Hiring glossary
What is garden leave?
Garden leave (or gardening leave) is when an employer tells an employee who is leaving not to come into work, or to work from home or elsewhere, for some or all of their notice period, while they remain employed on full pay and benefits.
The term is British. GOV.UK describes it as an employer asking an employee not to come into work, or to work at home or another location, during their notice period, and confirms the employee keeps the same pay and contractual benefits. The person is still an employee, so they remain bound by their contract, including confidentiality and the duty not to work for anyone else, until the notice period ends.
Employers mainly use garden leave when someone is leaving for a competitor or is close to clients, sensitive information or deals. It keeps them away from colleagues, customers and current information while their knowledge goes stale, and it can be a cleaner alternative to a post-employment non-compete, whose enforceability is less certain. Some employers also use it when a working relationship has broken down and it would be awkward for the person to stay.
To use garden leave with confidence, include an express garden leave clause in the contract, especially for senior and client-facing roles, stating that the employer may require the employee not to attend work or contact clients and colleagues during notice. Confirm the decision in writing: the dates, that pay and benefits continue, whether the person must stay available for handover questions, and what they must return (laptop, keys, documents). Agree how any untaken holiday will be dealt with.
Outside the UK, the same arrangement is used under other names, and whether an employer can impose it depends on the contract and local law. This is general information, not legal advice.
Also called: gardening leave.
Example
A sales director at a London insurer resigns to join a rival with three months’ notice. The employer places him on garden leave for the whole period: he stays on full salary and benefits, hands back his laptop, must not contact clients or start his new job, and his accounts are moved to a colleague on day one.
Related terms
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