Garden Leave

What is Garden Leave?

Garden leave is not an uncommon situation which normally occurs where an employee does not attend the workplace at the request of the employer, but the employee continues to be paid for a certain period.

It normally happens when an employee no longer wants an employee to work at their place of work and who has given a notice that they are leaving or that the employer has given them notice to terminate the employment contract.

Employer’s may request certain employees in some circumstances to take garden leave. Generally, there are some advantages to an employer in requesting that the employee take garden leave. During the period of garden leave, an employee is still bound to their employment contract, which means that some of the advantages to the employer will be:

• To protect the confidential information of the business (before the employee commences work elsewhere).

• To manage the relationships between the employee and the business’ suppliers and clients (before the employee commences work elsewhere).

• To alleviate any potential competition for a period (where the employee cannot work for another competing business).

• To alleviate the potential stress in the workplace (by not having the employee present at the workplace may limit any other workplace stresses).

Garden leave can be a significant tool to protect business interests and confidential information and relationships. On the other hand, garden leave can be costly including the payment to the employee including all benefits as if they were continuing to work.

Unless your contract of employment expressly requires the provision of work, it is lawful for your employer to direct you to go on garden leave.

There are certain professions requiring skills or talents, such as surgeons and TV presenters, where an employer owes an obligation to the employee to provide work. In these circumstances, it is not lawful for your employer to place you on garden leave.

If your contract of employment contains a clause allowing garden leave, it will be lawful for your employer to direct you to go on garden leave.

If you are unsure and would like legal advice regarding the effects of garden leave, contact Culleton Lawyers by calling 4243 7855 or emailing reception@culletonlawyers.com.au