Everything You Need To Know About Gardening Leave Including Salary

Gardening leave, a term familiar to many but understood by few, occurs when an employee remains on their company's payroll but is relieved from their regular duties. Often used during notice periods, gardening leave protects the employer's interests by keeping the employee away from sensitive information or competitors while still fulfilling contractual obligations. 

Understanding the nuances of gardening leave is crucial for both current employees facing this prospect and job candidates contemplating signing contracts that include such stipulations. This knowledge can significantly impact your career planning and financial decisions. For further advice on salary-related topics, refer to our comprehensive guide, What Is A Salary? Definitions And Terminology.

Highlights And Key Takeaways:

1. Gardening leave (garden leave) is a term used to describe a situation where an employee, typically in senior roles, must stay away from the workplace during their contractual notice period.
2. Employees placed on garden leave are typically entitled to the same pay and benefits they would receive if they were still actively working.
3. Employees must remain available to attend work if the employer requests.
4. We include tips for discussing garden leave with an employer and strategies for negotiating favourable employment terms.

Quick Links:

• What Is Gardening Leave?
• Salary And Benefits During Gardening Leave
• Employee Obligations During Gardening Leave
• Pros And Cons Of Gardening Leave
• PILON vs Garden Leave
• How To Negotiate Gardening Leave
• Legal Considerations And Rights
• Practical Tips For Managing Gardening Leave
• Employee's Notice Period And Garden Leave Period FAQs

What Is Gardening Leave?

Gardening leave, often called garden leave, is a term used to describe a situation where an employee, typically in senior roles, must stay away from the workplace during their contractual notice period. Despite being absent from work, the employee receives full pay and benefits. This practice is commonly employed to safeguard the employer’s business interests, ensuring that the departing individual does not have access to sensitive company data or the opportunity to influence the workforce negatively during their transition.

The purpose of the gardening leave is multifaceted. It prevents employees, especially senior employees, from immediately joining competitors or using confidential information acquired during their tenure to the detriment of their current employer. Moreover, it provides a buffer period during which the employer can make necessary arrangements, such as transitioning duties or recruiting a replacement, without the departing employee’s interference.

Gardening leave is strategically applied in various scenarios, such as after an employee’s resignation or when an employee is leaving under circumstances that could potentially jeopardise the employer’s operations. In senior roles where access to strategic plans and proprietary information is significant, placing an employee on garden leave can be a strategic move to protect business interests.

For those considering new job offers, it’s crucial to understand the implications of gardening leave. Our blog post, What to Consider Before Accepting a Job Offer and our Career Advice pages offer valuable insights into these considerations, equipping you with the knowledge to make informed career decisions.

Salary And Benefits During Gardening Leave

Employees placed on garden leave are typically entitled to the same pay and benefits they would receive if they were still actively working. This is ensured through the garden leave clause in their employment contract, which specifies that during the employee’s contractual notice period, they will continue to receive their full salary and benefits package.

The key difference between gardening leave and regular employment terms is that while on gardening leave, you not required to perform your usual job duties. Despite this, you are still bound by the terms of your employment contract, including confidentiality agreements and non-compete clauses. This ensures you remain loyal to the company’s interests during the notice period, even though you are not physically present.

Variations in salary and benefits during garden leave can occur based on the specifics of the employment contract. For example, some contracts stipulate that certain bonuses or commissions are not payable during gardening leave.Others may offer continued access to company resources, such as a car or health insurance, while some might limit these benefits. It’s crucial for employees to thoroughly review their garden leave clause to understand exactly what they are entitled to during this period.

Employee Obligations During Gardening Leave

During gardening leave, the employment contract terms largely define an employee’s obligations. While you stay at home or away from your regular workplace, you must remain available to attend work if the employer requests. This could include undertaking specific tasks or assisting with handovers and other transitional activities.

One critical aspect of gardening leave is adherence to post-termination restrictive covenants. These clauses in the employment contract ensure that the employee cannot engage in activities that would be detrimental to the employer’s business interests. For example, the employee is typically prohibited from starting a new job with a competitor or using sensitive company information for personal gain during the defined period of gardening leave.

Confidentiality and non-compete clauses remain in full effect, meaning the employee must not disclose proprietary information or engage in business activities that could harm their current employer. Any breach of contract during this period, such as failing to adhere to these obligations, could result in serious consequences, including legal action and loss of financial benefits.

Given the complexity of these obligations, employees are strongly advised to seek expert legal advice. This step is not just a formality, but a crucial one to fully understand your rights and responsibilities during garden leave. It ensures you are well-prepared to comply with all requirements and avoid any actions that could be construed as a breach of contract, empowering you to make informed decisions about your career.

Pros And Cons Of Gardening Leave

While beneficial in many ways, Gardening leave also comes with its challenges. Understanding the pros and cons can help employees and employers make informed decisions about implementing and navigating this period.

Advantages of Garden Leave for Employees:

• Paid Time Off: Employees receive their full salary and contractual benefits while on gardening leave, offering financial stability without the need to work.
• Preparation for New Role: This period allows departing employees to prepare for their next job opportunity without the immediate pressures of a new role.
• Maintaining Professional Boundaries: By being away from the workplace, employees can avoid potential conflicts and focus on their future career plans.
• Using Company Resources: In some cases, employees may retain access to certain company property or resources, such as health insurance or company vehicles.

