Garden leave
is keeping an employee employed and paid through their notice period while excluding them from work — protecting clients, data and teams during sensitive exits. Standard in the UK and common across Europe (Freistellung in Germany, release from duty in Switzerland), with enforceability tied to contract clauses.
Using garden leave properly
The mechanics: employment continues — salary, benefits, accruals, loyalty duties — while duties are suspended; the employee remains bound by confidentiality and (usually) exclusivity, which is the point: a competitor cannot have them until notice ends. UK practice expects an express clause; German and Swiss practice allow unilateral release with pay under conditions; holiday can often be set against the period within limits.
Garden leave interacts with restraints: time spent on garden leave commonly offsets post-termination non-compete duration, and courts weigh the combined restraint’s reasonableness.
FAQ
Is garden leave paid?
Fully — salary and contractual benefits continue, because employment continues. Attempts to trim pay or benefits during garden leave undermine both the leave and any linked restraints. Bonuses accrue per plan terms, a drafting point worth settling in the clause.
Can the employee work elsewhere during garden leave?
Normally no — the exclusivity of employment persists, which is exactly the restraint value. Taking competing work during garden leave breaches the continuing contract and forfeits the protection-money logic; permitted outside activities, if any, are for the employer to concede in writing.