What is the law on garden leave in Myanmar?
Garden leave is legal in Myanmar if expressly provided in the employment contract. During garden leave, the employee remains on payroll, salary continues, and the employee does not work. The Employment & Skills Development Law (ESDL) 2013 framework treats garden leave as an alternative to having the employee work the notice period, often paired with non-compete and NDA enforcement.
What Myanmar law says
Garden leave is the practice of placing an employee who has resigned (or been given notice) on paid leave during the notice period — the employee remains on payroll, salary continues, but no work is performed and access to clients and confidential information is removed. Myanmar law does not specifically regulate garden leave under the Employment & Skills Development Law (ESDL) 2013, but it is a recognised contractual mechanism. Garden leave is legal and enforceable if provided in the contract, and is often paired with non-compete and NDA enforcement to manage the leaver's transition.
What garden leave covers
- Employee remains on the payroll for the notice period.
- Salary, allowances, and benefits continue at the contract level.
- Employee does not perform duties; access to systems is removed.
- Restrictive covenants (non-compete, non-solicit, NDA) continue in force.
- SSB and PIT continue to be withheld and remitted in the normal way.
- Annual leave does not typically accrue during garden leave (per contract).
Garden leave vs related concepts
| Concept | Working? | Salary? | Tenure continues? |
|---|---|---|---|
| Garden leave | No | Yes | Yes |
| Pay in lieu of notice (PILON) | No | Lump sum | No (already separated) |
| Working out notice | Yes | Yes | Yes |
| Suspension (pending investigation) | No | Usually yes | Yes |
| Annual leave during notice | No | Yes | Yes |
What if there's a dispute
- Township labour office first — common claim is garden leave imposed without contractual basis.
- Conciliation Body — formal conciliation under the Settlement of Labour Disputes Law.
- Arbitration Council — final binding step. Statute of limitations: typically 6 months.
Employer takeaway
Include a garden-leave clause in employment contracts for senior or client-facing roles. Activate by written notice, continue full salary and benefits, and remove system access on day one of garden leave. Pair garden leave with non-compete and NDA enforcement. At the end of the notice period, run the final settlement (outstanding wages + leave encashment) within 7 days, deregister from SSB within 30 days, and keep records for at least 7 years.
Edge cases and unenforceable clauses
- Garden leave without contractual clause — risk of dispute over the imposition; generally enforceable if salary continues.
- Annual leave accrual during garden leave — depends on contract; many policies exclude.
- Garden leave during gross-misconduct termination — atypical; suspension pending investigation more apt.
- See pay in lieu of notice.
Common garden-leave mistakes
- Imposing garden leave without a contract clause and without continuing pay.
- Failing to remove system access on day one.
- Forgetting that SSB and PIT continue during garden leave.
- Treating garden leave as unpaid suspension.
- Employment & Skills Development Law (ESDL) 2013 — notice provisions
- Notification 84/2015 (or current) — termination framework
- QHRM Myanmar Termination Compliance Guide
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