For more tips on career transitions, refer to our blog, Researching And Exploring Your Career Path, and explore our free CV Templates and Job Search pages.

Advantages of Garden Leave for Employers:

• Protecting Sensitive Information: Gardening leave is a protective measure to ensure that confidential client contact information and other sensitive data are not disclosed to competitors.
• Managing Employee’s Activities: Employers can control the employee’s activities during the transition period, ensuring no detrimental actions are taken.
• Smooth Transition: It provides time to recruit and train a new employee, ensuring a seamless transition without the departing employee’s interference.
• Maintaining Client Relationships: By limiting the departing employee’s access, employers can manage client communications effectively and prevent any unauthorised contacting of clients.

Potential Downsides and Challenges:

• Employee Morale: Prolonged periods away from work can affect the departing employee’s morale and sense of purpose, impacting their readiness for new job opportunities.
• Legal and Contractual Complexities: Misunderstandings regarding the terms of garden leave work can lead to disputes or potential legal issues.
• Resource Allocation: Employers must allocate resources to manage the transition period and ensure the remaining team can cover the departing employee’s responsibilities.
• Potential for Breach of Contract: Both parties must be vigilant to avoid actions that could be construed as a breach of contract, which could result in legal complications and financial loss.

Balancing the significant benefits of gardening leave with these challenges requires careful planning and communication. Understanding these aspects can help both parties navigate the garden leave period effectively.

PILON vs Garden Leave

When an employee leaves a company, employers have two primary options for managing the notice period: Payment in Lieu of Notice (PILON) and gardening leave. Understanding these options is crucial for employers and employees as they navigate the end of an employment relationship.

Definition and Explanation of Payment in Lieu of Notice (PILON)

Payment in Lieu of Notice (PILON) is a provision in employment contracts where the employer compensates the employee for their notice period without requiring them to work during this time. The primary reason for opting for PILON is to expedite the employee’s departure while providing them with financial compensation equivalent to their notice period. This allows the employee to move on to other employment opportunities more quickly.

Key Differences Between PILON and Gardening Leave:

• Period of Garden Leave: During a period of garden leave, the employee remains on the payroll and retains their contractual benefits while being relieved from their work duties. They are still technically employed by the company and bound by the terms of their employment contracts.
• Immediate Departure with PILON: With PILON, the employee leaves the company immediately upon payment, severing their employment relationship and freeing them to pursue other employment without delay.
• Restrictions: On garden leave, employees are typically restricted from starting other employment until the end of the leave period. With PILON, these restrictions are lifted once the payment is made, allowing for immediate employment elsewhere.

Situations Where One Might Be Preferable Over the Other:

• Protecting Business Interests: Garden leave is often preferable when the employer needs to protect sensitive information and client relationships, ensuring the employee cannot use this information at a new job during the notice period.
• Immediate Transition: PILON is beneficial when both the employer and employee prefer a quick and clean break, allowing the employee to start new employment immediately without being bound by the constraints of garden leave.
• Contractual Obligations: The choice may also depend on the specific terms outlined in employment contracts. Some contracts mandate one option based on the company’s policies or the employee’s role.

Understanding these differences helps employers and employees choose the most appropriate option for their circumstances, ensuring a smooth transition at the end of an employment period. You may like to read about severance pay and your rights, which we cover in our blog - Everythig You Need To Know About Severance Pay.

How To Negotiate Gardening Leave

Negotiating gardening leave requires a clear understanding of your employee contract and strategic communication with your employer. Here’s a guide to help you navigate this process effectively.

Steps to Review and Understand Your Employment Contract:

1. Read the Employee Contract Thoroughly: Start by carefully reviewing your employee contract to identify any gardening leave clause and other relevant contractual clauses. Pay close attention to the terms and conditions regarding notice periods, confidentiality, and non-compete obligations.
2. Identify the Set Period: Understand the duration of the set period specified for gardening leave. This will help you gauge how long you may be required to stay away from the workplace while still employed.
3. Seek Clarification: If any terms are unclear, seek clarification from your HR department or consult an employment lawyer to ensure you fully comprehend your rights and obligations during gardening leave.

Tips for Discussing Gardening Leave with Your Employer:

1. Prepare Your Case: Before approaching your employer, prepare a compelling rationale for why gardening leave is beneficial for both parties. Highlight how it can provide a smooth transition and protect sensitive information.
2. Be Professional and Cooperative: Approach the discussion professionally and cooperatively. Express your willingness to comply with company policies and demonstrate how gardening leave can be a win-win situation.
3. Highlight Mutual Benefits: Emphasise how gardening leave can allow you to prepare for your next role while ensuring a seamless handover of responsibilities, thereby safeguarding the company’s interests.

