Garden leave (also known as gardening leave) is common practice in executive-level employment contracts, referring to the period after an employee leaving a job is instructed to stay away from work during the notice period, while still remaining on the payroll. Garden leave often overlaps with or supplements: non-compete clauses, non-solicit clauses or confidentiality obligations, preventing the executive from immediately taking sensitive information or client relationships to a competitor business. [1]
Employees continue to receive their normal pay during garden leave and must adhere to their conditions of employment, such as confidentiality and non-compete clause, at least until their notice period expires. [2] An employer's main benefit from a garden leave is the ability to protect their businesses. [3] A similar practice applies in the United States where an employee (typically a high-ranking executive) that is immediately relieved of responsibilities usually remains with the company as a consultant (special adviser) for the remainder of their contract, continuing to receive a salary and office during that period.[ citation needed ]
This practice is often used to prevent an employee from taking with them up-to-date (and perhaps sensitive) information when they leave their current employer, especially when they are very likely leaving to join a competitor. [4] In jurisdictions where employee non-compete clauses are legal, the practice is used to maintain the effectiveness of such clauses. This is also sometimes used when an employee position is no longer needed during the notice period. Sometimes, the practice is used to avoid careless work or sabotage by an uninterested or disaffected employee, or when an employer wishes to imply that is the case.
The term originated in the British civil service, where employees had the right to request special leave for exceptional purposes.
The term came to widespread public attention in 1986 when it was used in the BBC sitcom Yes, Prime Minister episode "One of Us", in which a character potentially involved with a Russian spy is threatened with "gardening leave". [5]
The term can also refer to the case of an employee between projects, or when, as a result of publicity, their presence at work is considered counterproductive. It has also been used in British football in regard to staff such as the team manager. [6]