{"id":2370,"date":"2020-12-24T10:31:08","date_gmt":"2020-12-24T00:31:08","guid":{"rendered":"https:\/\/nz.legalvision.com.au\/?p=2370"},"modified":"2024-05-17T15:32:32","modified_gmt":"2024-05-17T02:32:32","slug":"garden-leave","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/garden-leave\/","title":{"rendered":"What is Garden Leave in New Zealand?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Garden leave is where an employee receives full pay from a business, is otherwise fully employed, but does not come to work and usually does not complete any work from home. While garden leave is not technically a legal concept under employment law in New Zealand, it is a relatively common occurrence when an employee has given notice to resign, or when a difficult situation has arisen. However, there is a lot of uncertainty around:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">this type of leave;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">its legality; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">when it can be used.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">This article will:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">set out how this type of leave works;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">address the common misconception that it is the same as a suspension; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">discuss when you should consider this type of leave in your own business.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">How Garden Leave Works<\/span><\/h2>\n<p><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.nz\/employment\/garden-leave-business\/\">Garden leave<\/a> must be agreed to by both the employee and the employer. Essentially, the employee agrees to go home and not report for work for a given period of time. You should only put an employee on this type of leave if there is a provision for garden leave in the employee\u2019s <\/span><a href=\"https:\/\/legalvision.co.nz\/employment\/reviewing-employment-agreement\"><span style=\"font-weight: 400\">employment agreement<\/span><\/a><span style=\"font-weight: 400\">, which they have entered into in good faith.<\/span><\/p>\n<p><span style=\"font-weight: 400\">These leave provisions in employment agreements can be general or specific.<\/span><\/p>\n<p><span style=\"font-weight: 400\">With any provision, as an employer you will still need to act fairly and reasonably when activating the provision. There are two types of garden leave provisions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">specific clauses; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">general clauses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Specific clauses refer to his type of leave being taken in a limited circumstance.<\/span><\/p>\n<p><span style=\"font-weight: 400\">For example, a clause that states the employer may direct an employee not to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">report to work;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">undertake work-related duties; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">contact customers or clients during their notice period, but that the employee will receive their full pay for this time.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">General clauses give the employer the ability to direct an employee not to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">report to work; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">do work-related duties at any time and for any reason, but the employee will receive their full pay for this time.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Is Garden Leave The Same As a Suspension?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Suspension and garden leave are different things. The key difference is that you can suspend an employee without their agreement if you have followed a fair process and the other legal requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Suspension is often forced during an employment investigation. Suspending an employee has various procedural requirements. Garden leave should never be used to get around those procedural requirements, like the need for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">appropriate grounds for suspension; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a correct process.<\/span><\/li>\n<\/ul>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                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The two main examples are where:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">an employee has resigned and is on their notice period; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">there is a difficult situation in a workplace.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Garden leave may be useful when an employee on their notice period has access to commercially sensitive information and is going to be working for a competitor at the end of their notice period. This type of leave means that that employee stops accessing commercially sensitive information in their day-to-day work.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Any <\/span><a href=\"https:\/\/legalvision.co.nz\/employment\/restraint-of-trade\"><span style=\"font-weight: 400\">restraint of trade<\/span><\/a><span style=\"font-weight: 400\"> provision takes effect after the employee\u2019s employment ends. If an employee\u2019s employment agreement contains both a garden leave provision and a restraint of trade provision, the period the employee is on this leave will be taken into consideration in working out whether or not the restraint of trade provision is reasonable.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In a situation where there is a difficult relationship situation at work and you consider that it would help in taking heat out of the situation if one (or both) of the parties stopped attending work while the parties go through counselling or another process. In this type of situation, the employer would need to make sure that the employee agrees so it is clear they are not being suspended or punished, particularly if a formal process has not\u00a0 taken place.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Garden leave is where an employee receives full pay from your business and is otherwise fully employed, but does not come to work and typically does not complete any work from home. It is a useful option in instances where the business would be better off with an employee at home, such as when they have resigned to work for a competitor but have access at work to sensitive information. However, you should ensure that there is a garden leave provision in your employees\u2019 employment agreements that clearly sets out when and how this leave can be used. If you want to know more about this type of leave, feel free to call <\/span><a href=\"https:\/\/legalvision.co.nz\/employment-lawyers-lp\"><span style=\"font-weight: 400\">LegalVision\u2019s employment lawyers<\/span><\/a><span style=\"font-weight: 400\"> on 0800 005 570, or complete the form on this page.<\/span><\/p>\n<h2>FAQs<\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1606880228344\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What if my employee refuses to go on garden leave?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">Usually, an employee\u2019s agreement will be required for them to go on garden leave. It may depend on what the the leave provision in the employee\u2019s employment agreement provides for. If there is no leave provision of this type, you should not put the employee on this type of leave. Depending on the circumstances, you should possibly consider suspension.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Is garden leave the same as a suspension?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">No, they are different things. Suspension can be done unilaterally, ie without the employee\u2019s agreement, but requires that you follow a fair process and other requirements.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Can I refuse to pay employees on garden leave?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">No. All employees on this type of leave should be paid their full pay.<\/p> <\/div> <\/div>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>Garden leave is where an employee receives full pay from a business, is otherwise fully employed, but does not come to work and usually does not complete any work from home. While garden leave is not technically a legal concept under employment law in New Zealand, it is a relatively common occurrence when an employee<a href=\"https:\/\/legalvision.co.nz\/employment\/garden-leave\/\">Continue reading <span class=\"sr-only\">&#8220;What is Garden Leave in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13235,"featured_media":142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"225125,208988,209120,208379,223700,1846","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[24,25,54,184,191,414],"class_list":["post-2370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-startup","tag-small-business","tag-medium-business","tag-leave","tag-employees","tag-garden-leave"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Garden Leave in New Zealand? | LegalVision<\/title>\n<meta name=\"description\" content=\"Are you an employer looking to place employees on garden leave in New Zealand? 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