World · India Bureau
Garden Leave: Indian Companies Pay Full Salary Without Work
A growing practice in India's corporate sector sees employees receive their full monthly salary without reporting to office or performing work duties. Known as 'garden leave,' the arrangement is initiated by companies themselves as part of employment management.
LSN India ·

In the conventional employment model, salary is contingent upon work performed and office attendance. However, India's corporate world has developed an alternative arrangement that challenges this norm, allowing employees to draw their complete monthly compensation without stepping into the office or fulfilling regular duties.
This practice, termed 'garden leave,' represents a deliberate strategy adopted by companies to manage their workforce. Rather than employees requesting time off, the company itself directs the worker to remain away from the office while continuing to pay their full salary.
Garden leave typically occurs during transitional periods in employment relationships, including notice periods following resignation or during organizational restructuring. The arrangement serves multiple purposes: it prevents departing employees from accessing sensitive company information, reduces potential disruptions to ongoing projects, and maintains employee morale during uncertain periods.
While the concept originated in Western corporate practice, Indian businesses have increasingly adopted garden leave as a standard human resources tool. The policy underscores evolving corporate strategies that prioritize organizational security and employee welfare simultaneously, representing a shift from traditional productivity-based compensation models.