When you resign or are let go, two things often cause confusion: what happens during garden leave and how your final pay is worked out. Understanding garden leave in Singapore and the way your last salary is settled helps you leave on good terms and plan your finances. This article is general information and not legal advice, so read your own employment contract and check the Ministry of Manpower (MOM) and the Tripartite guidelines for the rules that apply to you.
What garden leave means
Garden leave is when your employer asks you to stay away from work during your notice period while still keeping you on the payroll. You remain an employee, you continue to be paid, and you keep your benefits, but you do not come into the office or do your normal duties. The name comes from the idea of staying home, perhaps tending the garden, until your last day passes.
Employers use garden leave mainly to protect the business. It keeps a departing employee, especially one moving to a competitor, away from clients, colleagues and sensitive information while the notice period runs down. Because you are still employed, you generally cannot start a new job elsewhere until your notice ends.
When garden leave applies
Garden leave is not automatic. It usually applies only where your contract allows it, or where you and your employer agree to it. It is more common for senior staff, those in sales or those with access to confidential information.
During garden leave, your duties of loyalty to your current employer usually continue. That typically means you should not solicit clients, poach colleagues or share confidential material, since you are still on the books. Your contract may also spell out what you can and cannot do during this time.
What stays the same and what changes
While on garden leave, several things typically continue.
- Your salary continues to be paid as normal.
- Contractual benefits usually continue unless your contract says otherwise.
- Your leave may continue to accrue, depending on the terms.
- You remain bound by confidentiality and any restrictions in your contract.
What changes is that you stop performing your role. Your employer may also ask you to return company property, hand over work and stay contactable in case questions arise.
How final pay is worked out
Final pay is the total your employer owes you when employment ends. It is settled after your last day, and the timing and components depend on your contract and the rules that apply. Rather than quote figures, which vary by contract and can change, this guide focuses on the parts you should check.
Your final pay commonly brings together your salary up to your last day, payment for any unused annual leave that is payable under your terms, and any amounts specifically owed under your contract, such as an outstanding allowance. Deductions that are permitted, for example authorised recoveries, may be netted off. Always look at your payslip and contract to confirm the components, and ask your HR team if anything is unclear.
Notice, and pay in lieu of notice
Sometimes the employment ends before the notice period runs its course. In that case one side may pay the other salary in lieu of notice, meaning a payment instead of working the remaining notice. Whether this applies, and how it is calculated, depends on your contract and the situation, so check your terms rather than assuming a fixed amount.
Comparing common end-of-employment scenarios
The table below compares situations you might meet. The exact entitlements depend on your contract, so treat this as an overview.
| Scenario | Do you work? | Are you paid? | Can you start a new job? |
|---|---|---|---|
| Working your notice | Yes | Yes | After notice ends |
| Garden leave | No | Yes | After notice ends |
| Salary in lieu of notice | No | Paid a lump sum | Once employment ends |
| Immediate release by mutual agreement | No | Per agreement | Once employment ends |
Steps to protect yourself
A little organisation makes the handover smoother and the final pay cleaner.
- Read your contract closely for clauses on notice, garden leave and final pay.
- Confirm in writing what your last day is and whether you are on garden leave.
- Keep copies of your payslips, leave records and any allowance letters.
- Ask HR for a breakdown of your final pay before it is processed if you can.
- Return company property promptly and get acknowledgement of the handover.
- Clarify whether unused leave is being paid out or must be cleared.
Common questions
Can I take another job during garden leave? Usually not until your notice ends, because you remain employed. Check your contract and speak to your employer.
Is garden leave the same as being suspended? No. Suspension often relates to an investigation, while garden leave is simply keeping you away during notice. Your pay normally continues in both, but the reasons differ.
When will I receive my final pay? The timing depends on your contract and the applicable rules. If you are unsure, ask HR and, if needed, check MOM guidance.
If something does not look right
If your final pay seems incorrect, start by comparing your payslip against your contract and raising it calmly with HR. Many issues are simple errors that are quickly fixed once flagged. If a genuine dispute remains, MOM provides avenues for salary-related matters, and the Tripartite guidelines set out fair practices you can refer to.
Closing thoughts
Garden leave and final pay sound daunting, but they become manageable once you know what to expect. During garden leave you stay paid while staying away, and your final pay simply gathers what you are owed up to your last day. Read your contract, keep good records, and ask questions early. For anything specific to your situation, rely on your contract and the guidance from MOM rather than on general rules of thumb.
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