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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Part or all of a notice period during which the employee remains employed and paid but is told not to come to work or contact clients. It keeps the person away from sensitive work and contacts while their contractual duties continue until the last day.
Garden leave is decided at the resignation meeting, usually for sales, client-facing or senior roles. HR issues a short letter stating the start date, that salary and benefits continue, that the employee must stay reachable and must not contact clients, and that system access is being withdrawn.
Payroll treats the period as ordinary paid service: salary, PF, ESI where applicable, and leave accrual if the policy says so. The person is still an employee, so service for gratuity continues to count up to the last working day, which can matter when someone is close to completing a year that counts.
The mistake is calling it garden leave while stopping pay or treating it as an early exit date. That converts it into something else and invites a dispute. Also ensure IT revokes access on the first day, since the whole point is to keep the person away from data and customers.
Yes. They remain an employee until the last working day, so salary, PF and other statutory contributions continue as normal.
With garden leave the employment continues through the notice period while the employee stays away. With notice pay the employment ends early and the unserved period is paid out.
Not while still employed, because the contract and its duties continue until the last day. They can join only after the relieving date.
It is safest to have one. Without it, telling someone to stay away still means paying them in full and keeping all other terms the same.
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