What does garden leave mean?
Garden leave, sometimes called gardening leave, is a period during which an employee is still employed but is not required to carry out normal work. It usually happens after the employee has resigned or after the employer has given notice of termination.
During garden leave, the employee may be asked not to access company systems, contact clients, attend meetings, or work for a competitor. The employment relationship normally continues until the notice period ends, so salary, benefits, confidentiality obligations, and other contract terms may still apply unless the contract or local law says otherwise.
Garden leave is often used for senior employees, sales roles, finance roles, product roles, client-facing employees, or anyone with access to sensitive information. It gives the employer time to manage handover, protect business relationships, and reduce the risk of confidential information being used immediately elsewhere.
Why garden leave matters for employers
Garden leave matters because employee exits can create business risk. When an employee leaves for a competitor, has access to client lists, manages financial information, or holds strategic knowledge, the company may want a controlled transition instead of allowing the employee to continue normal work until the final day.
This does not mean employers can use garden leave casually. The right to place an employee on garden leave should normally be supported by the employment contract, company policy, or local employment rules. If the arrangement is not clearly written, the employee may question whether the employer can restrict their work while still keeping them employed.
In Singapore, the Ministry of Manpower’s guidance on termination with notice explains that employees serving notice are still considered employees during the notice period. This is relevant to garden leave because the employee usually remains employed even when they are not doing active work.
Garden leave in cross-border teams
Garden leave should be checked carefully when managing employees in different countries. A company may be used to garden leave in its home market, but employees based in Indonesia, the Philippines, Malaysia, Vietnam, or Thailand may be subject to different employment contract rules, wage payment rules, notice requirements, and termination practices.
For remote teams, garden leave may be used to manage system access, handover, client communication, and data security. A practical approach is to confirm the employee’s last working day, notice period, pay treatment, access restrictions, return of company property, confidentiality obligations, and final pay process before placing the employee on garden leave.
If the employee is hired through an Employer of Record, the client company should coordinate with the EOR before taking action. Weshine’s Employer of Record service can support businesses hiring employees in Southeast Asia without setting up a local entity, including employment documentation, payroll, and offboarding coordination.
Common mistakes employers should avoid
A common mistake is assuming garden leave is automatically allowed. The employer should check the employment contract and local requirements before restricting an employee’s work during notice.
Another mistake is confusing garden leave with immediate termination. In garden leave, the employee normally remains employed until the notice period ends. This means payroll, benefits, confidentiality, and other employment obligations may continue.
Employers should also avoid using garden leave without a clear business reason. If the employee has no access to sensitive information, clients, systems, or competitive risk, a normal handover may be enough.
For country-specific employment and termination considerations, employers can review Weshine’s Southeast Asia country guides before applying one exit process across multiple markets.
