What Is Garden Leave?
Garden leave is a period during which an employee remains on payroll after resigning or being given notice of termination but is not required to work.
During garden leave, the employee typically:
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Continues to receive salary and benefits
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Remains bound by contractual obligations
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Is restricted from starting work with a competitor
Garden leave is most common in senior, client-facing, or commercially sensitive roles.
Why It Matters to Employers
Garden leave protects your organization during transition periods.
It can help you:
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Safeguard confidential information
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Protect client and employee relationships
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Reduce competitive risk
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Ensure a smooth leadership or talent transition
By keeping the employee employed but away from active business operations, you limit disruption while maintaining legal and contractual control.
When and How Employers Use Garden Leave
Employers typically use garden leave when:
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A senior leader resigns to join a competitor
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A role involves sensitive intellectual property
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Client poaching risk is high
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A business is undergoing restructuring
Garden leave must be supported by clear contractual terms and local employment law compliance. Before implementing it, employers should review employment agreements and seek legal guidance to ensure enforceability.
Used appropriately, garden leave is a strategic risk-management tool — not simply a delay tactic.
