Garden Leave (also called gardening leave) is a practice where an employee who has resigned or been terminated is instructed to stay away from work during their notice period, while still remaining on the payroll and receiving their regular salary and benefits. This is common in senior or sensitive roles where the employer wants to restrict the employee’s access to confidential information, clients, or competitors before they officially leave. While on garden leave, the employee is still legally employed and often bound by contractual obligations, including non-compete and confidentiality clauses.
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Key Facts
- Purpose: To protect company interests by limiting an employee’s activities before departure.
- Paid Leave: Employees remain on payroll and retain benefits during the garden leave period.
- Restricted Activities: Employees may be prohibited from working elsewhere or contacting clients or colleagues.
- Common in High-Risk Roles: Often used for executives, salespeople, or employees with access to trade secrets.
- Enforceability: Depends on employment contracts and local labor laws; not all jurisdictions recognize garden leave.
1. What is garden leave?
Garden leave is a period during which an employee stays away from work after resigning or being terminated but continues to receive full pay and benefits.
2. Why do employers use garden leave?
To protect confidential information, client relationships, and prevent immediate competition by sidelining the employee during their notice period.
3. Can an employee work elsewhere during garden leave?
Typically no. Most garden leave clauses prohibit the employee from starting a new job or engaging in work for competitors during this period.
4. Is garden leave legal in the U.S.?
It depends on the state and the employment contract. While common in the U.K. and other countries, garden leave is less standardized in the U.S. and must comply with local laws.
5. Does time spent on garden leave count toward employment?
Yes. The employee is still officially employed and may continue to accrue benefits like vacation time or pension contributions, depending on the employer’s policy.
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