Garden Leave
A practice where an employee is asked to leave the workplace immediately upon resignation but remains on the payroll — and often prohibited from joining a competitor — during their notice period. Common in finance, law, and roles with access to sensitive information.
Garden leave (also called gardening leave) is a practice where an employee resigns (or is asked to leave) but continues to be paid throughout their notice period while not attending work or taking on new employment. **Origins:** The term comes from the idea that during your notice period, you go 'tend your garden' — you're technically still employed, you're being paid, but you're not in the office. **Why employers use it:** - To prevent an employee who's leaving for a competitor from accessing current clients, strategies, or sensitive information during their notice period - To enforce a cooling-off period before the employee can start work elsewhere - Common for roles with access to confidential client relationships, proprietary strategies, or sensitive financial information **Industries where it's common:** - Investment banking and financial services - Legal (partnership departures) - Technology leadership roles - Sales roles with key client relationships - Executive departures **The employee experience:** Being placed on garden leave means you're paid but forbidden from working. For senior roles with 3-6 month notice periods, this can mean being compensated for months without working — while being unable to start your next role. **New employer implications:** If you're subject to garden leave, your new employer must wait for the period to expire. Negotiate your start date accordingly — and potentially a signing bonus to offset the delayed start.
Why it matters
Garden leave clauses in senior employment contracts can delay career transitions by weeks or months. Understanding whether your contract includes such provisions — and what the implications are for a new role timeline — is important before giving notice.
Candidate tip
If you're being placed on garden leave, confirm in writing exactly what you can and cannot do during the period — the restrictions vary (some allow general business activity but not competitor employment; others are broader).
Related terms
Notice Period
Offers & NegotiationThe time between giving notice that you're leaving a job and your last day of work. In the US, two weeks is the professional standard. In some European countries, 1-3 months is legally required. Some roles have contractual notice requirements.
Non-Compete Agreement
Offers & NegotiationA contract clause that restricts a former employee from working for competitors or starting a competing business for a period after leaving. Enforceability varies dramatically by state. California bans them entirely; other states enforce them with limitations.
Employment Contract
Offers & NegotiationA legally binding agreement between employer and employee that specifies the terms of employment — compensation, role, duration (if fixed), termination conditions, and any special provisions. More common for executives, contractors, and international hires than for general US employees.
Severance Package
Offers & NegotiationCompensation and benefits provided by an employer when terminating an employee — typically a payment based on tenure, plus benefits continuation. Severance is not legally required under US federal law but is common at professional employers.