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MK Law Group

Employment Law

Gardening Leave and Restraint Lawyers in Melbourne

Gardening leave is the pause an employer buys while it works out how hard to fight your exit. What you do during those weeks, and what you sign at the end of them, can shape your next job and sometimes your next year.

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Sent home on full pay while your employer decides what to do with you?

Gardening leave is the pause an employer buys while it works out how hard to fight your exit. What you do during those weeks, and what you sign at the end of them, can shape your next job and sometimes your next year.

A polite exit with a tactic behind it

You resign, or you are given notice, and the next morning your access pass stops working. You are told to stay home on full pay, hand over your files, and speak to no clients. That is gardening leave. It feels like paid holiday, but it is doing work for the employer. You are off the market, your client relationships go cold week by week, and the clock runs down while the employer gets itself into position for the restraint fight that may follow.

The weeks you spend on gardening leave are exactly when the important decisions get made: what you may sign with your next employer, when you can start, what the deed of release should say, and whether the restraint in your contract would actually survive a courtroom. If you are on gardening leave now, or expect to be by Friday, call 1800 130 120. The first call is free, and exits move quickly.

Still employed, still bound

Gardening leave is paid time away, but it is not freedom. Your employment continues and so do your duties of loyalty and fidelity, which means you cannot work for a competitor, solicit clients or quietly recruit your old team while it runs. Employers watch departing senior staff closely during this period, and one misstep hands them the injunction application they were hoping for.

The obligations run both ways, though. The employer needs a contractual right to sideline you at all, must keep paying salary, superannuation and benefits in full, and for roles where reputation and skills depend on actually working, courts have recognised a right to work that a forced benching can breach. When an employer gets this wrong, the restraint it most wants to enforce is often the first casualty.

An executive employment agreement open at a restraint of trade clause on a Melbourne boardroom table

Get the contract read before you make a move

Send us your contract and the exit correspondence. Within days you will know whether the gardening leave direction is even valid, what you can safely do before your end date, whether the restraint is enforceable at its written length or only some fraction of it, and what you should be negotiating into the deed. Executives who get this advice before resigning consistently exit on better terms than those who call us after signing.

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The restraint is usually softer than it reads

Post-employment restraints, whether non-competes, client non-solicits or staff non-poaching clauses, are void in Victoria unless they protect a legitimate business interest and go no further than reasonably necessary in duration, geography and scope. Victoria has no legislation letting courts trim an overreaching clause down to something fair, so a badly drafted restraint can fail entirely. Restraints are one of the corners of employment law in Victoria that the Fair Work system does not reach at all, which is why your contract, rather than a tribunal, decides this fight. The same wording gets fought over in commercial contracts between businesses, and the reasonableness question asked there is the one a court will ask about your clause too. Time already spent on gardening leave also counts: an employer who kept you benched for six months has already had six months of protection, and courts weigh that against any further restraint.

Most restraints are drafted with the negotiation in mind rather than the courtroom. The clause is written wide because a wide clause frightens people. Whether it would actually hold up is a separate and much shorter question.

MK Law Group

There is also a change coming. The federal government has announced a ban on non-compete clauses for workers earning under the high income threshold, slated for 2027, though as at August 2026 it has not been legislated. Today’s disputes are still decided under the current law, so an exit happening now needs the clause read by someone practising employment law as it stands rather than as it may look in 2027.

Before you resign, before you sign

The two most expensive moments in an exit are the resignation you send without advice and the deed you sign without a review. If a general protections or dismissal angle is hiding inside your exit, wrongful termination is where that starts. Anyone who sits on the board as well as the payroll has a second exit running at the same time, and that one belongs with director disputes, because resigning a directorship and resigning a job are not the same act and rarely have the same timing. Call 1800 130 120 or use the form on this page. The first call is free, and the point of it is to get you advice while you can still act on it, rather than after the fact.

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Meet the firm

Michael Kuzilny

Founder & Principal, MK Law Group

Michael has been working in the Victorian legal system since 1986. MK Law Group acts for individuals, family businesses, and commercial clients across Melbourne, with a senior lawyer on every file from the first call.

"We take on the matters we know we can run well, and we are direct about the ones we cannot."

  • Practising in Victoria since 1986
  • Senior lawyer on every file from day one
  • Free initial advice on every new matter

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FAQs

Frequently asked questions

  • What is gardening leave?

    A direction to stay away from work during your notice period while remaining employed on full pay and benefits. You keep your salary; the employer keeps you out of the office, away from clients and colleagues, and off the market. It is common in executive, sales and client-facing exits where the employer worries about what you could take with you.

  • Can my employer force me onto gardening leave?

    Only if the contract allows it, expressly or by clear implication. For some roles, courts have recognised a right to actually work, not merely be paid, and sidelining such an employee without a contractual right can itself breach the contract, which can undermine the restraints the employer is relying on. This is one of the first things we check when we read your contract, and it changes the negotiating position considerably.

  • Can I start with a competitor while on gardening leave?

    No. You are still employed, so your duties of loyalty and fidelity continue for the entire notice period. You generally should not work for anyone else, approach clients, or recruit former colleagues while on gardening leave. What you can do is prepare: sign contracts commencing after your end date, and plan the move. Where the line sits in your situation is a short conversation, and getting it wrong invites an injunction.

  • Is my non-compete clause actually enforceable?

    Restraints are unenforceable unless they go no further than reasonably necessary to protect a legitimate business interest, and in Victoria that is pure common law with no rescue statute for the employer. Courts regularly refuse to enforce restraints that are too long, too wide or too vague, and time already served on gardening leave counts in your favour when a court weighs how much protection the employer really needs. Many scary-looking clauses do not survive a lawyer's letter.

  • Is it true non-competes are being banned in Australia?

    The federal government has announced a ban on non-compete clauses for employees earning under the high income threshold ($190,100 for 2026-27), intended to operate from 2027. As at August 2026 the legislation has not been passed, so existing clauses still apply today and are still fought on ordinary reasonableness grounds. If someone tells you your clause is already dead, get a second opinion before acting on it.

  • Should I sign the deed of release my employer sent?

    Not before a lawyer reads it. Deeds routinely add new restraints that never appeared in your contract, extinguish claims you have not valued, and deal with bonuses and equity in the employer's favour. The deed stage is also your best leverage point, because the employer wants certainty. A lawyer's review before signing regularly pays for itself many times over. Call 1800 130 120 before you sign.

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