{"id":1945,"date":"2024-12-11T23:25:41","date_gmt":"2024-12-12T04:55:41","guid":{"rendered":"https:\/\/peoplecentral.co\/blog\/?p=1945"},"modified":"2025-01-08T01:54:07","modified_gmt":"2025-01-08T07:24:07","slug":"garden-leave-a-comprehensive-overview","status":"publish","type":"post","link":"https:\/\/peoplecentral.co\/blog\/garden-leave-a-comprehensive-overview\/","title":{"rendered":"Garden Leave: A Comprehensive Overview"},"content":{"rendered":"

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.<\/span><\/p>\n

What Is Garden Leave Exactly?<\/b><\/h2>\n

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.\u00a0<\/span><\/p>\n

The Use of Garden Leave in Singapore by Companies<\/b><\/h2>\n

Garden leave provides myriad strategic purposes to the organizations in the Singaporean fast-paced business environment:<\/span><\/p>\n

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  1. Confidentiality<\/b><\/li>\n<\/ol>\n

    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.<\/span><\/p>\n

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    1. Client Management<\/b><\/li>\n<\/ol>\n

      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.<\/span><\/p>\n

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      1. Transition of Team<\/b><\/li>\n<\/ol>\n

        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.\u00a0<\/span><\/p>\n

        Legal Framework in Singapore<\/b><\/h2>\n

        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 <\/span>Ministry of Manpower (MOM)<\/b><\/a> recognizes it as a legitimate practice when properly incorporated into employment contracts\u00a0<\/span><\/p>\n

        Garden Leave Meaning: Key Considerations for Employers<\/b><\/h2>\n

        For an employer considering whether to implement garden leave programmes, the below factors should be taken into consideration:<\/span><\/p>\n

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        1. Contract Clarity<\/b><\/li>\n<\/ol>\n