What Is Garden Leave?

Garden leave lets an employer keep a departing employee on the payroll while temporarily removing them from their usual work. It most often applies during a notice period after an employee resigns or receives notice of a future end date. The employee generally remains employed until that date and continues to receive the pay and benefits specified by their agreement. During the period, the employer may limit workplace attendance, system access, client contact, or other duties. The arrangement can give the employer time to protect sensitive information and manage a handover, but it can also delay the employee’s start in a new role. In the United States, garden leave is not a standard requirement for every departure and often depends on the terms of an employment agreement.

How Garden Leave Works

Garden leave, also called gardening leave, is a period when an employee remains employed but is told not to perform some or all of their usual work. The employer may ask the employee to stay away from the workplace and restrict access to company systems or records. Some arrangements require the employee to remain available for reasonable questions or transition support.

The name suggests time spent tending a garden, but the arrangement is primarily a way to manage the period between an employee’s active role and their formal departure. It has historically appeared in executive agreements and is also used in roles where employees have access to sensitive business information or close client relationships. Wikipedia’s overview of garden leave describes the arrangement as paid time away before employment formally ends.

Garden leave usually begins after an employee resigns or is told that their employment will end on a future date. Instead of working through the notice period, the employee is directed to step away from active duties. For example, an employee with a 30-day notice period may remain employed and paid through the end date while no longer managing customer relationships or accessing internal plans.

The agreement and the employer’s written instructions determine what the employee can and cannot do. Important terms include the start and end dates, pay and benefits, availability for handover questions, access restrictions, confidentiality obligations, and whether the employee may begin other work before the employment end date. Investopedia’s explanation also describes garden leave as paid time away during a notice period that can protect an employer’s interests.

Why Employers Use Garden Leave

The main purpose is to manage transition risks without ending the employment relationship immediately. This can matter when a departing employee has close client ties, knows sensitive plans, or is moving to a competitor. The employer can reduce the employee’s access to current information while arranging a handover and preparing for the departure.

Protecting Confidential Information

An employee who is still actively working may have access to pricing, product plans, sales pipelines, technical materials, or strategic decisions. Restricting access can reduce the chance that current information follows the employee into a new role. Garden leave does not eliminate confidentiality risks by itself. Employers still need appropriate access controls and a careful offboarding process.

Supporting Client and Team Transitions

Some employees are important contacts for customers, vendors, or internal teams. A period away from daily work gives the employer time to assign replacements and communicate changes. That can help stabilize relationships before the employee’s final departure and reduce disruption after they leave.

Reducing Conflict During Departure

Both sides may prefer a clean break from daily work after a departure is announced. The employee can step away from the role while the employer avoids a distracted or uncomfortable notice period. The employee remains subject to the terms of the arrangement until employment ends.

Garden Leave and Non-Compete Agreements

Garden leave and non-compete agreements can serve related purposes, but they operate differently. A non-compete generally seeks to limit certain competitive work after employment ends. Garden leave keeps the employee employed during the restricted period and generally includes continued pay under the arrangement.

An employer may use garden leave instead of or alongside other restrictive provisions. The label alone does not determine the effect. The contract language matters along with the employee’s role, the period involved, compensation, and applicable legal requirements.

What Garden Leave Can Mean for Employees

Garden leave can provide paid time away from day-to-day work during a career change. It may give an employee time to rest, prepare for a new position, or handle personal responsibilities while income continues under the agreement.

There can also be important limits. An employee may not be able to start a new job until the employment period ends, especially if the agreement requires them to remain employed and available. They may also be restricted from contacting clients or colleagues and may need to return company property promptly.

Employees should check the final employment date and the terms governing salary, benefits, and variable compensation. They should also understand whether outside work is permitted, what confidentiality or non-solicitation obligations continue, and whether they must remain available during normal business hours. These details affect both the employee’s plans and the employer’s expectations.

What Employers Should Plan

Garden leave works best when it is planned rather than improvised. Employers should review the employment agreement and notice terms before deciding whether to use it. They should put the arrangement in writing and state its duration, pay and benefits, availability expectations, access limits, and any restrictions on outside work.

A coordinated transition also involves the employee’s manager and the relevant HR, payroll, IT, and security teams. The employer can tailor system access to the employee’s role and business needs, plan respectful communications with clients and coworkers, and document the return of devices and other company property. Consistent handling helps ensure that the process is clear to the departing employee and the teams responsible for carrying it out.

In the United States, employment is generally at will, so employers are not ordinarily required to provide a notice period. A garden leave arrangement therefore often depends on a specific contract or agreement. In other locations, the applicable rules and employment practices may differ. Organizations with employees in multiple jurisdictions need to account for differences in contracts, notice requirements, pay practices, and post-employment restrictions.

*This article is for general informational purposes only and is not legal advice.