What Is Garden Leave? How It Works and What It Means for Your Career

If you've resigned from a job or been told you're being let go, you may have heard the term "garden leave." This practice, more common in certain industries and countries, has specific implications for your career transition. Here's everything you need to know.

What Is Garden Leave?

Garden leave (also called "gardening leave") is a practice where an employee who has resigned or been terminated is instructed to stay away from work during their notice period while still receiving full pay and benefits.

Garden Leave Definition

During garden leave, you:

• Remain employed by the company
• Receive your normal salary and benefits
• Are prohibited from coming to work
• Cannot work for a competitor
• Must remain available if needed
• Are typically restricted from contacting clients or colleagues

The term originated in Britain, where the idea is that the employee has nothing to do but "tend their garden" while waiting out the notice period.

How Does Garden Leave Work?

Typical Garden Leave Process

1. Notice is given (by you or employer)
2. Employer invokes garden leave clause
3. You're asked to leave the office
4. You hand over responsibilities
5. You remain "employed" during notice period
6. You receive full pay and benefits
7. Employment officially ends after notice period

What You Can and Cannot Do

Why Do Employers Use Garden Leave?

Protecting the Business

Preventing competitive harm:

• Keeps you away from sensitive information
• Reduces risk of client poaching
• Information you have becomes "stale"
• Clients transition to other employees

Securing the transition:

• Time for knowledge transfer
• Orderly handover of responsibilities
• Reduces disruption to team
• Protects client relationships

When Garden Leave Is Common

Industries:

• Financial services
• Sales roles with key accounts
• Senior executives
• Technology with trade secrets
• Media and entertainment
• Consulting

Situations:

• Joining a competitor
• Senior-level resignations
• Terminations with notice
• Merger/acquisition transitions

Garden Leave vs. Other Terms

Garden Leave vs. Notice Period

Garden Leave vs. Pay in Lieu of Notice (PILON)

Garden Leave vs. Non-Compete

Legal Aspects of Garden Leave

Enforceability

For garden leave to be enforceable:

• Usually needs explicit clause in contract
• Must be reasonable in duration
• Should protect legitimate business interests
• Requires continued payment

Your Rights During Garden Leave

You typically retain:

• Full salary and benefits
• Accrual of vacation/PTO
• Health insurance
• Right to reasonable reference
• Protection from wrongful termination

Potential Issues

Garden leave may be challenged if:

• No contractual basis exists
• Duration is unreasonable
• Payment isn't maintained
• Restrictions are too broad

Note: Employment law varies by location. Consult an attorney for specific situations.

Garden Leave in Different Countries

United Kingdom

• Very common practice
• Strong legal framework
• Typical in finance, law, consulting
• Usually 1-6 months
• Well-established case law

United States

• Less common than UK
• More often uses non-competes instead
• Growing in finance and tech
• State law variations matter
• Must be in employment contract

Other Countries

• Australia: Common in senior roles
• Canada: Used similarly to UK
• Germany: Specific legal requirements
• Singapore: Growing practice in finance

Maximizing Your Garden Leave

What to Do During Garden Leave

Career preparation:

• Update resume and LinkedIn
• Research target companies
• Network (within restrictions)
• Practice interviewing
• Plan your job search strategy

Personal development:

• Take courses or certifications
• Read industry materials
• Rest and decompress
• Exercise and health focus
• Spend time with family

Practical matters:

• Understand your restrictions
• Know when you can start interviewing
• Plan financially
• Prepare for first day at new role

What to Avoid

• Don't violate your restrictions
• Don't badmouth your employer
• Don't contact clients inappropriately
• Don't share confidential information
• Don't start work elsewhere early

Negotiating Garden Leave

If You Want Shorter Garden Leave

You might negotiate:

• Reduced notice period
• Earlier release to start new job
• PILON instead of garden leave
• Modified restrictions

If You Want Garden Leave

If leaving without it:

• Ask for garden leave to decompress
• Request it as part of resignation
• Negotiate during separation discussions

Key Negotiation Points

• Length of garden leave period
• Scope of restrictions
• Ability to interview
• Reference terms
• Exact end date

Garden Leave and Job Searching

Can You Interview During Garden Leave?

Usually yes:

• Interviewing isn't typically restricted
• You can't start work elsewhere
• Be transparent with potential employers
• Know your official end date

Explaining Garden Leave to New Employers

"I'm currently on garden leave from my previous employer through [date]. I'm available to start after that date."

Most employers in relevant industries understand garden leave.

Timing Your Job Search

• Start interviewing during garden leave
• Time offers to align with your end date
• New employer should understand the situation
• May need to negotiate start date

Key Takeaways

1. Garden leave means staying home with pay during your notice period
2. You remain employed but can't work or start a new job
3. Common in finance, sales, and executive roles where client relationships matter
4. Usually requires a contract clause to be enforceable
5. Different from PILON, where employment ends immediately
6. Different from non-compete, which applies after employment ends
7. Use the time productively—prepare for your next role
8. You can typically interview but not start work elsewhere
9. Restrictions vary—know exactly what's prohibited
10. Legal rules vary by location—consult an attorney if unclear

Related Resources

• Severance Negotiation Guide
• First 24 Hours After Layoff
• How to Explain Employment Gaps
• Non-Compete Considerations