Garden Leave

Employment

A period during which a departing employee remains on the payroll and is bound by their employment terms but is not required to work, preventing immediate access to a competitor's operations.

## Garden Leave

Garden leave is a period where an employee who has resigned or been given notice continues to receive full pay and benefits but does not come to work.

### Purpose

- Prevents the employee from joining a competitor immediately.
- Keeps the employee bound by their employment contract (NDA, non-compete).
- Allows time for the company to transition the employee's responsibilities.
- The employee's knowledge of current projects, clients, and strategy becomes stale.

### Common In

- Financial services (banking, hedge funds, trading).
- Senior executive roles.
- Sales roles with client relationships.
- Technology companies with competitive IP.

### Duration

Typically 1–6 months. In financial services, 3–6 months is standard for senior positions.

### Employee Rights During Garden Leave

Full salary and benefits continue. The employee may not work for anyone else or start a competing business. They may be required to be available for questions or handover tasks.