Garden leave

What it is

Garden leave is a period when an employee who has resigned or been given notice is asked not to come to work. They are still employed, still paid their normal salary and benefits, and still bound by their contract. They simply do not do any work, contact clients or join company systems until their employment ends.

The name comes from the idea that the person has nothing to do but tend their garden. The term is most common in the UK, Ireland, Australia and parts of Europe, and it is used in finance and sales roles in the US too. Rules vary by country, so this is general information, not legal advice.

Why it matters

Garden leave protects the business when someone is moving to a competitor or holds sensitive information. During the notice period they cannot start a new job, because they are still your employee. That gives the company time to move client relationships, update plans and let fresh information go stale.

It can also make a tense exit calmer for everyone. Instead of a leaver sitting in meetings for a month, the team can move on while the person is treated fairly and paid in full.

How it works

In most places, an employer can only use garden leave if the employment contract allows it, or if the employee agrees. The usual steps are:

• The employee resigns or is given notice.
• The employer decides garden leave is needed and confirms it in writing.
• The letter sets out dates, pay, benefits and what the person must not do.
• Access to systems is removed and equipment is returned.
• The person stays on payroll until the end of notice, then leaves as normal.

Example: a senior account director resigns to join a rival agency and has a three-month notice period. Her contract includes a garden leave clause, so her manager confirms in writing that she will spend the full three months on garden leave. She keeps her salary and benefits, hands over her client list in one meeting and cannot start at the rival until her notice ends.

Best practices

• Include a clear garden leave clause in contracts for senior and client-facing roles.
• Confirm the terms in writing, including what contact with clients and colleagues is allowed.
• Plan the knowledge transfer before the leave starts, not after.
• Remove access on the first day of garden leave, as part of your offboarding process.
• Get local legal advice before relying on garden leave, especially across several countries.

Common mistakes

• Placing someone on garden leave with no contract clause and no agreement.
• Cutting pay or benefits during the leave period.
• Forgetting to tell clients and the team who is now their contact.
• Treating garden leave as a punishment instead of a business decision.

FAQ

Do you get paid on garden leave?

Yes. The person stays employed and should receive their normal salary and benefits until their employment ends. Bonus and commission rules depend on the contract and local law.

Can you work for another company during garden leave?

Usually not. The employee is still under contract with their current employer, so starting a new job or working for a competitor is normally a breach. Any exception should be agreed in writing.

What is the difference between garden leave and a non-compete?

Garden leave happens while the person is still employed and paid. A non-compete clause applies after employment ends and limits where they can work next. Many countries treat non-competes more strictly. For broader context, see our international employment guide.