Garden Leave Clause

What This Clause Does

Garden leave means that during your notice period — whether you resign or are terminated — you're still employed and paid, but you're not required (and often not allowed) to come in or do any work. The employer effectively pays you to stay home while you're unable to join a competitor.

This can feel like a bonus paid vacation, but the practical effect is similar to a non-compete: you're locked out of your industry for weeks or months while competitors fill the position. Garden leave periods commonly run 1-6 months. Combined with a separate non-compete, the total lock-out period could be substantial.

What This Looks Like in a Contract

"During any notice period, Company may place Employee on garden leave, during which Employee shall remain employed and receive full base salary but shall not be required to perform duties and shall not, without prior written consent, work for any other employer."

Red Flags to Watch For

• Garden leave period exceeds 3 months
• Combined with a separate non-compete that starts after garden leave ends
• You're prohibited from preparing to start a new job during garden leave
• Company can extend the garden leave period unilaterally

Negotiation Strategies