Garden leave is when an employee who is leaving a job stays on the payroll during their notice period but is told to stay away from work. They keep getting paid and keep their benefits, yet they do not come into the office, log into systems, or contact clients and colleagues. The term, also written as gardening leave, comes from the idea that the person has nothing to do for work, so they might as well tend the garden.
It sounds like a strange perk, and for the employee it often is a paid break. For the employer, it is a protective move. Here is how it works and what it means if it happens to you.
Quick Facts
| Question | Quick answer |
|---|---|
| What is it? | Paid time away from work during your notice period, while still employed |
| Do you get paid? | Yes, full salary and usual benefits continue |
| Can you work elsewhere? | No, you are still under contract and bound by its terms |
| How long does it last? | Usually the length of your notice period, often weeks to a few months |
| Who gets it? | Most often senior, sensitive, or client-facing roles |
| Common industries | Finance, law, and technology |
What Does Garden Leave Mean?
When you resign or are given notice, the normal expectation is that you work through your final weeks. Garden leave replaces that. Instead of working out your notice, you are asked to step back while remaining officially employed. You stay on payroll, your salary and benefits continue, and your contract stays in force, including any confidentiality and non-compete obligations.
The catch is that you are still tied to your employer for that period. You generally cannot start a new job, contact clients, or work for a competitor until the leave ends and your employment formally finishes.
Why Do Employers Use It?
Garden leave is mostly about protection. When someone with access to sensitive information, trade secrets, or key client relationships is on their way out, an employer may not want them inside the business during the handover. Keeping the person home, but still on contract, gives the company time to secure clients, transition accounts, and let time-sensitive knowledge go stale before that employee can join a competitor.
It often works alongside non-compete and non-solicitation clauses. By keeping the employee out of the market for a set period, the employer reduces the risk of them taking relationships or information straight to a rival.
How Long Does Garden Leave Last?
The length usually matches the notice period set in the employment contract. That can range from a couple of weeks to several months, with senior roles tending toward the longer end. Courts in some places will push back on garden leave periods they consider excessive, so very long stretches are not always enforceable.
Garden Leave vs Notice Period vs Severance
These terms get mixed up, so here is the difference:
- Regular notice period: You keep working and keep your normal access until your last day.
- Garden leave: You stay employed and paid through the notice period, but you do not work and lose access to systems and people.
- Payment in lieu of notice (PILON): Your employment ends immediately, and you get a lump sum equal to what you would have earned during notice. Because the job has ended, you are free to move on right away.
- Severance: Money or benefits paid after employment ends, often as goodwill or after a layoff. It is separate from garden leave.
Is Garden Leave Common in the US?
The practice started in the UK and is most established there, but it does appear in the US, especially in finance, law, and tech, and especially for senior staff. Large financial firms sometimes use garden leave periods of roughly one to three months for high-level employees. Notably, garden leave can be used even in states like California that restrict non-compete agreements, because the employee is still technically employed during the leave rather than restricted after leaving.
Your Rights and Obligations During Garden Leave
While on garden leave you generally continue to receive pay and benefits and keep accruing them as normal. In exchange, you are expected to follow your contract: stay confidential, avoid competitors, skip other paid work, and remain reasonably available to answer handover questions if asked. If you are unsure what your specific contract allows, that is a good moment to read it closely or get advice.
If you are weighing a resignation and want to understand the full process, see our guide on how to quit a job, and for the standard exit route read how to put in your two weeks.
Frequently Asked Questions
Do you get paid during garden leave? Yes. You receive your normal salary and usual benefits throughout the garden leave period, since you remain employed until it ends.
Can you start a new job while on garden leave? Usually not. You are still under your current contract, which typically prevents you from working for someone else, especially a competitor, until the leave is over.
Is garden leave the same as being fired? No. You are still employed and paid. It is a way of managing your exit, and it can follow either a resignation or a termination notice.
Can an employer force you onto garden leave? Generally only if the contract allows it or both sides agree. Imposing it without any basis can create legal risk for the employer, which is why it is usually written into senior contracts in advance.
What does the term mean literally? It comes from the idea that an employee who is paid but kept away from work has free time, enough to spend it gardening.
