What is garden leave
Last updated: April 1, 2026
Key Facts
- Garden leave is a paid absence period typically given during an employment notice period
- Employees continue to receive their full salary while on garden leave
- It prevents outgoing employees from immediately joining competitors or sharing confidential information
- Garden leave is most common in senior positions, finance, law, and consulting roles
- The duration varies by contract but typically ranges from weeks to several months
Overview
Garden leave, also known as 'gardening leave,' is a practice where an employer places an employee on paid leave during their notice period. Rather than working out their final weeks or months, the employee receives their regular salary but is not required to report to work or perform job duties. This arrangement serves as a protective measure for employers while still providing financial security for departing employees.
Purpose and Benefits
The primary purpose of garden leave is to protect company interests after an employee announces their departure. During this period, the employee cannot access company systems, attend meetings, or interact with clients and colleagues, reducing the risk of:
- Sharing proprietary information with competitors
- Recruiting colleagues to a new employer
- Damaging client relationships
- Accessing confidential data or trade secrets
Industries and Positions
Garden leave is most prevalent in sectors where employees have access to sensitive information or valuable client relationships. These include investment banking, management consulting, hedge funds, law firms, pharmaceutical companies, and technology firms. Senior executives, specialists, and employees with strategic knowledge are more likely to receive garden leave offers than junior staff.
Duration and Terms
The length of garden leave varies significantly based on the employee's role, seniority level, and contract terms. In some cases, it may last only a few weeks, while senior executives might be on garden leave for six months to a year. The terms are typically outlined in employment contracts and negotiated at the time of departure.
Legal Considerations
Garden leave is recognized in employment law in many countries, including the UK and Australia. However, enforceability depends on whether the duration is considered reasonable by courts. Excessively long garden leave periods may be challenged as unreasonable restraint of trade. The arrangement must clearly state the employee's obligations, any post-employment restrictions, and the compensation they'll receive.
Related Questions
What's the difference between garden leave and severance?
Garden leave is paid time off during the notice period where an employee remains technically employed but doesn't work, while severance is a lump sum payment given when employment terminates. Garden leave maintains the employment relationship; severance ends it.
Can employees refuse garden leave?
Employees generally cannot refuse garden leave if it's written into their employment contract. However, they can negotiate the terms or duration during employment or when notice is given. Refusing could potentially breach employment terms.
Does garden leave affect final paychecks?
No, garden leave doesn't affect final pay. Employees continue receiving their regular salary and benefits during the garden leave period, though this depends on contract terms regarding accrued vacation or bonuses.