What is Garden Leave?
Definition
Garden leave is a contractual provision requiring you to remain employed (and paid) during your notice period while being barred from performing any work for your current employer or any competitor. This arrangement is common in finance, executive employment agreements, and senior tech roles where employees have access to sensitive strategy or client relationships. The employer keeps paying your salary, but you are effectively sidelined, unable to start your next position or engage with clients. This matters because garden leave extends the practical restriction period beyond what a non-compete alone would impose. For example, if you have a 90-day garden leave period followed by a 12-month non-compete, you are effectively restricted from competing for 15 months total. Watch for garden leave provisions that do not guarantee full salary continuation, that combine with lengthy non-competes to create excessive restriction periods, or that require you to remain available for consultation during the leave without clear limits on what that means.
Found this in your contract?
Upload it for a full AI analysis. Get a risk score, every flagged clause quoted and explained, and a clear sign-or-walk-away recommendation in under a minute.
Analyze My Contract Free →