What Does “Garden Leave” Mean in a Contract?
A notice period where the employee must stay home but continues to receive salary, often used alongside non-compete agreements.
Detailed Explanation
Garden leave requires employees to give extended notice before leaving, during which they're paid but cannot work—theoretically they could tend their garden. This keeps them away from competitors while information becomes stale.
Some jurisdictions (like Massachusetts) require garden leave or equivalent consideration for non-competes to be enforceable. It compensates employees for the restriction on their mobility.
Example in a Contract
“Upon resignation, Employee shall provide 90 days' notice during which Employee shall be placed on garden leave, receiving full salary and benefits but not performing duties or accessing company systems.”
Why It Matters
Garden leave is actually beneficial for employees in non-compete situations—you're paid during the restricted period. If asked to sign a non-compete without garden leave, you're being restricted without compensation.
Related Terms
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