Garden leaves is a rather new and confusing phrase for people who hear it for the first time. Most working professionals in India do not know what a garden leave is, or its meaning. Do you?
If your answer is no, worry no more! In this blog, we discuss in-depth what are garden leaves, its meaning, and some frequently asked questions about them.
Garden Leave Meaning
While it sounds like a gardening term, garden leave meaning is far from it. In the professional world, garden leaves refer to the period where an employee has resigned and is instructed to not come to the workplace during the notice period without compromising on the benefits of the same.
In simpler words, garden leaves can be defined as the notice period where you do not have to go to work. At this time, the employee is still on the payroll of the company and is contractually a part of the same but is not required to work at the workplace.
These leaves are so called since during this time, people are obliged to be associated with their employers but cannot work for the current or future company, and all they can do during this period is spend time in their garden.
Frequently Asked Questions
1. Why do companies offer garden leaves?
Some companies offer garden leaves for the benefit of their employees, but generally, garden leave is a tactic used by companies to safeguard their business strategies, interests, and confidential information. This is generally applicable to people employed in senior positions like directors, CEO, COO, etc., who have access to all the sensitive information.
Secondly, including garden leaves in an employment contract can work as a buffer and ensure that the company secrets are retained and secured, especially if the employee is joining the competition.
Third, as you look for a replacement for the open position, you get ample time to lookout for and train the individual without much interference from the employee who is leaving.
2. Does garden leave benefit companies?
At the face value, garden leaves seem to be a dream come true for any employee transitioning between jobs as they get to enjoy their notice period with all benefits but do not have to work during the term.
But companies also consider their welfare by giving garden leaves to their employees. It allows the companies to protect sensitive information from employees leaving the organization, reducing the risk of losing crucial data and strategies that can be misused by others.
3. Are there garden leaves in India?
Garden leaves are not very common in Indian organizations yet but this is gradually changing. Many HRs believe that introducing garden leaves can reduce the employee attrition rate considerably. As of now, garden leaves can be legally enforced if
the employee is still on the payroll of the current company until the end of their notice period. The employee receives a salary and still gets the benefits from their job.
4. What are some reasons to use garden leaves?
With all this discussion around garden leaves, one question that comes to mind is, what is the need for these types of leaves?
In most cases, the purpose here is to prevent the employee from accessing your company’s private information until it becomes outdated and keep them out of the loop.
Another use of garden leaves is to block poaching of employees by other companies.
In case of non-cordial termination, the employers may want to protect the plans for the company from employees, for which they can use garden leaves to keep all the crucial details under wraps and protect them from being leaked or misused.
In a good case scenario where the employee is leaving the company on a happy note, they can use the garden leaves as a break as they transition from one job to another.
5. How do garden leaves affect employees?
Garden leaves sound too good to be true and sometimes they are. It only works if both the employer and employee agree to the terms of garden leaves. They are contractually on the company’s payroll and receive remuneration for the period of garden leave.
But many times, garden leaves are invoked when there is a lack of trust and confidentiality. When it is not mutually agreed upon, garden leaves can be an obligation where the employee would be bound to be associated with their current employer and not join the new company, which can be a hindrance as they try to move forward professionally.
6. What can employees expect during garden leave?
During garden leaves, employees are required to follow the terms and conditions mentioned in their contract but they are not required to do any work.
In most cases, they are kept out of business proceedings and are not expected to come to work. Employees on garden leaves are entitled to monetary compensation, perks, and benefits similar to those of regular employees but are not allowed to access the office, colleagues, and company documents.
7. What rights does an employee have during garden leaves?
When on garden leaves, employees have the following rights:
- Remuneration
- All perks and benefits included in the employment contract
- Leave with pay
- Statutory benefits
- The right to be treated as an equal
Conclusion
While still relatively uncommon in India, the practice of garden leaves is a savior for people trying to protect their companies from data leaks and information theft.
When a senior-level employee transitions to another company, especially the competitor of their current organization, garden leaves emerge as a fair way to safeguard crucial details without exploiting the employee in question.
