Garden Leave Clause: Paid Time Off During Your Notice Period
Garden leave (also called "gardening leave") is when company asks you to stay home during your notice period while still paying you full salary. Sounds good—get paid to not work—but it can prevent you from starting your next job on time and signals company doesn't trust you. This guide explains garden leave, enforceability, and when to negotiate for or against it.
What Is Garden Leave?
Garden leave: Company says "During your 30-day notice period, please don't come to office. Stay home. We'll pay you full salary." You get: Full salary during notice period. Company gets: Prevents you from accessing confidential info, prevents you from talking to customers/employees in person, reduces liability. Enforceability: Generally enforceable if contract specifies it. You can't argue "But I want to work!" if contract says garden leave applies. Geography: More common in UK/EU; less common in US. But increasingly US companies use it for executive departures.
Pros and Cons of Garden Leave
PROS: (1) Get paid while not working (vacation-like), (2) Time to start new job prep (interview, onboarding), (3) Reduced stress (not in office), (4) Protected from non-compete during notice period (arguably). CONS: (1) Can't start new job immediately (if have 30-day garden leave), (2) Creates awkward situation with new employer ("I can't start for a month"), (3) Signals company doesn't trust you, (4) Can create negative references ("We had to garden leave them," suggests distrust), (5) If new job starts before garden leave ends, you're double-committed (old job paying you, new job needing you).
How to Handle Garden Leave Clauses
Before signing: (1) Negotiate whether garden leave applies to you (might not apply to junior roles), (2) If applied, keep it short (2 weeks max, not 4 weeks), (3) Ask for paid time off or flexibility (can you work on side projects? Consulting?), (4) Negotiate carve-out: If you have new job lined up, can you start sooner?, (5) Negotiate with new employer: Tell them upfront about garden leave, ask if they'll delay start date. If garden leave is imposed: (1) Take it as extended vacation (get rest before new role), (2) Use time for skill development (online courses, projects), (3) Document it in writing (email to confirm you're on garden leave), (4) Check what "working from home" means—can you do consulting? Check non-compete/confidentiality.
Frequently Asked Questions
Is garden leave enforceable?
Yes, if specified in contract. Courts uphold it as reasonable way for company to protect confidential information and prevent poaching of employees/customers. You can't refuse to comply without breach of contract consequences.
If put on garden leave, am I still bound by non-compete?
Yes. Garden leave doesn't exempt you from non-compete. You still can't work for competitors during notice period. But some argue that if company is paying you to not work (garden leave), non-compete should be narrower during that period (e.g., no non-compete outside notice period). Negotiate this explicitly.
Should I accept a contract with garden leave?
Depends on role. If executive/sensitive position, company might insist. If junior role, you can negotiate it out. Accept only if: (1) Garden leave is ≤2 weeks, (2) You can negotiate carve-out for new job, (3) New employer will wait for notice period. Otherwise, avoid or negotiate shorter period.
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