Garden Leave
Also called: Gardening Leave · Suspension During Notice
Garden leave requires an employee to stay away from work during their notice period — still paid and still bound by their contract, but not performing active duties or having access to company systems. It's used to protect sensitive information and client relationships while a departing employee serves out their notice.
In more detail
The employee remains an employee throughout garden leave — still bound by confidentiality and, depending on the contract, still restricted from working for a competitor — which is precisely the point: it extends the practical effect of restrictive covenants during a period when the employee might otherwise be actively transitioning to a competitor.
For roles with access to sensitive strategy, client relationships, or trade secrets, garden leave reduces the risk of a departing employee using their remaining access to benefit a new employer before they've formally left.
A garden leave clause needs to specify the employer's right to invoke it (not automatic in every notice period), the employee's continued pay and benefits during the period, and any restrictions that apply on top of their normal employment terms.
A senior sales executive resigns to join a competitor. The employer invokes garden leave for the 90-day notice period — the executive remains employed and paid but has no access to client accounts or company systems, reducing the risk of client relationships transferring before departure.
What our lawyers check
- Whether the employer has an express right to invoke garden leave, or only an implied one
- What pay and benefits continue during the garden leave period
- Whether restrictive covenants run concurrently with or after garden leave
- Any system access or contact restrictions that apply during the period
Contracts where this clause matters
Related terms
This definition is general information about commercial contracting practice, not legal advice. How a clause operates depends on the specific wording of your agreement and the law that governs it. For advice on your contract, have it reviewed by a lawyer.
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