Garden Leave Explained

Definition of Garden Leave

Garden leave refers to a situation in which an employer releases an employee from their work duties during the notice period, while continuing to pay their salary and maintain their benefits. The employee remains officially employed but does not actively perform their functions during this time.

This practice, which originated in the United Kingdom, is increasingly used in Canada—particularly for sensitive positions or for employees who have access to strategic information.

Why Use Garden Leave?

Employers typically implement garden leave in the following circumstances:

• The employee resigns to join a competitor
• The organization ends the employment but wishes to limit access to systems or clients during the notice period
• The trust relationship has been broken, but the notice obligation still applies
• To avoid a negative influence on colleagues or the work environment

Garden leave allows employers to protect their business interests while respecting legal obligations regarding notice periods.

How Does Garden Leave Work?

During Garden Leave :

• The employee remains officially employed
• They continue to receive salary and benefits
• They no longer actively work, unless asked to assist
• They are usually required to remain available (e.g., to take calls or hand over files if needed)

The employer may also impose contractual restrictions, such as prohibiting the employee from contacting clients, disclosing information, or starting a new job during the period.

In Summary

Garden leave is a period during which an employee is released from work obligations while still being paid throughout their notice. It enables the employer to safeguard sensitive assets while fulfilling legal requirements. This practice is most often applied to executives, specialists, or employees leaving for a competitor.

Important Notice - The information presented in this article is provided for general informational purposes only. It does not constitute legal advice or professional guidance. Each termination or management situation may have its own specific features. We recommend consulting a lawyer, legal advisor, or qualified HR professional before making any decision.