What is garden leave? Your pay, duties and rights explained

What garden leave means

Garden leave means you're still legally employed and still being paid as normal during your notice period, but your employer tells you not to come in and not to do any work. It's also called 'leave in lieu of notice'. You keep your job, your pay and your benefits until your agreed last day; you just aren't rostered on or given tasks.

Your employment keeps running the whole time: you still earn annual leave in the usual way, you're still bound by your employment agreement (including confidentiality and any restraint of trade clause), and you still owe your employer good faith.

Garden leave vs pay in lieu vs working your notice

Your rights and duties while on garden leave

• You must still be paid your normal pay for the whole period, as if you were working.
• You keep accruing annual leave as usual, unlike payment in lieu of notice.
• You're still an employee, so duties of good faith, confidentiality and loyalty continue. Check your agreement before starting a new job or setting up a competing business while on garden leave.
• Garden leave needs your written agreement. An employer generally can't put you on it unless your employment agreement already allows it, or you agree at the time.
• Ask whether you can use the time to job hunt, including paid time for interviews if your agreement provides for it.

Why employers use it

Employers mainly use garden leave to keep someone away from clients, colleagues or sensitive information during their notice period, without ending their employment early, for example when a manager is leaving for a competitor, or a role is disestablished and there's genuinely nothing left for the person to do. It's also used alongside a restraint of trade clause to delay someone starting with a new employer, because a restraint period often doesn't start running until employment actually ends. See the restraint of trade guide.

What to do if you're put on garden leave

1. Get it in writing: your last day of employment, that you'll be paid as normal for the full notice period, and that you're not required to work.
2. Check what it means for annual leave, KiwiSaver contributions and any bonus or commission that would otherwise accrue.
3. Ask if you can use paid time to job search or attend interviews.
4. If you have a restraint of trade clause, check when it starts, and whether garden leave counts towards it or runs on top.
5. If you're not paid properly, or asked to come back in without your agreement, raise it in writing. You may be able to raise a personal grievance.