Have you been curious as to why certain employees are paid to sit at home during their notice periods? Enter the world of “garden leave,” something that is gaining more and more popularity in Singapore’s corporate landscape. To understand its implications further for both employers and employees, let us rewind.
What Is Garden Leave Exactly?
Think of garden leave as transferring work to the ‘off’ position: at times when there is resignation or notification of termination, garden leave requires that the employee stays at home during the notice period, receiving a salary and benefits all the same. The term has its origins in Britain; apparently, it was thought then that one would spend time tending to the garden during this time.
The Use of Garden Leave in Singapore by Companies
Garden leave provides myriad strategic purposes to the organizations in the Singaporean fast-paced business environment:
- Confidentiality
Let us be honest: Information is gold in the interconnectedness of present-day business. Garden leave is utilized to protect access to strategies, client information, or trade secrets for departing employees, especially when they are going to their rivals. This was borne out through a study conducted by Singapore Management University (SMU), with 76% of companies indicating data protection as the primary reason informing the implementation of such policies.
- Client Management
If you’re relationship management-based (on the front lines of clients), then you have to look at them as shared assets. Garden leave will help to carry out management for transferring the relationship with clients in a manner that will not allow them to get drawn into the new jump you’re going to make.
- Transition of Team
Garden leave allows time for a successful passing of the baton, in much the same way as happens in a relay baton pass, allowing for a turnaround in one’s ongoing duties and projects.
Legal Framework in Singapore
Here’s where things get interesting. In Singapore, garden leave isn’t explicitly covered by the Employment Act, but it’s governed by contract law and common law principles. The Ministry of Manpower (MOM) recognizes it as a legitimate practice when properly incorporated into employment contracts
Garden Leave Meaning: Key Considerations for Employers
For an employer considering whether to implement garden leave programmes, the below factors should be taken into consideration:
- Contract Clarity
- Put in garden leave clauses
- Make it clears what the trigger circumstances are
- Specify how long the period is and what terms do you want to enforce
- Financial side
- Must be full salary continuance
- Any applicable benefits must continue
- Bonus and commission considerations
- Enforceability
- Must be reasonable in duration
- Should protect legitimate business interests
- Cannot be purely punitive
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Garden Leave Meaning: Employee Rights and Obligations
If you are on Garden Leave, here is what you need to know:
- What You Can Do:
- Receive a complete salary and benefits
- Take a long and well-deserved vacation (with approval)
- Start planning your next career move
- What You Cannot Do:
- Work with another employer
- Request for clients or colleagues with business in mind
- Use confidential information
A Garden Leave That’s Worth It
Being on garden leave doesn’t require you to garden providing you simply don’t want to! Here are some productive ways of utilizing this time:
- Professional Development
- Posting for other online courses
- Work towards updating skills
- Attend virtual conferences
- Personal Growth
- Fitness and wellbeing focus
- Hobbies
- Spend time With family
- Strategizing Career
- Define career goals
- Networking
- Get ready for the next career transition
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Going Forward
Singapore’s business environment will continue to unfold, and garden leave ought to be a useful best practice when it comes to managing senior-level transitions. The core element is in maintaining the right balance between protecting business interests while maintaining fair employment practices.
It is worth noting that garden leave’s purview broadly really falls under one of two umbrellas: working the smoother transitions into senior-level positions and protecting legitimate business interests while ensuring the continuity of professionalism.
So, the next time you hear that someone is on garden leave, you need not think of tending to some garden flower- this sophisticated method performs a high and mighty task within Singapore’s corporate arena.
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