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What is “Garden Leave” and in what countries do you encounter Garden Leave? (Webinar Attendee Question)

This question was asked during the Proformative webinar "Going Global: Expanding Internationally the Right Way."  A video of the webinar can be viewed here: https://www.proformative.com/resources/webinar-video-going-global-expanding-internationally-right-way

Answers

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Kurt,

I've run into this before outside of the US (both in Japan and Europe). Termination can be a difficult thing, often drawn out over a few months. It is a much stronger negative to have a "terminated" on your resume outside of the US, and is legally much more difficult for the company to execute on.

So, instead of a package (or a wave goodbye as you find in "at will" agreements), you offer the employee a few months of employment wherein they are expected not to show up, and instead find a new role. This is so they can continue to claim employment while looking for a new role. You don't get sued, and they don't get embarrassed. Win-win.

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

Garden leave can be a formal or informal policy of limiting an employee's access to company premises (or property) in the event of a voluntary or involuntary termination (resignation, layoff) while still paying out their eligible pay or severance keeping them on the payroll (by default they can't do any work and can tend to "gardening" or other hobbies during this period of paid leave). In the US is common for laid-off employees or those who resign and may potentially have access to sensitive/confidential company information. Also is common in UK and many of the European Union countries.

Topic Expert
International Representative
Title: International Expert
Company: Nair & Co.
(International Expert , Nair & Co.) |

Garden leave is a process whereby the employee is required to stay at home away from the office doing work as directed or doing nothing at all but is paid his full remuneration. This is usually used to ensure a leaver is not able to disrupt the office during his notice period.

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