A period of time defined by contract when an employee generally does not work (or performs only limited duties) but remains employed and continues to receive normal salary payments or other benefits. Depending on the contractual provisions, during the garden leave period the employer may prohibit the employee from:

Because the employee remains employed by the employer, the employee is bound by the employee's contractual terms of employment, including any confidentiality obligations or similar restrictions and the employee's duty of loyalty (or fiduciary duty, if applicable). Employees cannot work for a competitor during the garden leave period.

Garden leave provisions may be used instead of or in conjunction with traditional non-compete provisions or other restrictive covenants (see Practice Note, Non-Compete Agreements with Employees).

For more information on the use of garden leave provisions, see Practice Note, Garden Leave Provisions in Employment Agreements. For a sample clause, see Standard Clause, Garden Leave Provision.