Garden Leave Explained: Getting Paid Not to Work After Layoff
Garden leave (also called "gardening leave") is a practice where an employer tells you to stay away from work during your notice period while continuing to pay your full salary and benefits. You remain technically employed but don't perform any work duties.
Key Takeaway: Garden leave is generally good for employees - you get paid not to work while you prepare for your next role.
What Is Garden Leave?
Garden leave is a period during your notice of termination (or resignation) where your employer requires you to stay home. During this time:
- You receive full pay including your regular salary and benefits
- You don't come to the office or perform any work duties
- You remain an employee of the company until the notice period ends
- Restrictive covenants apply - you typically cannot start working for a competitor or solicit clients
The term originates from British employment law, where the idea was that employees would spend the time "tending their garden" while waiting out their notice period.
Garden Leave vs. Being Laid Off
| Feature | Garden Leave | Layoff |
|---|---|---|
| Employment Status | Still employed | Terminated |
| Pay | Full salary continues | Stops (may get severance) |
| Benefits | Continue | End (COBRA available) |
| Duration | Notice period (weeks to months) | Permanent |
| Non-compete | Enforced during leave | Depends on agreement |
| Unemployment | Not eligible (still employed) | Eligible |
How Does Garden Leave Work?
Typical Garden Leave Process
- Notice given: Either you resign or your employer gives notice of termination
- Garden leave invoked: Employer informs you that you'll be on garden leave
- Immediate departure: You leave the office, return company property
- Paid waiting period: You continue receiving pay for the duration of your notice period
- Employment ends: When the notice period expires, your employment formally ends
How Long Does Garden Leave Last?
Garden leave duration depends on your notice period, which is typically specified in your employment contract:
- Junior roles: 2-4 weeks
- Mid-level roles: 1-3 months
- Senior/executive roles: 3-6 months
- C-suite: 6-12 months
Who Gets Put on Garden Leave?
Employers typically use garden leave for employees who:
- Have access to sensitive business information or trade secrets
- Have strong client relationships the company wants to protect
- Work in competitive industries (finance, tech, consulting)
- Are joining a competitor
- Hold senior leadership positions
Your Rights During Garden Leave
What You Can Do
- Job search: You can look for new jobs and interview
- Collect full pay: Your salary and benefits continue unchanged
- Use vacation time: Some garden leave agreements let you use accrued PTO
- Prepare for your next role: Study, upskill, get certifications
What You Typically Cannot Do
- Start a new job: You're still employed and bound by your contract
- Work for competitors: Non-compete clauses are actively enforced
- Solicit clients or colleagues: Non-solicitation terms apply
- Share confidential information: Confidentiality obligations remain
Can You Negotiate Garden Leave?
Yes. If your employer offers garden leave, you may be able to negotiate:
- Shorter duration: Ask to reduce the garden leave period so you can start your new job sooner
- Waiver of restrictions: Request that non-compete or non-solicitation clauses be waived
- Additional compensation: Negotiate a lump sum in lieu of the extended garden leave period
- Specific terms: Clarify exactly what activities are permitted
Garden Leave in the United States
Garden leave is less common in the US than in the UK and Europe, but it's growing - especially in:
- Financial services (banks, hedge funds, private equity)
- Technology (especially senior engineers and executives)
- Consulting (particularly strategy and management consulting)
- Sales (roles with significant client relationships)
State-Specific Considerations
- California: Non-compete clauses are generally unenforceable, which may limit the purpose of garden leave
- New York: Garden leave is common in finance; courts generally uphold reasonable periods
- Illinois, Colorado, Oregon: Recent laws restricting non-competes may affect garden leave enforcement
What to Do When Placed on Garden Leave
Immediate Steps
- [ ] Get the garden leave terms in writing
- [ ] Confirm your pay, benefits, and bonus eligibility during the period
- [ ] Return all company property as requested
- [ ] Understand your restrictions (non-compete, non-solicitation)
- [ ] Review your employment contract with an attorney if needed
During Your Garden Leave
- [ ] Update your resume and LinkedIn profile
- [ ] Network and explore new opportunities
- [ ] Take online courses or get certifications
- [ ] Rest and recharge
- [ ] Plan your finances for the transition
- [ ] Research potential employers
Frequently Asked Questions
Is garden leave the same as being fired?
No. During garden leave, you are still employed and receive full pay and benefits. You are simply not required to perform work duties. Being fired means your employment is terminated.
Do I have to accept garden leave?
In most cases, yes - if your employment contract includes a garden leave clause. If there's no contractual basis, you may be able to negotiate the terms or refuse.
Can I start a new job during garden leave?
Generally no. You remain employed by your current company during garden leave, and starting work elsewhere would typically violate your employment agreement. However, you can negotiate an early release.
Does garden leave count toward my notice period?
Yes. Garden leave runs concurrently with your notice period. When the notice period ends, so does the garden leave and your employment.
Do I get paid during garden leave?
Yes. Garden leave includes full salary and benefits continuation. This is what distinguishes it from unpaid suspension or termination.