Strategies for Negotiating Favourable Terms:

1. Negotiate the Duration: Discuss the possibility of adjusting the set period to better suit your and the employer’s needs. Be open to compromise to find a mutually agreeable duration.
2. Clarify Expectations: Clearly outline and agree upon your availability and responsibilities during the gardening leave. Ensure a mutual understanding of what is expected, such as being available for occasional consultations or avoiding certain activities.
3. Request Written Agreement: Once terms are agreed upon, request a written agreement or amendment to your employee contract that specifies the details of the gardening leave clause. This ensures that both parties have a clear record of the negotiated terms.

Following these steps and strategies, you can effectively negotiate gardening leave that aligns with your career plans while respecting your employer’s business interests.

Legal Considerations And Rights

Understanding the legal considerations and rights associated with gardening leave is essential for employees and employers. Here’s an overview to guide you through the key aspects.

Overview of Legal Rights Related to Gardening Leave in the UK

In the UK, employment law governs gardening leave and is typically detailed in an employee’s contract. The contractual clause specifying gardening leave outlines the terms and conditions under which employees remain employed but are relieved from their regular duties. During this period, the employee continues to receive full salary and benefits while still being bound by restrictive covenants such as confidentiality and non-compete agreements.

Important Employment Laws and Regulations:

1. Contractual Obligations: The employment contract will often contain specific clauses related to garden leave. Employees must understand these clauses to know what is expected of them during the leave period.
2. Restrictive Covenants: These are contractual clauses that limit an employee’s activities during and after employment, including non-compete and non-solicitation agreements. Violating these covenants can result in legal action.
3. Fair Treatment: Employment law ensures that employees are treated fairly during gardening leave, receiving their entitled pay and benefits. Employers must adhere to these laws to avoid disputes.

How to Seek Legal Advice or Assistance if Needed

If you find yourself uncertain about your rights or obligations during gardening leave, it’s advisable to seek expert legal advice. Here’s how you can do that:

1. Consult an Employment Lawyer: An employment lawyer can provide detailed advice on the specific terms of your employee’s contract and help you understand any restrictive covenants. They can also assist in negotiating favourable terms or resolving disputes.
2. Review Official Guidelines: The UK government provides comprehensive advice on employment matters, including handing in your notice and understanding your rights. For more information, visit the Official UK Government Advice Page for Handing In Your Notice.
3. Employee Support Services: Many organisations offer support services, including HR departments and employee advisory services. These services can provide initial guidance and refer you to legal experts if necessary.

In conclusion, while gardening leave can seem like a complex and potentially bad thing if misunderstood, being well-informed about your legal rights and the relevant employment laws can help ensure a smooth and fair transition during this period.

Practical Tips For Managing Gardening Leave

For an exiting employee, managing gardening leave effectively involves staying productive, planning your next career move, and managing finances.

• Staying Productive and Maintaining Professional Relationships: While away from the office, use this time to network and maintain professional relationships. Stay in touch with colleagues and industry contacts to keep your professional network active.
• Planning for Your Next Career Move: Utilise this period to prepare for your next role. Update your CV, research job opportunities, read our blog How To Find Work, and consider further training or education. Explore our resources for comprehensive support, including our Career Advice page, Blog, Average UK Salary guidance, and Highest Paying Jobs data.
• Managing Finances and Benefits: During gardening leave, ensure you understand your pay and benefits. Budget carefully to manage your finances effectively, considering any changes in income or expenses during this period.

Employee’s Notice Period And Garden Leave Period FAQs

Now, we answer your questions on a garden leave clause and notice period:

DO YOU GET FULL PAY ON GARDENING LEAVE?

Yes, employees typically receive full pay and benefits while on gardening leave. This period allows the employee to stay away from the workplace while still being on the payroll, ensuring they do not join a competitor or misuse sensitive company information. The terms of gardening leave, including pay, are usually outlined in the employment contract, and employees should refer to this document for specific details.

WHAT ARE MY OBLIGATIONS DURING A GARDEN LEAVE PERIOD?

During garden leave, employees must usually remain available to the employer and may need to assist with handovers or provide advice if requested. They are still bound by their contract's terms, including confidentiality and non-compete clauses, and must only commence employment with a new employer once the leave period concludes. The precise obligations will depend on the terms outlined in the employment contract.

WHICH IS BETTER, PILON OR GARDEN LEAVE?

The choice between Payment in Lieu of Notice (PILON) and garden leave depends on the specific circumstances of the employment and the individual's future plans. PILON involves an immediate payment covering the notice period, allowing the employee to start a new job sooner. Garden leave, on the other hand, keeps the employee on the payroll during the notice period but restricts them from starting new employment immediately. Each option has different implications for both the employer and the employee, and the best choice will vary based on personal and professional considerations.

HOW DO I NEGOTIATE GARDEN LEAVE?

When negotiating garden leave, it's essential to have a clear rationale for your request. This helps your employer understand your perspective and increases the chances of a positive response. Start by reviewing your employment contract to understand the existing terms and conditions. Then, approach your employer with this clear rationale, highlighting how the garden leave could benefit both parties. This could include ensuring a smooth transition and protecting company interests. Be open to discussing and negotiating the length of the garden leave and any specific obligations or restrictions. Remember, effective communication and a cooperative approach can lead to a mutually agreeable arrangement.