Garden Leave

Garden leave is a period during which an employee who has resigned, or in some cases has been given notice of termination, is required to stay away from work while remaining on the company payroll and often still bound by their contractual obligations, including confidentiality and non-compete provisions. During this time, the employee typically does not perform any active job duties, but continues to receive their salary and benefits as though they were still working. Companies use garden leave for several practical reasons, most commonly to protect sensitive business information or client relationships by keeping a departing employee away from active work and client contact while they transition out, or to allow time for a smooth handover before the employee formally starts a role with a competitor. Because the employee remains employed and paid throughout this period, it differs from severance, where the employment relationship has already formally ended. Garden leave is more commonly used in certain countries and industries, particularly in the United Kingdom and other jurisdictions with strong traditions of enforcing employment contract terms, and it is less universally standard in the United States. Employers considering garden leave provisions need to ensure the arrangement is clearly documented in the employment contract from the outset, since imposing it without a contractual basis can create legal complications.