Why gardening leave matters to a first-time founder
It can protect current client relationships, confidential information and team stability while keeping the departing employee away from active work. The company normally continues contractual pay and benefits. Enforceability and permitted restrictions depend on the contract and local employment law, so improvising the arrangement creates risk.
Examples of gardening leave
A UK sales director gives three months’ notice. The employer invokes a written garden-leave clause, continues salary and contractual benefits, removes system access and requires availability for reasonable questions. The director remains employed during the period and cannot start work for a competitor until employment ends.
Common misunderstanding
It is not unpaid suspension, immediate dismissal or payment in lieu of notice. Employment continues during garden leave, even though normal duties stop. Payment in lieu usually ends employment and replaces the notice period with money, subject to the contract and applicable law.
When to use it
Consider it when a departing senior employee has sensitive information or influential customer relationships and the employment contract supports it. Plan access, communications, duties and benefits in writing. Take local employment advice before imposing it, especially if the clause is absent or the proposed restriction is lengthy.