact with clients, attendance at the workplace, or commencement of employment with another entity, may result in legal action, including injunctive relief and recovery of damages.
(b)The Organization shall take reasonable steps to monitor compliance with garden leave terms, including monitoring of the employee's professional activity on public platforms and maintaining communication with clients regarding any unauthorised contact.
5. Conclusion of Garden Leave & Policy Review
(a)Upon the expiry of the garden leave period, the employee's employment shall terminate on the last day of the notice period. The Organization shall issue all separation documents and process the final settlement within 30 calendar days.
(b)This policy shall be reviewed at least annually by the policy owner in consultation with Legal Counsel to ensure that garden leave provisions remain enforceable under evolving employment law and aligned with the Organization's business needs.
The guide
Everything you need to know about the garden leave policy
What Is a Garden Leave Policy?
A garden leave policy allows an employer to require a departing employee to stay away from work during their notice period while remaining on payroll. The employee stays employed, keeps receiving pay and benefits, but does not attend the workplace or access systems and clients. It is used to protect sensitive information and relationships when someone is leaving, especially for a competitor.
Why Companies Need a Garden Leave Policy
When a key employee resigns, keeping them active can risk data leakage, client poaching, or disruption. Garden leave neutralizes that risk by removing access while the notice period runs and the employee stays bound by their duties. It protects confidential information and client relationships, buys time to transition their work, and offers a cleaner alternative to litigating a non-compete after departure.
What a Garden Leave Policy Should Include
State the employer's right to place staff on garden leave and which roles it applies to. Confirm continued pay, benefits, and employment status during the period, and the employee's ongoing duties such as confidentiality and availability for handover. Clarify restrictions on working elsewhere, accessing systems, or contacting clients. Define the maximum duration and its interaction with notice and any post-termination restrictions.
During garden leave the employee remains employed and paid but stays away from work, whereas a non-compete restricts them after employment ends, usually without pay. Garden leave is often easier to enforce because the employee is still on payroll and bound by employment duties.
Yes. A defining feature of garden leave is that the employee remains employed and continues to receive full salary and benefits throughout the period. In exchange they stay away from work and remain bound by confidentiality and other duties. This is what distinguishes it from suspension without pay.
An employer can usually require garden leave only if the employment contract or policy expressly permits it. Without a clause, forcing an employee to stay away could breach the right to work in some jurisdictions. Include a clear garden leave clause in contracts to preserve this right.
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