Employment law in most EU member-countries adequately addresses the regulation of modern forms of employment, which became even more apparent during the pandemic.
One of these provisions of the Employment legislation is the so-called “Gardening Leave”. Gardening leave describes the process when an employee leaving a job – having resigned or otherwise had their employment terminated and paralell gives the right to the employer to instruct the specific employee not to attend the workplace or perform duties but remains on full remuneration.
by Thanos S. Chonthrogiannis
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In this case, the parties are not unusual to agree to the non-employment of the employee from the time of joining the program until the termination of the employment contract, while the employee receiving the remuneration of the respective period. Another case when Gardening Leave is implemented is when the employer may ask his employee not to come into work, or to work at home (i.e., during pandemic) or another location during the notice period. The employee will get the same pay and contractual benefits.
Gardening Leave as a process has for many years been used mainly for senior executive employment contracts, to guarantee that the any departure of key individuals has the minimum cost on the reputation and ongoing success of the company under consideration.
Benefits & Costs
The “Gardening Leave” provision provides benefits to both the employer and the employee.
It should therefore be widely used by employers to protect and minimize the impact in the reputation of their business when deciding to terminate the employment relationship at the employer’s initiative. It is commonly used for senior employees who have greater access to restricted or confidential information or who have secured a new role in a competitor, keeping away the leaving employee from clients, colleagues and confidential information.
Through the implementation of Gardening Leave, employers can now benefit from the payment of reduced severance pay, which means termination of a contract with notice period, while ensuring that the departure of employees has little or no impact on the operation of the company. In some EU member-countries and in UK during the notice period the salary payments and benefits provisions of the contract is effectively served.
The employee who leaves through the Gardening Leave application, ensures that, during the notice period, he will continue to be considered an employee of the employer company, receiving full pay and severance pay, while having the opportunity to focus and plan his future professional steps, using the notice leaving period.
However, in some cases severe employees that they found themselves under Gardening Leave program refusing to comply with the old’s employer’s requirements and starting employment with their new employer. The old employer has two choices in this case, either to let the matter pass or suing for damages.
Gardening Leave helps businesses gradually return to normal after the end of the pandemic. As companies increasingly realise the need to renew their employment policies and secure best practices to comply with the requirements of the ESG criteria, through their integration into their employer standards.
The fair treatment of employees by employers based on “correct” working standards, is the main foundation for increasing efficiency and productivity and the overall “value” of a company that wants to present and have a positive face.
Certainly, in the future there will be further modifications and improvements, but the foundations have been laid for a better working future.
