Garden leave is when an employee leaving a job is required to stay away from work during their notice period, while still remaining on the payroll and receiving normal pay.
What is garden leave?
Garden leave is sometimes used to manage the transition when an employee is leaving an organisation. Instead of working their notice period, the employee stays away from the workplace (or ‘in the garden’) but remains on full pay and all their benefits. This period can help protect sensitive information, reduce disruption and support a smooth handover — especially in senior or client-facing roles.
Employees on garden leave are still under contract and usually can’t start a new job or work for a competitor until the notice period ends.
In Australia, garden leave is less common than in some other jurisdictions but may be used where contracts allow it. Payroll must continue with normal pay and benefits during this period.
Things to know
- Garden leave must be supported by an employment contract or agreed terms
- The employee cannot start a new job during garden leave unless they have written permission
- Normal pay and contractual benefits usually continue throughout the notice period
- Using garden leave can help reduce risk and provide a smooth handover when an employee leaves the business
FAQs
Is garden leave legally recognised in Australia?
Garden leave is not a standalone legal concept, but it can be used where an employment contract allows an employee to be required not to work during their notice period while remaining employed.
Why do employers use garden leave?
Employers use garden leave to protect sensitive information and business relationships while the employee transitions out of the company.
Can employees start a new job while on garden leave?
Generally, no. Employees are still under contract and usually cannot start another job until garden leave ends.
Are employees paid while on garden leave?
Yes. Employees continue to receive their normal salary and benefits during garden leave.
Does an employee need to be available to work during garden leave?
Yes. Employers may require employees on garden leave to answer questions, provide handover information or attend meetings.
